December 02, 2008

TATA Steel and Essar get approval for Bailadila iron ore deposits

PTI reported that TATA Steel and Essar Steel have received the approval from central government to prospect more than 250 million tonnes of iron ore in Bailadila mines in Chhattisgarh for their proposed steel projects with a total capacity of 8 million tonnes.

Mr J Mehra CEO of Essar Steel Holdings told PTI that "The Centre has accorded its approval to allow us to prospect Bailadila III deposit in Chhattisgarh. We are awaiting forest clearance from the government and will commence work only after receiving it. "We will complete prospecting within six months after we began the work.” Prospecting would be done on more than 2,000 acres of land and it is expected that the deposit has about 150 million tonnes of iron ore.

Essar Steel had signed an MoU with the Chhattisgarh government to set up a 3.2 million integrated steel plant at an estimated cost of INR 7,000 crore.

TATA Steel has also received the government's nod for prospecting the Bailadila I deposit that has an estimated reserve of up to 150 million tonnes.

TATA Steel plans to build a 5 million tonnes steel plant at Bastar in Chhattisgarh at an estimated investment of about INR 10,000 crore.