Tata Steel Mining Limited (TSML), a wholly owned subsidiary of Indian steelmaker Tata Steel, on Monday this week commenced commercial mining operations at the Sukinda chromite mine in the eastern Indian state of Odisha, a company official said on Wednesday, September 23.
“It is a significant milestone for TSML and the first step in our journey of commercial mining,” M C Thomas, managing director of TSML, said.
The three chromite mines of TSML - Sukinda, Saruabil and Kamarda - constitute the first mining leases to be converted into commercial mining leases which were auctioned after their erstwhile leases had expired on March 31 this year.
These mines were auctioned by the Odisha government and the leases have been granted for a period of 50 years.
After emerging as a successful bidder at the Odisha government-held auctions, TSML was given a vesting order in May this year. TSML has completed all steps such as upfront payments, execution of the Mine Development and Production Agreement (MDPA), and has maintained all other eligibility criteria. The Odisha government, for its part, granted the vesting order with all the clearances for two years and declared the company to be the successful bidder before formally communicating the grant order enabling the lease to be executed.