SAIL chalks out plan to up production at mines

To ensure total iron ore security, the Steel Authority of India Ltd (SAIL) has chalked out a corporate plan to produce 26 million tonnes of hot metal by 2010-11, and it has embarked on a massive de-bottlenecking exercise at its mines to ramp up production.

“SAIL will need about 42 million tonnes of iron ore by 2010-11 and to meet this requirement, a de-bottlenecking exercise has been undertaken in all the mines of the raw materials division to jack up production,” said M Roy, executive director, SAIL (raw materials division).

The de-bottlenecking exercise would be done mainly through technological upgradation, he said.

Asked about the investment for the de-bottlenecking exercise, Roy said technological upgradation would not require any big investment. “It may require only a few hundred crores,” he said.

New mines
He pointed out that the company was working on both short-term (which includes de-bottlenecking) and long-term projects (which involves development of new mines) in tandem.

SAIL’s mines would produce over 30 million tonnes iron ore by 2010-11, and the Rajhara and Dalli mines of Bhilai Steel plant, that are not under SAIL’s raw materials division, would produce the remaining.

He said it was a big challenge to push up production from the current 18 million tonnes to 30 million tonnes in about four years.

Post the de-bottlenecking process the capacity of Bolani mine would go up from 4.2 mt to 10 mt, while that of Meghahatuburu would increase from 4.3 mt to 6.3 mt.

Ore security
Similarly, Kiriburu and Gua would have an increased capacity of 5.5 mt and 4 mt, while Barsua and Chiria would be 3 mt and 1.3 mt. Another one million tonnes would be produced at Kalta mine.

Asked whether SAIL would require to purchase iron ore to meet its requirement, Roy said the company was self-sufficient in this regard.

The captive mines have always ensured iron ore security and this would continue.

Roy said SAIL also planned to develop two new mines at Chiria and Taldih after 2011.

Asked whether SAIL was still facing a problem over Chiria, he said, “We are going ahead with our plans in Chiria.”

Roy said to be able to use low grade iron ore, the company has decided to set up pelletisation plants at some of its mines.

The first pelletisation plant would come up at the Gua mine for which expression of interest had been invited. The plant would be ready by 2010.

Consultants were being appointed to set up similar plants at other mines including Kiriburi, Meghahatuburu, Barsua and Bolani.