The mines ministry announced that it has allowed state-owned SAIL to offload up to 25 per cent of total iron ore produced in the previous year through open market. However, it will be subject to clearance from the respective state governments, where the mines are located, after following due procedure. It is valid for a period of 2 years, the ministry said in a statement.
The country’s largest steel maker, under the Ministry of Steel, has over 20 captive mines spread across Jharkhand, Odisha, Chhattisgarh and West Bengal.
As per the provision of section 8A(6) of the MMDRA Act 1957, the lease of 31 working iron ore mines are expiring next year on March 31, 2020, and it is expected to lead to a shortfall of 60 million tonnes (MT) of iron ore in the market, the ministry said.
It has been informed by the ministry that SAIL has capacity to enhance its iron ore production from its captive mines by 7-8 MT in 2020-21 and by 10-12 MT in 2021-22.