ArcelorMittal India Private Limited (AMIPL) the impeding company of ArcelorMittal Nippon Steel India has initiated mining operations at Thakurani iron mine in Keonjhar district, Odisha.
With around 179 million tonnes of reserve in the Thakurani block, it is anticipated that there will be a vital contribution to ArcelorMittal Nippon Steel India (AM/NS India)’s long-term raw material.
According to their official statement, the block has an annual capacity of 5.5 million tonnes which can be ascended to 8 million tonne and its mineral reserves are expected to rise once a detailed examination is performed.
AM/NS India is also a joint venture between ArcelorMittal and Nippon Steel. A Mine Development and Production agreement have been signed by AMIPL with executed lease deed with the Odisha government. It will also acquire all the rights, approvals, authorizations, and licenses.
This year in February, the AMIPL was selected as a preferred bidder for the Thakurani Iron Mine license. With the following auction led by the Odisha government, AMIPL agreed to pay 107.55% premium per tonne including other royalty and duties assuring stable revenue supplement to the state.
Dilip Oommen, CEO, AM/NS India said, “The ore produced at Thakurani will feed AM/NS India’s steel manufacturing facilities and support our long-term ambition to significantly grow our production capacity in India with a secure, integrated supply chain. Over time, we plan to connect Thakurani to our plants in Odisha through a slurry pipeline, which ensures both a cost-effective and environmentally friendly mode of mineral logistics. We recognize our responsibility to the local communities around the mine and are committed to safe, sustainable operations to earn their trust. ”
Thakurani was the first mining lease deed executed in Keonjhar district. “The ore produced at Thakurani will feed AM/NS India’s steel manufacturing facilities and support our long-term ambitions to significantly grow our production capacity in India with a secure, integrated supply chain,”
Article Written by Dikhya Mohanty
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