SAIL to meet increased iron ore needs from captive sources

 Steel Authority of India is looking at meeting all its iron ore requirements from the expansion of captive sources as it ramps up the steel-making capacity to 23.46 million tonne per annum (mtpa) by 2015-16.

'Iron ore production capacity will be enhanced in next two years time which will take care for the requirement for ongoing hot metal capacity expansion of 23.46 mtpa,' official sources said.

With an investment of over Rs 10,000 crore, the mines at Gua, Bolani, Kiribaru and Meghahatuburu are being expanded to their full potential to take the company's iron ore production capacity to 42.81 mtpa by 2015-16 from 27.86 mtpa now.SAIL, which is the second largest iron ore miner in the country following NMDC, produced about 21.48 mt of the key raw material for making steel in 2012-13. As the company expands its steel-making capacity to 23.46 mtpa, its annual requirement of iron ore would also go up to 39 mtpa.

The company hopes Kiribaru mine to add 1.25 mt capacity in current month only. Meghahatuburu mine's 2.2 mt additional capacity is likely t come on stream by December. Expansion at Bolani to raise the capacity to 10 mtpa from 4.1 mtpa now is scheduled for June, 2014. The expansion of the Gua mine capacity to 10 mtpa from 2.4 mtpa now is also expected by September, 2016. Chairman C S Verma had earlier said that the company's steel making capacity would go up to 19.7 mtpa within the current fiscal.