One of the major reasons why SAIL was unable to consume low-grade ores was because the company was not having enough beneficiation and pelletisation capacity. Major states that will come under such captive mining
areas of SAIL include Jharkhand, Odisha, and Chhattisgarh. The order will be valid for a period of around two years.
On an annual basis, SAIL’s captive mines reportedly produce around 28 mt of iron ore. According to media reports, SAIL’s captive mines have iron ore resources of around 3,700 mt, of which a large chunk is coming from Jharkhand.