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ArcelorMittal to infuse Rs 2,000 cr in Odisha

Monday, 15 Jun 2020
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ArcelorMittal has pledged Rs 2,000 crore investment in Odisha. The investments are most likely to be on the iron ore mines in the state.

The company will work on the two iron ore mines -- Sagasahi and Thakurani.  Even though the company could not operate at peak capacity at Hazira plant during the COVID-19 crisis, they could still produce in Odisha and export pellets.

The mine containing high grade iron ore reserves are meant to feed the integrated steel plant at Hazira. The Odisha government had issued the letter of intent (LoI) for developing the iron ore mine. As per initial plan, 7.16 million tonne was to be extracted each year. The block is at G2 exploration stage and located in Koira sector in Sundargarh district.

The mineral concession area is spread over 139.16 ha including 20.88 ha forest land, 110.69 ha government land and the balance 7.58 ha private land. A survey of the mineral block has been done by the Geological Survey of India (GSI).

Later, AM/NS India had successfully bid for Thakurani iron mine at e-auctions of lapsing merchant mine blocks in Odisha, quoting a premium in upwards of 100 percent. The Thakurani mine straddling a lease area of 228.04 ha possesses 180 million tonne of iron ore. It has permits to mine 5.5 million tpa.

Following the Essar Steel acquisition, AM/NS owns six million tonne pellet complex at Paradip backed by 12 million tonne beneficiation plant at Dabuna (Keonjhar), both facilities in Odisha connected by a slurry pipeline.

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