SAIL fails to get mine developer for Rowghat

03 October 2016

Steel Authority of India Limited (SAIL) has called for a re-tender for developing and operating Rowghat iron ore in Chhattisgarh.

The move was necessitated after failing to get Mine Developer and Operator (MDO) for the Rowghat project in the tender floated earlier last year. The state-run steel maker had called for a re-tender early this month inviting proposals from miners across the globe till October 27.

The SAIL board in 2015 had given in-principle approval for engaging MDO for developing and operating open cast Rowghat iron ore mine with a capacity of 14 million tonnes per annum (mtpa). The company would sign a mining service agreement with the miner for a period of 30 years; of which 5 years would be for construction and 25 years for mining.

The pocket had been endowed with high grade of iron-ore. The SAIL was allotted deposit-F spread over 2028.79 hectares in the Naxal-infested pocket straddling between Kanker and Narayanpur districts. The deposit has an estimated iron-ore reserve of 511 million tonnes.

Since reserve in SAIL’s Dalli Rajhara mines feeding its flagship unit Bhilai Steel Plant (SAIL) had been fast depleting, Rowghat project had been crucial for the company. The delay in the commissioning of Rowghat mine would affect the expansion plan of SAIL in general and BSP that plans to enhance capacity to 7.5 mtpa from current 4.6 mtpa.

The earlier bidders however quit despite the security guarantee. The para-military forces have been deployed in the area where road and rail construction work is going on at war-foot. The SAIL officials allegedly failed to convince the bidders.

Source – BS