Iron and Steel Company Ltd (Tisco), the largest private
sector steel company in India and one of the low-cost
steel manufacturers in the world, has set up a taskforce
to study the feasibility of big investments in the mining
taskforce will make recommendations on the quantum of
investments required to be made and will provide estimates
of the return on investments the company should expect
over a period of time from its mining activity. The taskforces
report may be ready in two months. Anticipating a favourable
response from the taskforce, Tisco has already applied
to the government for assigning more mining leases.
mining activity is currently restricted to mining of coal,
iron ore, flux and manganese, all of which are important
inputs for it. While coal is an important source of energy,
others are key raw materials for making steel. Tisco already
has the technology and know-how to run a mining activity,
and the management thinks it can comfortably convert it
into an independent profit centre.
is already a big mining-producer of coal, and the government
has been mulling over converting coal mining into a private
sector activity. Tisco produces around 5 million tonnes
of coal. While it consumes roughly 3.50 million tonnes
for its captive use, it sells the balance quantity of
1.5 million tonnes to the Steel Authority of India (Sail),
which is deficient in this all-important commodity.
addition to buying from Tisco, Sail also imports coal
to meet its captive requirement. Tisco sells coal to Sail
at government-determined prices and if the sector is decontrolled,
Tisco would stand to benefit immensely in terms of higher
Tisco presently mines its coal from out of the collieries
located in Jharia in the Dhanbad district of Chattisgarh
and in West Bokaro in Bihar. Its collieries located in
Jharia are divided into Jamadoba and the Sijua groups.
Tisco mines its iron ore requirements from mines located
in Chattisgarh, Orissa and Karnataka. It also has a few
dolomite mines in Bhutan.