Tata Steel has firmed up plans to raise annual mining capacity of its Khandabandh iron ore mines in the eastern state of Odisha. The steel maker has received the go-ahead from the State Pollution Control Board.
The Khandabandh iron ore mines have a present capacity to mine one million tonne annually. But, Tata Steel has lined up INR 2400 crore investment to scale up the mining capacity to five million tonnes. The consent to operate granted by the pollution watchdog has provisions for Tata Steel to take mining capacity up to eight million tonnes.
Tata Steel is now trying to achieve the ramp up at Khandabandh before the Kalinganagar steel project reaches its optimal capacity of eight million tonnes. The Khandabandh mines would meet exclusively the Kalinganagar’s raw material requirement. Other mines held by Tata Steel such as Noamundi in Jharkhand and Joda East in Odisha would also supply iron ore to the greenfield project.
After full ramp up, Tata Steel’s Kalinganagar project’s iron ore need is pegged at 13.6 million tonnes per annum. Construction activity on the Kalinganagar steel mill is expected to start by April or May this year. From zero date, Tata Steel would take four years to commission the expansion. The ramp-up is estimated to cost Rs 23,500 crore.
Tata Steel also aims to participate at the upcoming auctions of iron ore blocks in Odisha. It has earlier participated in auctions of three blocks but failed to emerge as the successful bidder.
Tata Steel’s mine-wise iron ore production
| FY | Joda East (Odisha) | Noamundi (Jharkhand) | Katamati (Odisha) | Khandbandh (Odisha) | Total |
| FY14 (Total: 17.7 MnT) | 8.3 | 8.2 | 0.2 | 0.7 | 17.4 |
| FY15 (Total: 13.7 MnT) | 7.8 | 5.5 | 0.4 | 0.1 | 13.7 |
| FY16 (Total: 16.4 MnT) | 8.3 | 7.3 | 0.1 | 0.8 | 16.4 |
| FY17 (Total: 21.3 MnT) | 9.2 | 9.4 | 1.3 | 1.4 | 21.3 |
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