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SAIL to appoint mine developer for its iron-ore reserves

Saturday, 19 Apr 2014
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The Steel Authority of India (SAIL) has made a decision to outsource the development of its two iron-ore mine reserves at Chiria in Jharkhand, and Rowghat in Chhattisgarh.

 

The company is planning to invest Rs 10,000 crore to develop these two mines.

 

The Chiria mine will be developed in two phases and has an estimated reserve of 1.84 billion tonne of ore. Phase-I will comprise seven million tonne, while Phase-II will comprise eight million tonne.

 

Rowghat has a reserve of 500 million tonne of ore.  SAIL will invite bids for developer-cum-operator in the first quarter of FY15.

 

The company has already received approval from the consultant, Hatch Associates of Australia, for the detailed project report of Chiria mines.

 

In the year 2009, SAIL had received environment and forest clearances to develop the mines, but the process was delayed due to some issues.

 

Apart from this, it is in the process of implementing a modernisation programme at an investment of Rs 72,000 crore.

 

Also, SAIL is planning to buy some mining assets through International Coal Ventures, a consortium of public-sector firms for buying mines abroad.

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