SAIL to spend Rs 3,000 crore to increase Gua mine capacity

Steel Authority of India (SAIL) is planning to spend around Rs 3,000 crore to increase capacity of its Gua iron ore mine in Jharkhand to 10 million tonnes per annum (mtpa) and set up a four mtpa pelletisation plant. The company will invest Rs 2,087 crore for capacity expansion of its Gua iron ore mine while Rs 865 crore to put up four mtpa pellet plant.

In 1958, Gua mine was commissioned and has 142 million tonne reserves. Though the mine has a production capacity of 2.4 million tonne a year, it could produce only half a million tonne in the last fiscal for want of forest and environment clearances for most part of the year.

On standalone basis, the company has posted a marginal rise of 3.03% in its net profit at Rs 1576.98 crore for the quarter ended March 31, 2012 as compared to Rs 1530.61 crore for the same quarter in the previous year.  Total income has increased by 12.72% at Rs 13691.97 crore for quarter under review as compared to Rs 12146.92 crore for the quarter ended March 31, 2011.