Jamshedpur, Nov. 3: Iron ore from Bolani mines in Orissa would now cater to the requirements of Steel Authority of India Limited (SAIL) plants in east India.

In its latest initiative to increase hot metal production, the SAIL board of directors has cleared the expansion project of Bolani mines. The existing production capacity of the mines is 4.1 million tonnes per annum (MTPA). After expansion, the production capacity of ores would be increased to 10 MTPA.

“The iron ore produced at Bolani would be mainly routed to Durgapur Steel Plant. However, after expansion, iron ore from the mine would also be sourced to other steel plants in the eastern region,” SAIL spokesperson A.K. Singh told The Telegraph.

According to him, the company has begun work for its two major projects at Bolani and Kiriburu mines. In August, the steel major started work for enhancement of loading facilities at Bolani mines with an investment of Rs 120 crore. The expansion of Bolani would involve an investment of about Rs 400 crore.

Going in tandem with SAIL’s Rs 54,000 crore mega expansion plan, the company is developing its mines in Jharkhand and Orissa to meet its enhanced iron ore requirements for the steel plants. The raw material division of SAIL aims at producing over 30 MTPA of iron ore in next three years to meet the requirements of its plants in east India.