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Tuesday, December 13, 2011

SAIL planning 15 million tonne pr annum iron ore from Chiria

Tuesday, 13 Dec 2011

The Telegraph reported that Steel Authority of India Limited’s mining consultant Hatch has devised a strategy for a massive 15 fold jump in iron ore output from its Chiria mines.

Hatch’s plan, submitted to SAIL, envisages production from Chiria to reach 15 million tonnes per annum from 1 million tonnes now, which will make it the most productive ore mine in the country.

Hatch has proposed that output be raised in phases first to 7 million tonnes per annum and then to 15 million tonnes per annum.

The INR 5,000 crore investment proposal on mining facilities and an ore beneficiation plant will lead to Chiria meeting a third of SAIL’s ore requirements. With reserves of 2.2 billion tonnes, Chiria has Asia’s largest deposits of high grade ore.

Officials said SAIL had obtained stage 1 forest clearance from the forest and environment ministry for 595.075 hectares of Chiria covering the Ajitaburu, Budhaburu, Sukri-Latur and Dhobil leases. Separate environment clearances have been obtained in March for Chiria’s Budhaburu and Ajitaburu leases. The Indian Bureau of Mines have approved the mining plans for Chiria’s Ajitaburu, Budhaburu, Dhobil and Sukri-Latur leases.

SAIL executives said the development of Chiria is crucial to tits long term plans. They said “It’s the only deposit in India capable of sustaining up to 30 million tonne to 50 million tonne of mechanized mining annually. Over the next half a century, around 40% of SAIL’s iron ore requirement will be met from this one single field.”

Once the ore in the other mines in eastern India gets depleted, Chiria will be the sole supplier to it’s four integrated facilities at Bokaro, Burnpur, Durgapur and Rourkela and to the new unit being built at Burnpur.

(Sourced from

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