Iron ore is a major raw material required in production of Steel Products. Presently, we procure iron ore from private mines operating in the state of Odisha, with whom we have had a long term business relationship.
However, in order to achieve backward integration, reduce operating costs and to ensure uninterrupted accessibility to iron ore, we have executed a lease agreement with the government of Odisha to lease a mine located in Sirkagutta, Keonjhar district, Odisha, for 50 years. The mining operations have not yet commence, subject to regulatory clearances and approvals.
We are also in the process of procuring the allotment of an iron ore mine in Kawardha, Kabirdham district, Chhattisgarh, for a period of 50 years, subject to regulatory clearances and approvals from the government of Chhattisgarh.
The iron ore mines would be utilized to meet our iron ore requirements at our manufacturing facility in Chhattisgarh.
The Company has experience of over a decade in operating Coal Mines in Chattisgarh.
Currently, the Company is meeting its 100% coal requirement 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’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.