New Delhi: Rashtriya Ispat Nigam's (RINL) has been allotted three iron ore mines by the Andhra Pradesh government, putting to an end its long wait for captive mines.
Prospecting work on these three mines, spread over 2,500 hectares each at Guduru in Warangal and at Bayyaram in Khammam and of 342 hectares located at Bheemadevarapalli in Karimnagar district, could only be started following clearance from the Union Mines Ministry. Reserves on these mines are not known.
The state-run firm, which has been operating its lone 3.6 million tonnes per annum Vizag steel plant since inception in 1990 without any captive mine, plans to invest Rs 1,000 crore for developing these mines, it said in a statement.
"There is no scientific exploration taken up by any of the government agencies in these allotted mining areas. The exploration work will be taken up shortly to assess quantity and quality of iron ore available in the allotted areas," RINL Chairman and Managing Director A P Chaudhary said.
"RINL would be investing around Rs 1,000 crore for the development of the mines. This would create employment for around 1,000 people, both direct and indirect," he added.
RINL had applied for 29 mines, both for coal and iron ore, across the country, since 2006. Allotment of three mines by the Andhra Pradesh government is its maiden success.
Choudhary said allotment of the mines would strengthen RINL's expansion plans to become a 20 mtpa plant, the largest plant at single location. Presently, it has 3.6 mtpa capacity.
Work on increasing it to take it to six mtpa is nearing completion.
First Published: Thursday, April 18, 2013, 19:33