ArcelorMittal’s Chairman & Chief executive officer Lakshmi Mittal announced an investment of INR 2000 crore in Odisha, primarily for developing the two iron ore mines. Some of the planned investment will also go into ramp up of the pellet complex at Paradip.
Mittal in a video conference with Odisha Chief Minister Naveen Patnaik said the INR 2000 crore investment plan is already on and they will work on the two mines – Sagasahi and Thakurani.
Post-acquisition of Essar Steel via the insolvency resolution route, ArcelorMittal Nippon Steel India Ltd or AM/NS India has two mines in its leasehold. One is the Ghoraburhani-Sagasahi block with 99.59 mn t of iron ore deposits. It was the first iron ore mine to be auctioned in Odisha. Essar Steel had bagged the mine and had even won the Letter of Intent to develop it with an initial capacity of 7.16 mn t per annum. Endowed with high grade reserves, the mine is supposed to feed the integrated steel mill at Hazira. The mineral concession area is spread over 139.16 hectares (ha) including 20.88 ha forest land, 110.69 ha government land and the balance 7.58 ha private land. Survey of the mineral block has been done by the Geological Survey of India (GSI).
The other iron ore block- Thakurani was bagged by AM/NS India at keenly contested online auctions in the state. AM/NS quoted a steep premium of 107 per cent to bag this mine. It was one of the 19 lapsing iron ore blocks under the leasehold of merchant producers put to electronic auctions by the Odisha government. Occupying a lease area of 228.04 hectares, the mine block has 180 million tonne of iron ore and has approvals to extract 5.5 mn t each year.
Mittal admitted that in Odisha, they could run the pellet complex in Odisha and export during Covid crisis when they were unable to operate their Hazira plant at full rated capacity. He applauded the state Chief Minister for his adept handling of Covid pandemic and transparency in conduct of mineral auctions.
The mineral concession area is spread over 139.16 hectares (ha) including 20.88 ha forest land, 110.69 ha government land and the balance 7.58 ha private land. Survey of the mineral block has been done by the Geological Survey of India (GSI).
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