September 9: The requirement of coking coal by SAIL would rise by more than 52% and that of iron ore by 67% by 2012-13 from the current levels, a top official of the company told ISMW on September 9.
SAIL is implementing its growth plan to enhance hot metal production capacity to 23.46 mtpa by 2012-13 from the present level of around 14.89 mtpa with an investment of around Rs 72,000 crore.
"Post-expansion, the company's iron ore requirement will rise to about 40 mtpa from the present level of 24 mtpa, while that of coking coal will rise to about 21 mtpa from 13.8 mpta at present," SAIL chairman, C.S. Verma, said in an interview to ISMW.
In order to meet enhanced requirement of iron ore, production capacity of existing mines at Gua, Bolani, Kiriburu, Meghahatuburu and Barsua is being expanded and new mines are planned to be developed at Rowghat, Chiria and Taldih, Verma said.
He said iron ore production capacity of the company will be enhanced to meet the expanded requirement in the next three to four years' time. In order to beneficiate and utilise low grade iron ore fines and slimes, process has been initiated for installation of a beneficiation plant and 4 mtpa capacity pellet plant at Gua, he added.
Commenting on coking coal, Verma said about 30% of current requirement of 13.8 mt is met from indigenous sources and the remaining 70% comes through imports.
"In order to augment domestic coking coal availability, SAIL is developing new captive coking coal blocks at Tasra, Sitanala and Begunia. We have also formed a joint venture company, S&T Mining Pvt Ltd, with Tata Steel for acquisition and development of mineral deposits, including coal blocks," he said.
The company is also looking at opportunities for development as well as entering into partnership with CIL and other strategic partners for acquisition / development of new coal blocks, he said.
"In order to further enhance indigenous coking / thermal coal production, we have identified some coking coal and thermal coal blocks and requested the ministry of steel (MoS) for allocation of these blocks under government dispensation route. While the above initiatives will ease coking coal availability to some extent, SAIL will continue to depend on imported sources to meet its major coking coal requirements," Verma said.
Source: India Steel Market Watch