ArcelorMittal's iron ore mining project to be considered by green panel: report

Days after approving long-pending Posco's steel project, the Environment Ministry has called a meeting of its top advisory body this week to consider giving go-ahead to iron ore mining project of ArcelorMittal's $12-billion steel plant in Jharkhand, according to a PTI source.

"The Forest Advisory Committee (FAC) of the Environment Ministry will be meeting on Thursday and Friday for granting Stage-I (in-principle) forest clearance to ArcelotMittal's iron ore mining project in Karampada forest reserve in Jharkhand," the highly-placed source said.

After FAC's recommendation, the proposal will be sent for final approval from Environment Minister M Veerappa Moily. A clearance to the project will pave the way for ArcelorMittal going for prospecting of iron ore in the mine.

Last week, Mr Moily had approved grant of environment clearance to Posco's $12-billion project with conditions.

ArcelorMittal's plans to construct mega steel plants in India have not been successful so far. Last year, it had exited from a similar $12-billion project in Odisha, while things have not been moving fast in Jharkhand as well. Many of its employees have also quit in recent times for want of work.

In Jharkhand, ArcelorMittal has been struggling to construct the mega steel plant of 12 MTPA capacity since 2005, when the project was first announced, due to multiple issues, including problems in acquiring land and regulatory delays. 

This had led to company changing the steel plant site in the state and dividing it into two phases of 6 MTPA each at two different places - Torpa block in Khunti district and Kamdara block in Gumla district. Both the phases have again been sub-divided into two stages of 3 MTPA each.

The source said that "iron ore from the Karampada mines, for which diversion of over 200 hectares of forest land is required, will be meeting requirements of the first stage (3 MTPA) of first phase".

"The company will be required to meet several milestones for grant of final (Stage-II) clearance."

The iron ore mine, estimated to have mineable reserve of 26.62 million tonnes per annum, was awarded to ArcelorMittal in 2008. The company has proposed to mine about 5-MTPA iron ore for meeting its captive requirements and will be incurring about Rs 200 crore on its development.

ArcelorMittal has already applied for environment clearance for the iron ore mining project and preparation of Environment Impact Assessment (EIA) is underway. It has also acquired 270 hectares of land, out of required 500 hectares.     

However, the company could face some issues in the FAC meeting as its mining site is part of the core area of Singhbhum elephant reserve, the source said, adding that a scheme for wildlife protection has also been prepared and no activity of elephants have been witnessed in the project area.