SAIL to invest Rs 2,952-cr for raising Gua mine capacity
New Delhi: Steel Authority of India (SAIL) has earmarked an investment of Rs 2,952 crore for expanding capacity of its Gua iron ore mine and setting up of beneficiation and pellet plants in Jharkhand.
"The proposal for capacity expansion and setting up of 12.5 million tonnes per annum (mtpa) beneficiation and 4 mtpa pellet plant was approved 'in-principle' by SAIL Board at a cost of Rs 2,952 crore," Steel Minister Beni Prasad Verma said in a written reply to the Lok Sabha.
SAIL proposes to increase iron ore mining capacity at the Gua mine in Jharkhand to 10 mtpa from the existing level of 2.4 mtpa.
The Minister said tender documents are also in the last lap of finalisation and SAIL is in the process of obtaining necessary clearances for the project.
"Tender for expansion of Gua mine along with setting up of beneficiation plant and pellet plant is in advances stage of finalisation. SAIL is also in the process of obtaining necessary approvals and statutory clearances for the project," Verma said.
Gua mine started operations in 1919 and was a captive mine for IISCO (till its merger into SAIL in 2006) for its Burnpur plant.
Due to non-availability of sinter making facility at Burnpur, the fines generated in the due course of production got accumulated in the mine and remained unutilised.
"After merger of IISCO and SAIL, there is no addition of fines to the dump as freshly generated fines from the mining process is being consumed in other steel plants of SAIL," he said.
"Installation of beneficiation and pellet plants will enable utilisation of fines dumped over the years," he added.