SAIL to award 30-year deal to ACB arm

SAIL to award 30-year deal to ACB arm

Steel Authority of India Ltd is planning to present a 30-year contract to an arm of ACB India. The deal is to mine, develop and operate its 14 million tonne per year Rowghat iron-ore mine in Chhattisgarh.

Quoting an official familiar with the development, a report in Moneycontrol News said, “the Gurgaon-based company, which will get a fee of around Rs 400 for every tonne of iron-ore mined, beat the likes of Jaiprakash Associates, Lanco Infratech, NCC and Adani Mining to get the prestigious deal.”

At Rs 400 per tonne, SAIL’s annual payout will be Rs 560 crore. The iron-ore from the open-cast mine will feed the steelmaker’s Bhilai steel plant which is undergoing expansion. The development of Rowghat is in line with Bhilai expansion, it said.

The mining, it is learnt, is planned to be carried out in two phases. Phase I will involve development of Block A, Tarhur and Anjrel and in phase II it is proposed to develop four blocks viz Raodongri, Korgaon, Khargaon and Takrel.

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