Essar Steel receives letter of intent from Odisha government to develop 99-million tonne iron ore block

Essar Steel has received the letter of intent from Odisha government to develop the Ghoraburhani-Sagasahi iron ore mine, which it won through e-auction last month. The mine is spread over 139.2 hectares and is estimated to have 99.59 million tonnes of reserves. Once developed, the mine will cater to 50% of Essar Steel India’s annual iron ore / fines requirement at its Paradip pellet facility.

Essar Steel currently operates a 6-milion tonne pelletisation plant at Paradip, which is supported by a 12 MTPA iron ore beneficiation plant at Dabuna (also in Odisha); the two are connected by a iron ore slurry pipeline.

Essar Steel India has doubled its production since November 2015, and is currently operating at 70% capacity utilisation. It is set to achieve a capacity utilisation of 80%-85% for in the next fiscal.