"The Committee (CCI) has directed that after obtaining requisite information from the state government, clearances be issued by the Ministry of Environment and Forests within one month," a source said.
Sail's Gua mine, which supplies ore to its steel plants in Burnpur and Durgapur (both in West Bengal), among others, was commissioned in 1958 and has estimated reserves of 142 million tonnes.
The mine has remained closed since June 2011 in absence of environment and forest clearance, hitting the iron ore production of the state-run company hard. Sail had applied for forest clearance for 635.986 hectares of area. The state-run firm plans to invest Rs 3,000 crore to quadruple capacity to 10 mtpa and put up a four mtpa pelletisation plant.
Sail has already submitted the mine wildlife conservation plan to the Ministry of Environment and Forest. Mining was to start after getting clearances from the Jayanthi Natarajan-led Ministry.
Though the mine has a production capacity of 2.4 million tonnes per annum (mtpa), it could produce only half a million tonne in 2011-12 for want of forest and environment clearances for most part of the year.
However, this prolific mine is crucial for the company to feed its plants in country's eastern region, where Sail is investing Rs 43,000 crore to jack up its steel-making capacity by 5.44 mtpa. Sail has already spent Rs 33,000 crore into these plants.
Gua mine started operations in 1919 and was a captive mine for IISCO (till its merger into Sail in 2006) for its Burnpur plant. Due to non-availability of sinter making facility at Burnpur, the fines generated in the due course of production got accumulated in the mine and remained unutilised.
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