Mumbai: The Steel Authority of India Limited (SAIL) will invest around Rs5,000 crore for developing new mines in the four mining blocks of Orissa, Jharkhand and Chhattisgarh. SAIL would also invest in beneficiation plants for pelletisation, executive director of SAIL''s raw materials division, M Roy, told reporters. He said the investments would be made till 2011-12.
SAIL has identified four mining blocks located at Chiria, Gua, Kiriburu and Meghahatuburu in Jharkhand, Taldih and Bolani in Orissa, and Rowghat in Chhattisgarh, he said.
SAIL expects additional production of 23.5 million tones of iron ore from new mines and blocks, he said, adding these would help meet the company''s future requirements till 2012.
He said Mecon is preparing the feasibility report for one of the mines even as SAIL is planning to float a global tender for others.
Besides opening new mines SAIL is also increasing production from the existing mines, Roy said.
SAIL produces iron and steel at five integrated plants and three special steel plants, located in the eastern and central regions of the country and close to domestic sources of raw materials, including the company''s iron ore, limestone and dolomite mines.
This explains why SAIL could maintain its performance by significantly improving its physical parameters even as steel companies across the world are faced with the impact of softening of international prices and sharp increase in input costs.
SAIL is on a strong footing and is going ahead with a steady expansion plan to compete with the best in the steel market. With the merger of IISCO, the capacity of SAIL will expand to 22.5 million tonne of hot metal production by 2011-12.
SAIL already has initiated capital schemes worth over Rs3,500 crore which are at various stages of implementation. SAIL has a charted out a capital outlay plan of Rs35,000 crore by 2011-12. The schemes involve some of the recently completed upgradation schemes of BF-4 and ERW pipe plant at Rourkela, cast house slag granulation plant at Rourkela, coal dust injection (CDI) at Bokaro and Bhilai and coal tar injection (CTI) at Durgapur.
Other major schemes in the pipeline include installation of bloom caster and associated facilities at DSP, installation of new slab caster at BSP, revamping Mae-West block system of hot strip mill at BSL and rebuilding coke oven batteries at Bhilai, Bokaro and Rourkela steel plants. A systematic plan for upgradation of blast furnaces in all the plants is being taken up to improve blast furnace productivity.