In the absence of access to quality iron ore (hematite) reserves, Rastriya Ispat Nigam Ltd (RINL) has applied for magnetite reserves in Rajasthan and Uttar Pradesh. Magnetite is a low grade iron ore which can substitute the traditional ores by use of new beneficiation technologies.
If available, this will be the first direct source of raw material for RINL. The company procures ore from NMDC and other domestic producers.
Mr P.K. Bishnoi, CMD of RINL, told
The deposits at Bhilwara are estimated by Geological Survey of India (GSI) at 1.1 billion tonnes. Lalitpur is estimated to contain around 150 million tonnes (mt).
“In Rajasthan, SAIL and another private player, are also in contention,” Mr Bishnoi said. He expected that the licence issue should be resolved within 3 to 4 months. “We have also offered Rajasthan Mineral Development Corporation a minority interest in the proposed mining venture if the licence comes our way,” the CMD said.
RINL currently does not own iron ore mine. Its subsidiary, Orissa Mineral Development Corporation, has mining rights to a deposit, estimated at 200 mt in Orissa. However, this mine at present is not operational.
RINL, which has embarked on massive and phased capacity expansion plans at Vizag Steel Plant – from 3 million tonnes per annum (mtpa) to 6.3 mtpa by the end of this fiscal followed by two other phases which would take the total to 11.5 mtpa by 2015-16, has been in negotiation for past two years with MMTC Ltd, a Union commerce ministry-administered trading outfit, for the controlling stake in Nilachal Ispat Nigam Ltd, which has access to quality iron ore (hematite – 69 per cent Fe) reserves in Orissa.
Rly axle plant
Mr Bishnoi said RINL has firmed up plans for setting up a railway axle plant at New Jalpaiguri in West Bengal at a cost of Rs 350 crore. The Railways would provide 47 acres for the plant, he added.
In Vizag, in addition to its first 4 mtpa flat steel (mainly HR coils) production facility at a cost of Rs 25,000 crore, RINL is also setting up a 4 lakh tonnes per annum seamless tube mill of larger diameter for oil and gas sector at a cost of Rs 2,000 crore.
It has also planned to set up silicon grade or electrical grade steel – CRGO of 1 lakh tonnes per annum and 2 lakh tonnes per annum CRNO – for the first time in the country at a cost of Rs 2,500 crore, Mr Bishnoi said.