The Hindu Business Line : Captive mine to meet Usha Martin requirement

Usha Martin Ltd, producer of speciality steel and wire rope, is confident of meeting its entire requirement of iron ore from its captive mine even after the completion of its Rs 1,300-crore capacity expansion programme.

The optimising is based on the mining operation at its captive mine at Barajamada in Jharkhand. The mine, about 160 km from the company's steel plant at Jamshedpur, has reserves of high-grade iron ore suitable for both blast furnace and sponge iron units. The mine has just completed the first year of operation.

The mine's general manager, Mr S.K. Singh told a group of visiting newspersons that the ore contained about 64 per cent iron content — possibly the highest in the country. It began operations in November-December 2005, with an initial monthly production of about 10,000 tonnes. This has increased to about 60,000 tonnes and expected to double within a year. Mr Singh said production would be increased further in accordance with the company's raw material (ore) requirement for the manufacture of speciality steel and wire rope.

Mr Singh said the company's Jamshedpur plant currently requires about 5 lakh tonnes of ore per annum. In line with the expansion undertaken, captive utilisation of sized ore would increase to about 7.5 lakh tonnes, thereby requiring more than 10 lakh tonnes of mined ore. However, he said that the mine with over 15 crore tonnes reserve should last more than 25 years even with optimum utilisation.

When contacted the Joint Managing Director of Usha Martin, Dr P. Bhattacherjee told Business Line that the company's ongoing expansion programme would be completed in the next three years. The company had also finalised plans to develop a captive coalmine. A virgin coal block at Daltanganj in Jharkhand had recently been allotted. Steps were taken to obtain clearances from the forest and environment departments. Rehabilitation works for the project-affected people were progressing satisfactorily. He said the coal project would require about Rs 150 crore.

Dr Bhattacharjee said the company was considering installing a ropeway to transport iron ore from the mine to the railway siding. This eco-friendly transportation would also help save costs, he said.

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