In recent reports, Essar Steel, one of the largest steelmaker has win Ghoraburhani Sagasahi iron ore block via e-auction. The steelmaker has qualified all the technical and financial bid rounds for first Odisha’s mine auction.
On 02 Mar’16, all the 7 qualified bidders who have participate in the mineral block auction for Odisha mine, participated for finacial bid round. Those were JSW Steel, Bhushan Power, Bhushan Steel, Vizag Steel, Tata Steel, JSPL, JSW Steel and Essar Steel. Among all, Essar Steel wins the iron ore block. First round of technical bid held on 11 Feb’16.
Mr. Deepak Mohanty, Director of Mines, Odisha declined to comment on the name of the successful bidder.“The financial bidding for the iron ore block has been completed. The name of the successful bidder would be disclosed on Friday after government approval”, he said.The state government would issue a ‘Letter of Intent’ to the successful bidder upon payment of first installment of the upfront payment. The state government and the preferred bidder would enter into a mine development cum production agreement.
However, SteelMint tried to reach company officials but officials were unavailable for confirmation of the same.
The iron ore mine is very closely located to Essar’s beneficiation plant at Dabuna. The ore from Ghoraburhani-Sagasahi mine has an iron content of 62-63%. It will be able to service at least 50% of Essar’s iron ore requirement for 12 MnT pa of pellet production at the Paradip Port,Odisha. The mine will be leased to Essar Steel for a period of 50 years.
Essar Steel beneficiation plant at Dabuna supplies iron ore slurry to the pellet plant at Paradip through a 253 km slurry pipeline. It currently buys iron ore fines for beneficiation from merchant miners in Keonjhar district.
Ghoraburhani Sagasahi iron ore block is situated in the Koira mining circle of Odisha’s Sundergarh district and is spread across 90.62 Hectre mineralized area and it has estimated total deposit of total resource- 99.59 MnT. The mining block is at G2 exploration stage i.e. 50-60% explored.
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