Home » RINL to invest Rs 25 bn on iron ore project

RINL to invest Rs 25 bn on iron ore project

RINL to invest Rs 25 bn on iron ore project
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State-run steel maker RINL plans to set up an iron ore beneficiation plant and a 2 million tonne pellet plant in Bhilwara, Rajasthan at a cost of Rs 2,500 crore.

Through the proposed beneficiation plant, the company would make value addition of the iron ore mined from the block awarded to it by the Rajasthan government recently at Bhilwara. The value added output would be used at RINL’s Vizag steel plant.

It may be recalled that the Rajasthan government recently alloted a large iron ore block at Bhilwara to the firm following the clearance given by the union mines ministry.

RINL expects the reserves, spread over some 950 hectare (or roughly around 2,300 acre), to contain some 270 million tonne of low-grade magnetite ore.

It will be the first captive iron ore reserve for the steel major which is expanding capacity to 11 million tonne in phases.

RINL received a letter of allocation to RINL for the iron ore block at Bhilwara recently. In order to assess the reserves, the firm would begin scientific exploration work at the site and it plans to bring in the latest technology to beneficiate the ore.

The new reserve will be hugely beneficial to RINL, which is the only state-owned steel company without access to captive iron ore and coal, key steel making inputs.

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