MSPL, the Bellary based iron ore mining company, proposes to set up two iron ore beneficiation plants in Bellary district of Karnataka. Both the plants, which are likely to have 1.2 million tonne capacity each, will be set up with an estimated outlay of Rs 650 crore. The company is likely to raise funds from the financial institutions and internal accruals to finance the project.

The company has already taken approval from the state high level clearance committee for the new investment proposal and the water required for plants from Alamatti dam across Krishna river.

The company will be setting up the plants at an area spread over 500 acre at Waddarahalli and 450 acre at Nandibanda villages near Hospet. It is in the process of acquiring land from Karnataka Industrial Area Development Board for the proposed plants.

Besides, the company is expected to open a mine at P K Halli in Bellary district which it acquired from Dalmia Group. From this mine, which has an iron ore reserve of 50 million tonne, MSPL plans to extract 2.5 million tonne additional iron ore every year.