September 07, 2008

Jharkhand recommends Ankua iron ore mines for TATA Steel

It is reported that Jharkhand government has agreed to give iron ore mines of Ankua region in Jharkhand, estimated to have reserves of about 400 million tonnes to TATA Steel to expand its existing steel plant in Jamshedpur from 5 million tonnes to 10 million tonnes.

The report cited an official source as saying that “At a recent meeting of Jharkhand state mining and geological department, the proposal of TATA Steel for prospecting license of 1,827 hectare land in Ankua mine region has been cleared and it is sent to the central mines ministry for final approval. It is expected the mines proposed for TATA Steel would meet the ore requirement of its Jamshedpur unit.”

It is noted that Jharkhand government was earlier considering offering a mining block of 905 hectare land to the TATA Steel. However, after TATA Steel’s request that it would be inadequate to meet its requirements, the state government approved the company’s revised proposal for a contiguous stretch of 1,827 hectare land in Ankua.

Once centre accords its clearance, TATA Steel could start prospecting on the mines to ascertain its true reserves and quality of ore, before seeking a mining lease later. Under the proposed new mineral policy, the prospecting company would have the first right to get mining lease for the same block.