KOLKATA | Sept 27, 2017: Bhilai Steel Plant of the Steel Authority of India Ltd (SAIL) has signed an agreement for engagement of a Mines Developer and Operator (MDO) for development and operation of its 14 million tonne per annum (mtpa) iron ore mines at Rowghat in Chhattisgarh.

The agreement was signed on Monday, September 25, 2017 between SAIL/Bhilai Steel Plant and ACB Mining Private limited, New Delhi in the presence of CEO, Bhilai Steel Plant.

ACB Mining, the MDO, shall develop Rowghat iron ore mines on behalf of SAIL/Bhilai Steel Plant for a period of 30 years and commercial production from mines shall begin from the year 2022, a statement issued by Bhilai Steel Plant said.

Rowghat Iron Ore Project has been a crucial and important for Bhilai Steel Plant in view of iron ore security for the plant, as reserves in its existing mines are tipped to get exhausted in another 4 to 5 years. Rowghat Project was perceived 25 years back as future source for iron ore for Bhilai Steel Plant. However, the progress was hampered for some time for want of clearances from department of environment and forests. Finally, all clearances were obtained by 2009. With Bhilai Steel Plant's expansion projects poised to start operations to its envisaged capacity in a year, the plant's iron ore requirement is estimated to increase from the present level of 9 mtpa to 12 mtpa.

Developmental activities and creating infrastructure logistics such as building Rail Line network from Dalli-Rajhara to Rowghat, 95 km stretch is being implemented at the cost of Rs. 1142 crore with the help of Railways and RVNL. Construction of railway line is likely completed by 2022 for transporting iron ore produced at Rowghat mines by MDO. Other, support services such as power and water projects too would be completed in next 2 to 3 years, the statement added.

(Source: http://economictimes.indiatimes.com/)