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State-owned RINL Ltd will soon start work on developing its low-grade iron ore mines in Bhilwara district of Rajasthan. A letter of intent (LoI) has already been received from the Rajasthan government.
This will be the first captive mine for RINL (also known as Vizag Steel) that has so far sourced iron ore from NMDC. The company, however, has experience in running its own limestone, dolomite and manganese mines.
According to P. Madhusudan, Director (Finance), RINL, the mine is spread over 900 hectares and is likely to have reserves of 230 million tonnes.
“We have obtained an LoI and will start development of the mine soon,” he told Business Line on the sidelines of the AGM of the Indian Refractory Makers Association (IRMA) here on Saturday .
Currently, the company does not have plans to acquire mines overseas. RINL has a production capacity of 6 million tonnes per annum.
Further, with import-dependent raw materials, a volatile rupee will only lead to an impact on margins. “We hope turnaround will happen in the next one to two years,” he said adding that steel is a cyclical industry. “Normally, cyclical fluctuations last for five years. So, we are nearing that period where the downturn seems to be headed towards an end,” he said, adding that reduced unemployment in the US and stability in Europe were indicators towards an improved global scenario.
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