SAIL targets highest ever iron ore production in FY17

20 February 2017

Maharatna steel PSU Steel Authority of India Ltd (SAIL) is eyeing an iron ore production target of 19.2 million tonne by the close of this fiscal, its best ever output.

In the April-January period, captive iron ore production at SAIL owned mines touched 16.02 million tonne (mt), marking a growth of 7.1 per cent over the corresponding period of last fiscal. For the month of January alone, iron ore mines of SAIL at Meghahatuburu, Kiriburu, Gua, and Bolani have clocked a growth of 25.7 per cent, 24.7 per cent, 20.6 per cent, and 15.7 per cent respectively in the period under review.

In line with SAIL’s hot metal production enhancement, its raw material division (RMD) has been expanding the capacity of its mines. Recently, it opened new iron ore mines at Taldih in Odisha, which will help meet enhanced requirement of SAIL’s steel plants. SAIL has plans to develop fully-mechanised mines at Taldih with a capacity of 4.2 million tonne per annum (mtpa).

The mines of RMD in the eastern sector of the country primarily feed iron ore to SAIL’s steel plants at Rourkela, Durgapur, Bokaro, and Burnpur. In addition to this, the RMD meets the demand of Bhilai Steel Plant.

SAIL has committed an investment of Rs 255 crore for modernisation and capacity expansion of its flagship Bolani iron ore mines in Odisha. The capacity of Bolani mines is proposed to be augmented to 10 million tonne per annum (mtpa) by 2020 from five mtpa and this is part of SAIL’s larger plan to secure raw material supplies from its captive mines to cater to its steel capacity expansion.

The current iron ore requirement of SAIL owned steel units is 29.15 mtpa but this is expected to shot up to 39 mtpa as the steel maker eyes hot metal output of 23.46 mtpa.

Bolani mines forms the crucial captive operations of SAIL as it feeds iron ore to the plants at Rourkela, Durgapur, Bokaro and Burnpur.

Apart from Bolani, SAIL’s other two captive mines in Odisha — Barsuan and Kalta — are also undergoing capacity expansion and modernisation. Post expansion, the rated capacity of Barsuan and Kalta mines would go up to four mtpa and 2.3 mtpa respectively.

The raw material division, the mining unit of SAIL, operates seven captive iron ore mines and three flux mines concentrated in the eastern region. In addition to Odisha, SAIL runs captive mines at Dalli-Rajhara, Nandini, and Hirri in Chhattisgarh, which is under its Bhilai Steel Plant.

Source – BS