Jagatsinghpur District of Orissa (10 km south of Paradip Port)
The 12 MTPA integrated steelworks will be completed in three phases of 4 MTPA each. In Phase I, hot rolled coil (2.5MT) and slab (1.5 MT) will be produced. The construction for Phase I is scheduled to be completed by 2017-18.
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Within three years after Completion of Phase I
Within three years after Completion of Phase II
As per POSCO India’s estimated requirement and the MoU signed on June 22, 2005, the Government of Orissa has assured to grant Mining Lease for 600 million tons reserves which are required for 30 years of operation, for the 12 MPTA steel plant in Paradip.
After consulting with the Government, POSCO India has applied for PL (Prospecting License) for three areas and ML (Mining Leases) for two areas in the districts of Keonjhar and Sundargarh. After obtaining grants followed by some prospecting operations, the company will identify the exact mines.
Iron Ore Requirement
20 million tons of iron ore per annum, for annual steel production of 12 million tons over 30 years
POSCO India will engage qualified Indian mining engineers and geologists for most of its key positions in developing and operating the captive mines. The company will also be able to consider introducing advanced mining technologies by utilizing capable and experienced mining consultants from India and other countries, such as Australia and Brazil.
POSCO, the parent company is an experienced organization when mining is concerned, with equity interests in world-scale coal mines and iron ore mines in Australia, Canada and Brazil. For example, it has 20 percent equity in ‘Mining Area C’ of Western Australia, which produces about 22 million tons of iron ore annually. POSCO also operates an iron ore pelletizing plant under a 50:50 partnership with CVRD in Brazil. In addition, POSCO has been involved in coal mining operations in Canada and Australia from the early 1980s. Thus, POSCO is well-acquainted with developing iron ore and coal mines.
The transportation of iron ore from the mines to the plant area will be via roads, combined with railways. Construction of railway sidings will also be taken up to ensure the stable movement of the ore to the plant site in the most economical way. The option of utilizing conveyor belts in place of roads connecting to the railway sidings is also being considered. POSCO India is in the process of evaluating different options of transportation for the movement of 20 million tons of ore per annum, for which the main criteria will be:
- Economic and environment-friendly system
- Reliability, long term stability, CAPEX and OPEX
POSCO India is working with the Government of India and the Orissa State Government to build the infrastructure required for the success of the project.
During Phase I of the project, POSCO India will construct railway sidings in the mining areas and the plant site and link it to the main railway line. This is expected to be completed by the end of 2009. The Central Government has also been carrying out the construction of railways in the Banspani-Tomka and Cuttack-Paradip sections.
In accordance with the MoU, the Government of Orissa has actively considered improving accessibility by establishing road links and developing existing local roads that connect the proposed steel plant and township zone. POSCO India will also construct access roads for efficient construction and operation.
A Captive Port will be developed at the mouth of the Jatadhari River, 10 km from Paradip, for exclusive use by POSCO India in order to secure consistent and timely movement of raw materials and products.
In the sector of power, POSCO India has plans to set up a Captive Power Plant (CPP) with an estimated capacity of 1300 MW per annum, and will install a power transmission facility to receive power from the Paradip GRIDCO substation to meet the requirements during construction period.
Water for the steel plant will be sourced from the Jobra Barrage of the Mahanadi River. The total industrial water requirement for the 12 MTPA steel plant is 3.50 cubic meters per second (cumecs).