SAIL plans to build sponge iron plant

SAIL plans to build sponge iron plant

According to recent news in the market, Steel Authority of India Ltd (SAIL) plans to build a sponge iron blast to feed its blast furnaces. A company official stated that as SAIL has its own mines, a new sponge iron plant will reduce costs. However, SAIL has also suffered from shortage of coal in recent times. To compensate the situation, the company has started using different materials to substitute coal. For instance, at Bhilai plant, instead of coal, furnace oil has been used. Moreover, coal tar is used in Bokaro, Durgapur, and Rourkela plants with the same purpose. These new methods are stated to be used not to reduce production. Shortage of coal has forced SAIL to import coal from Australian mines however the company, not wanting to be dependent on imported coal, plans to build sponge iron plant.