OREANDA-NEWS. February 10, 2011. Grant of forest clearance by the Ministry of Environment & Forests (MoEF) for Ajitaburu, Budhaburu and Sukri-Latur leases of Chiria iron ore mines in Jharkhand has given a boost to the continuing efforts of Steel Authority of India Limited (SAIL) towards strengthening raw material security. Development of the Chiria mines, the only compact deposit which can sustain large, mechanised mines of 30-50 million tonnes per annum (Mtpa) capacity, is vital for the existing and future expansion plans of SAIL. Over the next 50 years, around 40% of the iron ore requirement of SAIL would be met from the Chiria mines. After depletion of SAIL’s existing mines in the eastern region, the Chiria mines will be the sole source of iron ore for SAIL’s four integrated steel plants located at Bokaro, Burnpur, Durgapur and Rourkela.

Responding to the MoEF’s order for forest clearance in Chiria, SAIL Chairman Mr. C.S. Verma said: “This is a landmark in our persistent efforts to obtain security of raw material supplies. A wave of relief has swept through the company and employees are jubilant that a major concern has been settled. We will leave no stone unturned to ensure that mining in Chiria leaves no marks on the environment and that truly sustainable development of the area is possible.”

The company has already initiated actions for development of state-of-the-art mechanised mines in Chiria, initially with a capacity of 7 Mtpa. In this regard, SAIL has already appointed a consultant of global repute – M/s Hatch Associates of Australia – for preparation of a detailed project report (DPR). For efficient use of iron ore, the best beneficiation technologies available in the world today will be provided in the DPR. The draft DPR is expected to be ready soon. Mechanised mining is expected to become operational in Chiria in around three years' time. The estimated cost for development of the Chiria mines is about `5,000 crores.

In order to ensure environmental protection, SAIL has decided to carry out only mining and crushing activities in the mines. The iron ore will then be taken out of the forest area through a conveyor system. Installation of the most modern type of conveyor system, with very low level of noise and without even the need for a service road for maintenance activities, has been planned. Such a system will ensure that impact of mining on flora and fauna in the area is zero.

In addition, processing, beneficiation, tailing pond blending, stockpiling, railway sidings, infrastructure facilities, township, etc., will be kept outside the lease-hold area at a distance of over 15 kms in non-forested land. SAIL plans to install the best available beneficiation technology to ensure maximum recovery of iron value with zero discharge to any river or stream.

SAIL will also make a substantial contribution over the next five years on a wildlife and biodiversity programme in the Saranda forest area besides earmarking at least 2% of net profit for CSR activities every year.