While unavailability of nearly 2 billion tonnes of iron ore at Jharkhand’s Chiria mines will cripple Steel Authority of India Ltd’s (SAIL) long-term expansion plans, the PSU is taking steps to ensure that the 2010 production target of 26 million tonne is achieved. The Rs 50,000 crore state-owned steel major’s current production capacity is 14 million tonne. As a fall back option, the company is ramping up production in its mines in Gua, Kiriburu and Meghataburu in Jharkhand to 10 MT, 5.5 MT and 6 MT, respectively by 2010, while production at Bolani in Orissa is being increased to 10 MT.

“Chiria is important, especially in the long term, considering our expansion plans across all plants and reserves left in our other existing mines. However, I am not sure if the mechanised mines in Chiria will start operations by 2010. We are making arrangements to ensure we do not miss the target,” SAIL GM, Raw Material Division Gua and Manoharpur mines P C Tibrewal said.

Allocating reserves from its mines in Gua would mean that they will get exhausted earlier than planned but SAIL is banking on getting the full reserves in Chiria so that production does not suffer till 2020. “Without Chiria, our long-term plan of achieving 60 mt steel production by 2020 will be under a cloud. Our reserves in Kiriburu and Meghatuburu will not last more than 10 years and we will have a problem after that,” Tibrewal said. “Even with Chiria our reserves will probably last only 34-35 years. Beyond that we dont know.”

... contd.