SAIL Targets Iron Ore Capacity of 58 Million Tons by 2020

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Consistent with the expansion of its steelmaking capacity, India's state-owned Steel Authority of India Limited (LSE:SAUD) (SAIL) (New Delhi) is planning to raise its iron ore production capacity to 43 million tons per annum by 2015-16. The current capacity is 28 million tons.

SAIL is India's largest steelmaker and second-largest iron ore producer after National Mineral Development Corporation (BSE:526371) (Hyderabad). By pursuing an ongoing program expansion program at the iron ore mines, the company believes it can achieve a production capacity of 58 million tons per annum by 2020. Capacity at the Kirburu mines will increase from 4.25 million to 5.5 million tons per annum. Capacity will increase at Meghataburu from 4.3 million to 6.5 million tons per annum, and at Bolani from 4.1 million to 10 million tons per annum.

SAIL will expand capacity at the Gua mine from 2.4 million to 10 million tons per annum, and at Barusa, Klata and Taldih from 3.3 million to 6.5 million tons per annum. SAIL already has received all statutory clearance for the development of the Rowghat mine, which could boost overall capacity by 12 million tons per annum when fully operative.

For related information, see November 12, 2013, article - SAIL's Upgraded Rourkela Steel Plant Registers Record Production Growth.

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