State-owned Rashtriya Ispat Nigam Ltd (RINL) is hopeful of getting its first captive iron ore mine shortly, almost four decades after it came into existence.
State-owned Rashtriya Ispat Nigam Ltd (RINL) is hopeful of getting its first captive iron ore mine shortly, almost four decades after it came into existence.
The company, which runs the Vizag Steel Plant, is said to be in the final stages of getting hold of a mine in Bhilwara, Rajasthan.
“The mine has about 385 million tonne of ore and the Rajasthan government has okayed the proposal. Now that the state government has approved it, getting it done from the Centre is a formality,” a senior official of RINL told DNA.
The company has been working on securing iron ore mines in order to ensure uninterrupted supply of iron ore and reduce the cost of production of steel.
However, the regulations in various states and controversies over iron ore mining have held back allotment of a captive mine so far.
Indeed, going by sources, RINL has so far submitted about 21 applications for allotment of mines in various states, but these are stuck in bureaucracy.
“We are expecting one more allotment shortly in Andhra Pradesh. There are indications of the state government allotting us iron ore mines in Bayyaram in Khammam district. However, it is too early to factor it in,” a source said.
According to the official, for every tonne of steel capacity, the company needs about 1.5 tonne of iron ore. “There is an expansion programme underway. The total capacity would be about 6.3 million tonne shortly. We will be needing about 7-9 million tonne of iron ore.”
Currently, RINL is depending on another state-owned mining company, NMDC, for all its iron ore requirements. It has long-term contracts with NMDC, which is supplying the ore from Bailadila mines.
“There is absolutely no problem for us in supply of iron ore. However, having a captive mine will always help in de-risking the company’s activity,” said the official.
Meanwhile, the proposed divestment of government stake in NMDC remains mired in problems, putting its Navratna tag at stake. The company was accorded the status on November 16, 2010 on the condition that it would get listed within two years.
But NMDC officials are confident the steel ministry will bail the company out.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}