Indian state-run steel producer Steel Authority of India Limited (SAIL) has entered into a long-term mine development operator (MDO) agreement with Kalinga Commercial Corporation Limited (KCCL) for the development and operation of the Rowghat iron ore block, with a planned capacity of 14 million mt per year, the company said in a statement on Monday, December 22.
28-year contract to strengthen iron ore supply security
Under the agreement, KCCL will act as the Mine Developer-cum-Operator (MDO), responsible for the comprehensive development, infrastructure creation and mining operations at the Rowghat block. The contract spans 28 years, including an initial three-year construction phase, during which the mine will be fully developed and readied for commercial operations.
The project is expected to significantly strengthen iron ore supply security for SAIL’s integrated steel plants, supporting stable production levels and ensuring long-term raw material sustainability for the state-owned steel major.
According to the statement, the SAIL–KCCL collaboration will accelerate the operationalisation of the Rowghat mines, enhance domestic iron ore production and reinforce SAIL’s self-reliance in raw material sourcing, which remains a key pillar of the company’s long-term growth and sustainability strategy.