Essar Steel, Jindal South West and Bhushan Steel are in the race for acquiring 35 million tonne of accumulated iron ore fines worth a whopping Rs 9,500 crore at Steel Authority of India Ltd’s (SAIL’s) Gua mines in Jharkhand. The mountains of ore fines have an average iron content of 60 per cent.

SAIL will soon float a global tender to set up a 2 million tonne pellet plant in the region. The company that wins the bid will set up the plant to produce 1.4 million tonne of pellets. SAIL intends to utilise these primarily at its Bhilai steel plant.

The government-owned steel major is exploring two options to utilise these fines accumulated since 1957. One of them is to set up a pellet plant on its own and the other is to strike a barter deal with another company that will set up the plant. “We on our part will provide fines and get pellets in return in a specified ratio,” said Gua and Manoharpur Mines general manager P C Tibrewal. “We have excess iron ore fines with us right now but intend to utilise all the fines produced in our mines within the country as soon as possible.”

SAIL had floated an expression of interest (EoI) for the same in the past but did not elicit much response. But, now, given the upswing in the steel industry and the lack of captive ore reserves, companies are keen to bid. “We have evinced interest in the proposal and are waiting for further information,” an Essar Steel spokesperson said.

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