After losing all its prized iron ore blocks to frenzied bidders at Odisha’s keenly contested online auctions, Rungta Mines has sharpened focus on value addition by setting up end use plants with necessary attendant infrastructure.
The leading merchant miner has proposed to set up an iron ore beneficiation complex of 34 mn t pa at Bonai under Champua sub division in Keonjhar district in two phases with an investment of INR 975 crore. The proposed beneficiation unit is envisaged to come up in two phases at an investment of INR 975 crore, offering employment to 290 people.
In addition, Rungta Mines is also setting up a 20 mn t underground slurry pipeline originating from its beneficiation plant to feed its plants at three different locations. This project entails an investment of INR 951 crore, promising employment opportunities for 72 people.
Both the projects have been approved by the State Level Single Window Clearance Authority (SLWCA) of the Odisha government.
Earlier, in January 2020, Rungta Mines had unveiled a plan to expand the capacity of its integrated steel plant from 0.27 mnt pa to 0.9 mnt pa capacity at Kamanda village in iron ore rich Sundargarh district with a total investment of Rs 2135 crore providing additional employment of 2289 people.
Then, the same merchant miner in April 2020 committed an investment of INR 7836.9 crore to ramp up capacity of its integrated steel plant three fold from 0.9 mn t pa to 2.85 mn tpa.
Rungta Mines had also previously proposed to establish pellet complexes at Dhenkanal and Sundargarh.
The ramp-up plan got the go-ahead from the High Level Clearance Authority (HLCA), the highest body to approve investments in the state.
Alongside the steel plant expansion, Rungta Mines will also be setting up 385 Mw Captive Power Plant (CPP) and 1.69 mn t cement plant in two phases at Jharbandh in Dhenkanal district. The projects will generate employment for 4900 people.
It may be noted that Rungta Group was unable to retain any of its operative merchant mines auctioned by the Odisha government. The Group promoters lost to more aggressive bidders in the frenetic online auctions that saw premiums crossing 100 per cent. The standalone miner did not quote such steep premiums as it felt that bagging a mine at that cost would have been unsustainable for a merchant miner. Odisha had successfully auctioned 21 iron ore, manganese ore and chromite blocks who lease tenures ceased on March 31, 2020.
With most of the prized iron and manganese ore resources lost in the auctions race, Rungta Mines is now concentrating on steel making business.
Besides Rungta Mines, the SLSWCA in Odisha at its latest meeting approved a ramp up plan by Shyam Metalics & Energy Limited from 0.3 mnt pa to 1.2 mnt pa with a total investment of INR 76.92 crore, generating additional employment for 610 people. That apart, Wellman Steels Gangeya Supply Agency Private Ltd got the nod for setting up 1.8 mnt pa beneficiation Plant and 1.2 mntpa pellet plant. Both projects with an investment totalling INR 170 crore and will provide additional employment opportunities for 150 people.
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