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Blanket ban of iron ore mining in Odisha may affect SAIL’s iron ore output: Report

05 Jun 2013 Evaluate

India’s leading steel producer, Steel Authority of India’s (SAIL) captive iron ore output will get affected by the blanket ban on mining in Odisha as proposed by the M B Shah Commission. The entity is expected to lose 4 million tonne of captive iron ore output, because of this ban.

If captive mining is suspended indefinitely, SAIL will experience a shortage of iron ore, as iron ore for SAIL’s Rourkela Steel Plant (RSP) is supplied from its Bolani and Barsuan mines in Odisha. So, the company will confront a major problem in operating its steel mill in Rourkela. Though, the company has mines in the nearby state of Jharkhand and can feed RSP, transportation costs will be a major constraint.

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