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Tata Steel iron ore reserves to last for over 20 years
Ishita Ayan Dutt in Jamshedpur
 
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January 09, 2008 10:49 IST

The 28.1 million tonne Tata Steel's [Get Quote] iron ore reserves to cater to 7 million tonne of capacity over 20 year.

The world's sixth largest steelmaking group, which has been stepping up its raw material security at a frenetic pace, has 300 million tonnes of iron ore reserves in India.

The company has enough iron ore to feed 7 million tonne of capacity. Also steel plants plan for raw material cover over 30-50 year, said a Tata Steel executive.

Tata Steel's Jamshedpur unit is gearing up its capacity to double by 2010, from 5 million tonne. The capacity enhancement is being done in phases and 7 million tonne will go onstream by June 2008.

Tata Steel's iron ore units are located in Noamundi, Joda and Katamandi in Jharkhand and Orissa.

Tata Steel is now eyeing Ankua mines, which the Jharkhand government recently recommended.

"There are some clarifications from the Centre regarding Ankua, which will be sorted out soon," said the executive. The Ankua deposit allocated to Tata Steel is estimated to have reserves of around 100 million tonne.

The greenfield projects in Jharkhand, Orissa and Chhattisgarh to add 23 million tonne to its present capacity.

According to Tata Steel, Jamshedpur expansion and Orissa greenfield were likely to commissioned by 2010.

Tata Steel has also asked the Orissa government to transfer the mines allocated to its Gopalpur steel project.

Also, to ramp up the usage of iron ore resources, Tata Steel plans to set up pellet plants in all its greenfield projects.

As part of the 10 million tonne expansion project at Jamshedpur, Tata Steel will set up a 6 million tonne pellet plant.

The executive explained that with agglomeration of iron ore mines, it is possible to improve the quality of charge in blast furnaces, which would result in better utilisation of resources.

Not just in India, Tata Steel is looking for mines across the globe. Tata Steel has entered into a joint venture agreement with, a state-owned Ivory Coast mineral development company, for development of Mount Nimba Iron Ore deposits.

Tata Steel has also submitted a bid for the Western Cluster Iron Ore deposits in Liberia and is also scouting for opportunities in Brazil.

The move is part of the Tata Steel's effort to achieve a 50-60 per cent raw material security over the next 3-4 years.

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