Tata Steel will spend Rs 2,000 crore to develop the Khondbond mine in Odisha, even as it gears up for an integrated commissioning of its new plant at Kalingangar. Investment in the mine, linked to the company’s raw material needs of its greenfield steel plant, will be over and above the Rs 25,000 crore it has spent on the plant, Rajiv Kumar, vice-president (operations-KPO) Kalinganagar Operations, told reporters recently.
The mine, located in Keonjhar, is expected to produce up to 5 million tonnes of iron ore, and is tipped to emerge as one of the three mines that will meet Tata Steel’s iron ore needs. The latter has been operating mines in the state’s ore-rich Barbil areas like Joda and Noamundi for several decades. It is also perhaps the first major investment in developing a large iron ore mine in the state in recent years, as the country’s mining sector stirs backs to life after the Supreme Court ban on illegal mining.