SAIL to invest Rs 1,300cr for development of Taldih block

KOLKATA: To meet its increased requirement of iron ore, state-owned Steel Authority of India Ltd (SAIL) has decided to invest Rs 1,300 crore for developing an iron ore mine at Taldih in Orissa and discussion was on with the Kudermukh Iron Ore Comapny Ltd (KIOCL) for this.

SAIL has enterted into an MOU with KIOCL to form a joint venture for developing the Taldih deposit in Barsua-Taldih-Kalta area and MECON was assigned the job of preparing the feasibility report, company sources told PTI.

SAIL has already got the mining lease in the area where two mines -- one at Barsua and another at Kalta -- were already working. Taldih block has about 238 million tonne of mineable reserve.

Talks were currently underway with KIOCL for developing the mine. A two million tonne pelletisation plant was also being planned, M Roy, executive director, SAIL's Raw Materials division said.

After completion, the project would be able to supply additional iron ore upto 4.25 million tonne per annum including two m.t of pellet, he said.

The steel major has planned to increase its steel producing capacity to 22.5 million tonne from the present 13 m.t with a total investment of Rs 37,000 crore.

The company which was entangled in a legal battle with Jharkhand government on the issue of cancellation of lease of three blocks of the Chiria mines, was trying to reach an amicable settlement, the sources said.

A meeting convened by the Prime Minister's office to solve the problem involving Chiria mine was held early this month and another has been scheduled next week.

A senior official of the Jharkhand government had stated that chances of an out of court settlement of the problem were 'bright' following 'positive' discussions between the two sides at the PMO.

Union Minister of State for Steel Akhilesh Das had on Friday told the Rajya Sabha "If SAIL's mining leases for iron ore in Jharkhand are terminated or are not extended in favour of the company, it will be difficult for SAIL to continue optimum production and it will fail to achieve its growth plan as envisaged in its corporate plan 2011-23."

SAIL sources said that Rs 1,800 crore would be required for developing the Chiria mine in the first phase. Apart from this, the company was ready to provide funds for the development of the state.

SAIL has decided to invest Rs 6,400 crore for the modernisation and expansion of its Bokaro steel plant in Jharkhand.