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Essar Steel receives letter of intent to develop iron ore block in Odisha

Monday, 25 April 2016 14:52:54 (GMT+3)   |   Istanbul
       
Gujarat, India-based steelmaker Essar Steel has announced that it has received a letter of intent from the government of the eastern Indian state of Odisha to develop the Ghoraburhani-Sagasahi iron ore mine, which Essar Steel won via e-auction last month. The mine is estimated to have 99.59 million mt of reserves. Once developed, the mine will cater to 50 percent of Essar Steel India’s annual iron ore/fines requirement at its Paradip pellet facility.
 
The company currently operates a 6 milion mt pelletization plant at Paradip, which is supported by a 12-million mt iron ore beneficiation plant at Dabuna, Odisha, with an iron ore slurry pipeline.
 
Essar Steel stated that it has doubled its production in India since November 2015, and is currently operating at 70 percent capacity utilization. The company is set to achieve a capacity utilization of 80-85 percent in the next financial year.

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