SAIL wins battle with ArcelorMittal for Chiria mines in Jharkhand
Date: 18-11-2009Steel Authority of India (SAIL) has achieved a breakthrough in the impasse over Chiria iron ore mines, with Jharkhand recognising and agreeing to renew the mining leases to meet the company’s current needs.
In the last few years, Jharkhand government’s refusal to renew the mining leases had thrown the race for Chiria wide open with global steel majors including ArcelorMittal aspiring for a slice of action in the area. SAIL has ten mining leases in the area estimated to hold two billion tonne (bt) of good quality ore, out of which four are disputed.
The state government has recently decided in-principle to renew lease on Gudaburu mines, which contain 810 million tonnes (mt) of iron ore reserves. They have also deceided to identify another 200 mt of reserves for lease renewal.
Taken together, the two reserves amounting to around one billion tonne, will go towards meeting SAIL’s current iron ore needs. Chiria mines were under the Burnpur-based Indian Iron and Steel Company (IISCO), subsequently taken over by SAIL and renamed as IISCO Steel Plant.crackcrack