RINL signs MoU with MECL for exploration of iron ore, coal

Kolkata: Rashtriya Ispat Nigam Ltd. (RINL), which runs the Vizag steel plant, has entered into a MoU with Mineral Exploration Corporation Ltd. ( MECL) for exploration of iron ore, coal and other minerals. RINL which lacks captive iron ore mines, has been aggressively pursuing its strategy for raw material security in the last few years. While it has been scouting for mineral assets and has made mining applications in several states, it received allotment of an iron ore block in Bhilwara from the government of Rajasthan only last month. The company said it also hopes to receive allotment of another block in Rajasthan and few more in Andhra Pradesh and Jharkhand.

The MoU will help RINL utilise MECL's expertise for detailed exploration of these blocks and get into iron ore mining for the first time. Incidentally, RINL already operates captive mines in minerals like limestone, dolomite and manganese. Additionally, the MoU also envisages detailed exploration for thermal & coking coal blocks that RINL hopes will will be allocate dto it in the near future. MECL's services would also be useful for further exploration of RINL's existing mines including those of limestone, dolomite, manganese, quartzite. The MoU was signed on Wednesday by A V Hariharan, DGM (Projects)-Mines on behalf of RINL and S K Sarkar, MECL's head of business development.

The state-owned steel major recorded a 14% growth in finished steel production during Q1 of FY14 and also reported a 7% improvement in generation of captive power during the period. RINL also recorded a 17% rise in production of value added steels, its best Q1 performance so far. Incidentally, value added steels accounted for 80% of RINL's total saleable steel production during the quarter under review. RINL also said it had registered a growth of 13% in Q1 sales this year, in the face of poor market conditions.

A special drive taken by the company helped in achieving sales of 5.5 lakh tonne matching the sales of corresponding period last year. Sale of special steels out of total saleable steels stood at 82% during the quarter, compared to 77% in the corresponding period last year. The company said its focus on rural marketing network has helped in enhancing the number of rural dealers to over 600 at present.