SAIL is on expansion drive as it plans to invest INR 700 billion in mines and steel plants.
With the expansion of its steel-making capacity, state-owned SAIL plans to raise the Iron ore production capacity to 43 MnT pa by FY15-FY16 from the existing 28 MnT pa.
The country’s largest steel maker is also the second-largest Iron ore producer after NMDC. SAIL believes that with the ongoing and proposed expansion at the mines, it would be able to achieve 58 MnT pa Iron ore production by 2020.
It generally takes 1.6 MT Iron ore to produce one MT of steel.
SAIL plans to raise capacity of its Kiriburu mines to 5.5 MnT pa from 4.25 MnT pa now. Also, there are plans to raise production capacity at Meghataburu and Bolani mines to 6.5 MnT pa and 10 MnT pa from 4.3 MnT pa and 4.1 MnT pa respectively.
SAIL plans to raise its Gua mine’s production capacity to 10 MnT pa from 2.4 MnT pa now. It has proposed to raise capacity of its Barsua, Kalta and Taldih mines to 6.5 MnT pa from 3.3 MnT pa.
The major boost in Iron ore production might come from the Rowghat mine, where the company plans to produce 12 MnT pa Iron ore. SAIL has already received all statutory clearances for the mine to develop. The company gets all its Iron ore needs from captive sources. SAIL is in the process of investing INR 700 billion on its mines and steel plants.
“This will not only enhance SAIL’s contribution to nation building but will put SAIL among the top steel companies globally”, said CS Verma, Chairman of SAIL. He was outlining the company’s ambitious plans to shareholders at the company’s 41st Annual General Meeting recently.