“The government has given permission to sell 70 mt of sub-grade minerals in the captive mines of SAIL,” the ministry of steel has tweeted. In order to increase evacuation from captive mines, the government has allowed SAIL
to offload in a year, up to a quantity equivalent to maximum 25 per cent of total iron ore production in the previous year. For this, the company will have to get clearance from state governments. The government expects the move will help SAIL in meeting its own requirements and also meeting the expected shortfall in domestic iron ore market.
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.