Indian steel giant Steel Authority of India Limited (SAIL) has obtained ‘grant of forest clearance' by the Indian Ministry of Environment & Forests (MoEF) for the Ajitaburu, Budhaburu and Sukri-Latur leases of the Chiria iron ore mines in Jharkhand, India.
SAIL said that the Chiria mines can sustain large, mechanized mining of 30-50 million mt per annum capacity and that their development is vital for the existing and future expansion plans of SAIL. Over the next 50 years, around 40 percent of the iron ore requirement of SAIL would be met from the Chiria mines. After depletion of SAIL's existing mines in the eastern region, the Chiria mines will be the sole source of iron ore for SAIL's four integrated steel plants located at Bokaro, Burnpur, Durgapur and Rourkela.
The company has already initiated actions for development of state-of-the-art mechanised mines in Chiria, initially with a capacity of 7 million per annum. In this regard, SAIL has already appointed a consultant of global repute - M/s Hatch Associates of Australia - for preparation of a detailed project report. Mechanised mining is expected to become operational in Chiria in around three years. The estimated cost for development of the Chiria mines is about INR 50 billion ($1.1 billion). "This is a landmark in our persistent efforts to obtain security of raw material supplies," SAIL chairman C.S. Verma said in the company statememt.