exract from steel guru

SAIL foresees iron ore supply gap even after Chiria


It is reported that Steel Authority of India Limited, in order to fill the gap of 2.3 billion tonnes shortfall of iron ore in the future, has started looking for mines and filed for prospecting licenses for 5,330 hectares at Karampada and 3,160 hectares at Ankua for the purpose. It has also applied for mining licenses for 500 hectares at Megataburu Karampada and 2,580 hectares at Ghatkuri in Jharkhand.

As part of its strategy to feed its INR 53,000 crore expansion program and its steel mills, SAIL has estimated that it will require around 5.7 billion tonnes of iron ore over 50 years but its existing mines, including Chiria, can supply only 3.4 billion tonnes of ore, thus causing shortfall of 2.3 billion tonnes.

The report cited a senior official at the union steel ministry as saying that “If SAIL is forced to lose a part of Chiria because of political pressure or is unable to source fresh iron ore mines, it will sound the death knell for all its ambitious expansion plans.”

Jharkhand government, which had recently called for assessing real iron ore requirements of SAIL, in context of Chiria tussle, could recognize this move of SAIL to accept that SAIL’s iron ore requirements are much beyond Chiria deposits.