By IANS
Ranchi : The Jharkhand government has asked Steel Authority of India Ltd (SAIL) to provide details of its iron ore requirements from the Chiria mines in the state. The government wants to allot a part of the Chiria mines to ArcelorMittal.
ArcelorMittal requires 600 million tonnes of iron ore in the next 30 years for a 12-million tonne steel plant it wants to set up in the state.
The state government and SAIL are fighting a legal battle in Jharkhand High Court for the past two years over possession of the Chiria mines, located in West Singhbhum district.
The government wants a share in the mines but SAIL is unwilling, arguing that it will use the reserves for expansion of its steel plants and to set up new ones.
“The central government wants the entire Chiria mines to be given to SAIL and an out-of-court settlement should be made for it. The state government does not agree,” said a government official.
“The state government has written to the central ministry of mines to disclose details of the requirement of iron ore from Chiria mines,” he added.
“According to our calculations, SAIL would require nearly 800 million tonnes of iron ore for the next 30 years if their expansion plans are taken into consideration,” he pointed out.
Chiria mines have proven reserves of 1.4 billion tonnes of iron ore.
ArcellorMittal, the Lakshmi Mittal-owned company, has signed a memorandum of understanding with the state government in 2005 to set up a 12-million tonne steel plant.