Govt says no move to transfer Chiria leases to Mittal Steel

Govt says no move to transfer Chiria leases to Mittal Steel
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First Published: Thu, Apr 24 2008. 03 32 PM IST
Updated: Thu, Apr 24 2008. 03 32 PM IST
PTI
New Delhi: The government today said there is no move to transfer lease of parts of Chiria mines to Mittal Steel as state-run steel giant SAIL would require all the leases of the mines to fulfill its own iron ore requirement in the long term.
“There is no proposal to transfer lease of some parts of the Chiria mines to Mittal Steel. SAIL is not in a position to share resources of Chiria mines as iron ore resources with SAIL are not sufficient to meet its long-term requirements,” Minister of State for Steel Jitin Prasada told the Lok Sabha in a written reply to a query.
Following the Jharkhand government’s decision to reject the renewal of three mining leases of Steel Authority of India Ltd (SAIL), the matter was now pending with the courts and the Steel Ministry has been attempting to have it resolved out of court, the Minister said.
Chiria has iron ore reserves of approximately 1,850 million tonnes. The six mining leases of the said mines were alloted to erstwhile Indian Iron and Steel Company Ltd (IISCO) and following its merger with SAIL, these leases have passed on to the latter.
Of the six leases, three are under deemed extension while the application to renew the remaining three leases were rejected by the state.
SAIL is envisaging a hot metal production of 26 million tonnes by 2010-11 and 50 million tonnes by 2019-20 and as a result it would require iron ore of about 5,700 million tonnes. However the availability of ore reserves currently with SAIL is only 3,400 million tonnes, the Minister said.
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First Published: Thu, Apr 24 2008. 03 32 PM IST