SAIL set to award ACB arm 30-year deal for Rowghat mine

Dhirendra TripathiMoneycontrol NewsSteel Authority of India is set to award an arm of ACB India a 30-year contract to mine, develop and operate its 14 million tonne per year Rowghat iron-ore mine in Chhattisgarh, according to an official familiar with the development. The Gurgaon-based company, which will get a fee of around Rs 400 for every tonne of iron-ore mined, beat the likes of Jaiprakash Associates, Lanco Infratech, NCC and Adani Mining to get the prestigious deal.At Rs 400 per tonne, SAIL's annual payout will be Rs 560 crore. The iron-ore from the open-cast mine will feed the steelmaker’s Bhilai steel plant which is undergoing expansion. The development of Rowghat is in line with Bhilai expansion. The mine will reach its annual capacity of 14 million tonnes in the eighth year of operation including five years of construction. Once complete, Rowghat will be SAIL’s largest iron-ore mine. ACB, which has interests in coal washing and power generation, will develop and mine deposit ‘F’ of the Rowghat mine. Deposit 'F' covers 7 blocks of iron-ore and covers 2028.797 hectare. As per the terms of the contract, the ACB arm will get 5 years to develop the mine and then be able to commercially exploit it for 25 years after that. The mining lease, valid up to 2029 for now, will get further renewed to allow ACB to continue exploiting the mine. The mining is planned to be carried out in two phases. Phase I will involve development of Block A, Tarhur and Anjrel and in phase II it is proposed to develop four blocks viz Raodongri, Korgaon, Khargaon and Takrel.All the statutory clearances needed to develop and operate the mine are in place. These include approval for the mining plan, forest and environmental clearances, water and power linkages. The entire lease falls under reserve forest area and handing over of the land is in process.