New Delhi: The Steel Authority of India Ltd (SAIL) and Kudremukh Iron Ore Company Ltd—the two companies owned by the steel ministry—plan to invest Rs400 crore each in a new partnership company to exploit three iron-ore mines in Orissa. The initial production target has been fixed in the range of four and five million tonnes of ore a year.
The new company has not been named yet, but mining is expected to begin by 2011, said an official close to developing the business plans for iron-ore company Kudremukh.
“At present, we are undertaking an environment impact study in the mines,” said a senior official who did not want to be named. Kudremukh has been exploring other business avenues since a court order banned its mining operations in the Western Ghats.