SAIL to enhance its Coal mining activities for steel production

New Delhi, Jan 21 (UNI) The public sector steel gaint Steel Authority of India Ltd (SAIL) is in the midst of implementing its corporate plan that aims to increase its steel production capacity from the current level of about 15 million tonnes (MT) to 24 MT by 2010 by substantially enhancing its coal availability by production and outsourcing.

According to offical sources, SAIL's requirement of coking coal will accordingly increase to around 22-23 MT by 2010 against present level of 15 MT.

Company's plans are on the anvil to enter into strategic investment tie-ups for coking coal blocks in the country and abroad to ensure assured supply of coking coal.

As per the plan, they are expected to envisage investment in its collieries at Tasra, Ramnagore, Chasnalla and Jitpur.

Supply of indigenous coking coal has gradually reduced. In order to meet increased coking coal requirements, SAIL is looking at opportunities for acquiring coal blocks for captive mining and entering into strategic partnership with Bharat Coking Coal Ltd (BCCL) of Coal India Ltd (CIL) to ensure availability of 8-10 Metric Tonnes Per Annum (MTPA) of indigenous coking coal.

In this context, the company has already entered into a Memorandum of Understanding (MoU) with BCCL in April'06 for funding phase-I upgradation of Moonidih Mine at 16 top seam.

Entire output of about 0.66 MTPA (ROM)/ 0.46 MTPA (washed coal) from the mine would be for the captive use of SAIL plants.

Tasra Medium Coaking Coal Block has been allocated to SAIL by Ministry of Coal for captive consumption. One small patch has been identified for start of initial mining activity. Project report is being prepared for developing the main open cast mine at Tasra.

UNI