In a major step toward strengthening its raw material security, Steel Authority of India Ltd (SAIL) recently signed a Mining Services Agreement (MSA) with M/s Kalinga Commercial Corporation Ltd in Bhubaneswar, for the development and operation of the 14 Mt/y Rowghat iron ore project in Chhattisgarh. The agreement marks a significant milestone in the progress of SAIL’s Rowghat mining initiative, which is one of the largest upcoming iron ore projects in central India.
The long-term contract spans 28 years, including an initial three-year construction period, during which the new Mine Developer-cum-Operator (MDO) will be responsible for the mine’s comprehensive development, infrastructure creation, and operation. The project is expected to substantially enhance the iron ore supply to SAIL’s integrated steel plants, ensuring consistent production and long-term raw material sustainability for the steel major.
The agreement was formally signed by Shri Anupam Bisht, Chief General Manager (Rowghat) on behalf of SAIL and Shri Manoj Ranjan Samal, Director (Finance) on behalf of M/s Kalinga Commercial Corporation Ltd. The collaboration is expected to accelerate the operationalisation of the Rowghat mines, boost domestic iron ore production, and strengthen SAIL’s self-reliance in raw material sourcing – a key component in the company’s long-term growth and sustainability strategy.
A year ago, SAIL’s Rourkela Steel Plant (RSP), signed a significant agreement with Adani Enterprises Ltd (AEL) for the development and expansion of the Taldih iron ore mine. The collaboration is under the MDO model, with ambitious plans to expand the Taldih mine’s production capacity from 2 Mt/y to 7 Mt/y. The project will involve the construction of new plants and supporting infrastructure, set to be completed by end 2026. Mining operations are expected to commence in 2027 and continue for the next 25 years. Currently, Taldih relies on mobile crushing and screening plants and smaller earthmoving machinery under SAIL’s management.
The Ministry of Environment, Forest and Climate Change granted approval for expanding Taldih mine’s capacity to 7 MTPA on April 28, 2023. The project includes the installation of a long-distance conveyor belt system, which will transport mined ore from Taldih to the railway siding at Barsua Valley, reducing environmental impact. The agreement encompasses the construction of modernised mining facilities and state-of-the-art infrastructure to support sustainable and efficient operations.
Earlier this year, a number of reports in Indian media stated that The Ministry of Steel is considering the formation of a dedicated mining vertical within SAIL to enhance iron ore production. This initiative aims to support SAIL’s goal of increasing its steel-making capacity to 35 Mt/y by 2030. SAIL is India’s third largest iron ore producer after NMDC and Tata Steel with a network of 15 iron ore mines in the states of Jharkhand, Odisha and Chhattisgarh, under the administrative control of BSL, RSP and BSP respectively and cater to all requirements of SAIL steel plants. SAIL also has four coal mines and three flux mines. In 2024-25, SAIL produced 33.78 Mt of iron ore, 0.59 Mt of coking coal, 0.84 Mt of thermal coal, 1.31 Mt of limestone, and 0.40 Mt of dolomite.
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