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Monday, January 23, 2012

SAIL not to develop Rowghat iron ore project

Monday, 23 Jan 2012

Business Line reported that Steel Authority of India Limited has decided not to develop and operate the proposed 14 million tonnes per annum Rowghat iron ore mine project in Chhattisgarh; instead it would assign a private outsider for the job on entire mineral off take contract at a prescribed price.

Mr CS Verma chairman of SAIL confirming this to Business Line said that at a recently held pre bid conference, there were participations of more than 25 intending bidders including overseas miners.

He said that “We would request expressions of interest for the project in the first half of the next fiscal.”

The SAIL chairman said that though life of BSP's existing mine at Dalli-Rajhara, also in Chhattisgarh, had been extended by a few years, development and operation of the Rowghat project needed to commence without further delay so as to match the BSP's expansion schedule.

The delay has been caused activities and threats by ultra Leftist outfits. Mr Verma said a couple of months ago, Railway Vikash Nigam Ltd had resumed work on construction of the 90 km track from Dalli-Rajhara to Rowghat.

The Rowghat deposit's 2,029 hectare F block that was allocated to Bhillai Steel Plant of SAIL in 2009 is estimated to contain 511 million tonnes of iron ore. BSP's on going capacity expansion is dependant on this resource project. The Rowghat project envisaged no ore beneficiation plant and tailing dam at the site. The ore after crushing at the site is to be transported for beneficiation to Dalli Rajhara.

(Sourced from BL)

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