Indian state-owned steelmaker Steel Authority of India limited (SAIL) has entered into a long-term agreement with Kalinga Commercial Corporation limited (KCCL) to develop and operate the Rowghat iron ore block with a planned capacity of 14 million tonnes per annum, the company said in a statement on Monday, December 22.
28-year contract to strengthen security of iron ore supply
Under the agreement KCCL will act as the mine developer operator (MDO) responsible for the integrated development, infrastructure and production of the Rowghat block. The contract is for a period of 28 years, including an initial three-year construction phase, during which the mine will be fully developed and ready for commercial operation.
The project is expected to significantly improve the security of iron ore supply for SAIL's integrated steel mills, maintaining stable production levels and ensuring long-term sustainability of raw materials for the state-owned steel company.
The SAIL-KCCL collaboration is said to be a collaboration will accelerate the commissioning of the Rowghat mines, increase domestic iron ore production and strengthen SAIL's self-sufficiency in raw material supply, which remains a key element of the company's long-term growth and sustainability strategy.
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