BL reported that Rashtriya Ispat Nigam Ltd is poised to obtain its first iron ore mining lease in Rajasthan for relatively low grade magnetite.
It is also expected form an equity linked joint venture with Andhra Pradesh Mineral Development Corporation in February for a high grade haematite reserve in Andhra Pradesh.
The CMD of RINL, Mr AP Choudhary, confirmed the developments to BL and said both were likely to take place next month.
RINL's applications for mining leases in Rajasthan's Bhilwara district are at an advanced stage of clearance. According sources, the Rajasthan Government has consolidated RINL's two area specific applications and has decided to allow mining lease rights for 1,043 hectares, out of 5,252.3 hectares applied for. Initial estimates suggest that the total magnetite deposit in the proposed Rajasthan project area, now under consideration, is around 400 million tonnes with an average Fe content of about 41%
In Andhra Pradesh, home state of RINL's steel plant, the company is in the process of getting into a joint venture agreement for exploration and mining of iron ore over an area of 3,400 hectares of land in Anantapur district of the state. The area, spread across Obulapuram and Kalyandurg range, is known to have two haematite deposit bands - one with 60 per cent plus Fe content and the other with 57 per cent plus. RINL had filed application for prospecting licence for the area in October 2011. As APMDC already possesses the right to prospect and explore in the area, it is now decided that a joint venture of the two will carry out the exercise.
(Sourced from BL)