Iron ore is a major raw material required in production of Steel Products. Earlier, we were procuring iron ore from private mines operating in the state of Odisha. Now, in order to achieve backward integration, reduce operating costs and to ensure uninterrupted accessibility to iron ore, we have commenced extraction of Iron ore from Sirkaguttu Mine in Keonjhar district of Odisha. The mine has been allotted for a period of 50 years.
The Company has experience of over a decade in operating Coal Mine in Chhattisgarh.
Currently, the Company is meeting its coal requirement largely through Long Term Coal Linkages from SECL (a subsidiary of Coal India Limited).
With expansion plans in Sponge Iron and Steel making at its Integrated Steel Plant, and focus toward backward integration, the Company is prospecting to add suitable coal mines in the near future.
The company has been allotted Bhskarpara Coal Mine in Chhattisgarh having geological reserve of around 46.91 MnT of high grade coal. The company aims to operationalise the mine by 2023-24 subject to regulatory clearance.
The Company’s dependence on expensive open market sources will be substantially reduced by the uninterrupted supplies of high grade raw material from the captive mines.
Plantation of nitrogen fixers, pollution abaters, and fruit bearing plants & trees will be carried out during the life of mines for arresting dust and creation of green belts around the mines lease area.
Mines will provide employment to over 500 skilled and unskilled personnel. Roads, healthcare, education and other infrastructure created for the project will be extended to local population as well.