TATA STEEL NEWS

September 29, 2016,

Tata Steel plans second phase expansion of Kalinganagar plant

Tata Steel Ltd is planning to initiate second phase expansion at Kalinganagar plant in Odisha to double
its capacity to six million tonne per annum (mtpa), but has no proposal to set up another greenfield steel
plant in immediate future.

Sometime in the next six months a proposal will be sent to our board for its approval to start
the second phase work at Kalinganagar, while the focus now is to achieve full three mtpa
capacity in first phase fast, Tata Steel managing director (India and south-east Asia) T.V.
Narendran said.
He also said the Kalinganagar plant, set up at an investment of over Rs.25,000 crore, is likely to
reach break-even by the end of this financial year.
After achieving the first phase rated capacity of three mtpa, second phase expansion can be
taken up, Narendran said.
However, the steel maker has no plan to set up a third greenfield steel plant in the country in
the near future, and would rather concentrate on raising capacities of its existing plants at
Jamshedpur and Kalinganagar, Narendran said.
Noting that the Jamshedpur plants present capacity stands at 10 mtpa, he said its capacity
would go up to 11 mtpa as an approval has been obtained to add one million tonne more.
Thus, both Jamshedpur and Kalinganagar would churn out up to 17 mtpa post expansion.
Tata Steel, which has 2,000 acre of land in Kalinganagar, is already in the process of getting
another 1,000 acre, Narendran said, adding that with 3,000 acre of land, the newly set up steel
plant would even be in a position to raise capacity up to 15-16 mtpa in a phased manner.
Despite challenges before the steel sector both at home and abroad, expansion ventures would
continue to raise steel-making capacity in India as demand in the country is projected to rise by
5-6%, he said.
Referring to raw materials, he said while Kalinganagar plant is iron ore self-sufficient, the steel
maker at times procures iron ore from Odisha Mining Corp. Ltd, whose mine is barely 20-30km
from Kalinganagar.
Price of iron ore is not much different from the cost involved in mining and the company opts
for either, depending on economies.

He said Tata Steel also intends to participate in next round of auction of iron ore mines as it
seeks to expand.
While 65% of the coking coal requirements are met through imports, the rest 35% is drawn
from Tatas own mines, Narendran said, adding the steel maker would continue to import
keeping in mind the expansion plans and future requirements.
Regarding export of products from Kalinganagar, Narendran said soon after commencing
commercial production, the new unit has already started export of Ferroshots and hot-rolled
coils.
Tata Steels Jamshedpur plant is exporting to south-east Asian countries and Kalinganagar unit
will also export products manufactured by it to these countries, he said.
Earlier this month, Tata Steel flagged off its first consignment of hot-rolled steel export rake to
Nepal from Kalinganagar.
On the question of minimum import price, Narendran said it is helpful in giving the industry
some respite against cheap imports and the industry appreciates this support from the
government.
But, the prices in the country are determined by demand-supply scenario.
The whole issue, he said, needs to be treated in a holistic and comprehensive manner.
On the projects at Gopalpur, Narendran said that the ferro-chrome plant being constructed at
the site and is expected to be commissioned in November, while work on special economic
zones is also gaining pace.
MINING September 27, 2016

Less than half of Indias functional mines qualify for star rating
Only around 700 mines have qualified for the star rating which is aimed at promoting sustainable
development practices, including scientific and efficient mining.

Of around 3,844 operational mining leases in the country, 1,800 are functional. Work in rest of
the mines have been stalled due to issues such as legal problems and renewals.
The five-star rating system, designed by the Indian Bureau of Mines (IBM), is aimed at building a
compliance mechanism for mining lease holders who need to follow all environmental
safeguards. It means recognising good performers in the sector while encouraging all operators
to strive for excellence. In future, star rankings will also come in handy for obtaining faster
green clearances.

Only 700 mines will be entitled for star rating for the reporting year 2015-16 as rest of the
mines were operational for less than six months (180 days) because of various reasons, said
R.K. Sinha, controller general, IBM.
This comes in the backdrop of the National Democratic Alliance (NDA) governments plan to
increase the share of mining sector in the countrys gross domestic product (GDP) by one
percentage point over the next three to four years. Currently, mining contributes around 22.5% to Indias GDP with the government projecting a GDP growth of 7-7.75% for the current
financial year.
The mines which were operational for less than six months are that of iron ore, bauxite,
limestone and others. The rating was to initially cover major mineral deposits and operational
leases spanning more than 180 days for the reporting year.
Because of the poor market conditions, many iron ore and limestone mines remained closed,
due to which they have not qualified for the star rating, Sinha said, adding that next year the
number of mines is likely to increase as many mines are stuck due to environment and forest
clearances. Also, in many cases, the lease has not been extended by the states.
The rating system also targets to address socioeconomic issues such as resettlement and
rehabilitation, local community engagement, welfare programmes and final mine closure.
Queries emailed to the mines ministry spokesperson on 23 September remained unanswered.
The ratings award ranges from one to five stars to the leasees, depending on their efforts
towards meeting the targets of the framework. Recently, the Noamundi iron ore mine of Tata
Steel Ltd, located in West Singhbhum, Jharkhand, was awarded five stars.
A senior mines ministry official, requesting anonymity, said the process of making fresh Mineral
Conservation and Development Rules, 2016 is on, after which miners will be given three years
time to operate mines with a mandatory four-star rating.
Experts, however, think that star rating cannot work until regulatory framework is there at the
state and central level.
Star rating of mines is basically a non-starter. Also, it does not provide for any kind of
incentives to miners. Capacity of state directorates needs to be increased to monitor these
mines, said S. Vijay Kumar, former mines secretary.
IBM has launched a portal for online filling of the template for star rating of mines, which will
be done on the basis of self-evaluation by miners. After this is done, its vetting will be done by
IBM. The online portal has been developed by IBM in association with Hyderabad-based
National Institute of Smart Government.

Tata Steels Joda Mine receives Pollution Control Appreciation Award

JAMSHEDPUR September 14, 2016
Tata Steels Joda East Iron Mine located in the Keonjhar district of Odisha received the
Pollution Control Appreciation Award for the year 2016 in the category of Mines from the
State Pollution Control Board of Odisha.
The award was received by Ashwini Prasad Mohanty, Resident Executive, Tata Steel,
Bhubaneswar, M R Rath, Head Equipment Maintenance, Joda East Iron Mine, Priyanka
Upadhyay, Manager, Environment at Joda, Utsav Kashyap, Senior Manager, Environment at
Noamundi from Suresh Chandra Mohapatra, IAS, Principal Secretary, Forest and Environment
Department, Government of Odisha in the presence of R Balakrishnan, IAS, Additional Chief
Secretary to Government of Odishacum-Development Commissionercum-Chairman, State
Pollution control Board, Odisha and Debidutta Biswal, IFS, Special Secretary, Forest and
Environment Department, Government of Odisha-cum-Member Secretary, State Pollution
Control Board, Odisha on the occasion of 33rd Foundation Day ceremony of State Pollution
Control Board of Odisha at Bhubaneswar on September 14.
This award was conferred in recognition of the effective pollution control measures and
adoption of sound environmental management practices by Tata Steel at Joda East Iron Mine.
Pankaj Satija, GM (OMQ), Tata Steel expressed his happiness and pride on receiving the award.
He said, We are honoured to have been recognized for our efforts towards conserving
minerals and protecting environment. The company is adopting scientific and efficient mining
practices for a sustainable future. Tata Steel is always committed to adopting the best practices
in mining with inclusive approach that ensures minimal impact on the environment and the
community.

Awards galore for Tata Steel Iron Ore Mines

JAMSHEDPUR September 2, 2016
The OMQ Division of Tata Steel bagged the Best Overall Excellence in CSR award in the
category of National Awards for Excellence in CSR and Sustainability and the Best Green
Organisation of the Year by the Noamundi Iron Mine in the category of National Awards for
Excellence in Green & Waste in the World CSR Day organised by the National CSR Leadership
Congress & Awards.
On behalf of Tata Steel, the award was received by Divyanshu Srivastava, Sr Manager
(Improvement), Tata Steel, OMQ Division and Utsav Kashyap, Sr Manager (Environment), Tata
Steel, OMQ Division on September 1, 2016 at Bangalore.

The award is a testimony to the initiatives taken by Noamundi in particular and OMQ division
on social and environmental fronts. Afforestation done in hill-1 and hill-2 is a case study for
researchers interested in reclamation and rehabilitation.
Rainwater harvesting done in mining area is a big step towards water conservation.
Engagement with IUCN has helped Tata Steel to implement comprehensive biodiversity
management plans.
Government of India recently introduced the Sustainable Development Framework and has
undertaken a system of rating for the mining leases.
As part of this initiative and the assessment of compliance with the said framework, the
Noamundi Iron Mine of Tata Steel has been adjudged as the 5 Star rated mining lease holder in
the country.
Expressing happiness on receiving the award, Pankaj Satija, GM (OMQ), Tata Steel said: We are
committed to responsible mining with a framework of sustainability to contribute positively on
triple bottom line i.e. social, environmental and financial.

SGAT calls for integrated development of Daitari-Bamanipal-Sukinda

valley mining and industrial area
September 11, 2016
Sukinda: Nickel could be the next engine of growth in Sukinda region in Jajpur district given the
abundance of overburden from chromite mines in the area which could be the source of the
metal.
Many such interesting pieces of information were shared by experts at workshop on Integrated
Development of Daitari-Bamanipal-Sukinda Valley Mining and Industrial Area organized by
Society of Geoscientists and Allied Technologists (SGAT) at Sukinda Chromite Mine of Tata
Steel.
Speaking on the occasion Steel and Mines minister Prafulla Kumar Mallik said Sukinda Valley,
besides containing over 90 percent of the total reserve of chromite in the country and
accounting for over 90 percent of total production and holding economic concentration of
nickel and platinum group of metals, is undoubtedly countrys most strategic region and holds
tremendous prospects of massive development on all fronts.
Sukinda MLA Pritiranjan Gharai opined at the workshop that local people must be given
importance in future developmental plans for the region with focus on inclusive growth.
R R Satpathy, General Manager, Operations, Ferro Alloys and Minerals Division (FAMD), Tata
Steel gave vote of thanks in the opening session. Mr Deepak Mohanty, Director of Mines,
Government of Odisha, Mr Vivek Patttnayak, retired bureaucrat also participated in the

deliberations in the closing session, where Mr Sujit K. Mohanty, General Secretary, SGAT, gave
vote of thanks.
While the morning session was chaired by Mr D B Sunara Ramam, Executive-in-Charge, FAMD,
Tata Steel, the afternoon session was chaired by Mr Sanjay Pattnaik, Vice President, FIMI &
Chairman, Odisha chapter of CII who is also Executive Director, Tata Sponge.
How mining technology, exploration, processing and beneficiation, legislative provisions and
constraints, environmental concern, social issues could be addressed in a comprehensive way
was discussed by mining experts, academia and political representatives at the day long
workshop on September 9, 2016.
Presentations were made by senior Executives of Indian Bureau of Mines, Department of Steel
& Mines, Tata Steel, IIT-Kharagpur, Odisha Mining Corporation, DMT Consulting, SRK
Consulting, NEERI, Dr R P Das of HydroMet Proc, Utkal Polyclinic among others.
Flanked by Tomka-Daitari hill range on the north and Mahagiri on the South, Sukinda valley in
the districts of Jajpur and Dhenkanal covering an area of approximately 40 sq.kms contains
about 90% of the total reserves and accounts for over 90% of total production of chromite the
country, Chromite miners overburden contain Nickel and Cobalt and there is possibility of
occurrence of PGM in the area. Sukinda valley hosts all the major chromite mines of the
country, namely, OMC, Tata Steel, B.C. Mohanty & Sons, Misrilall Mines, Balasore Alloys, IMFA
Group, Facor, IDCOL and Jindal Stainless. Overlooking the north is Daitari hill with a 150 million
tonne plus reserve of iron ore.
The recommendations of the workshop will be presented to both state and central
governments to take it forward, informed B K Mohanty.

Tata Steel wants money back after dropping Bastar steel project
Tata Steel had urged Chhattisgarh government to return the money it had deposited for
purchasing land in Bastarwhere company had planned to set up mega steel plant.
The steel major had announced that it had dropped theBastar steel project. The company had
signed an agreement with the state government in June 2005 for setting up 5.5 million tonne
per annum (Mtpa) green-field integrated steel plant in Chhattisgarhs Bastar district with an
estimated cost of Rs 19,500 crore.

An amount of Rs 72.09 crore was deposited with the authorities for acquiring private land.
Being a notified tribal area, the private party cannot acquire land in Bastar and the government
had to acquire the land before allotting it on lease. The party has to bear the acquisition cost.

In all, 1,764 hectares of land from 1,707 land holders located in 10 villages in Bastars
Lohandiguda block was marked for acquisition. The local district administration initiated the
process and disbursed compensation to 70 per cent people.

However, the administration had not taken physical possession of the land. Hence, it was not
allotted to Tata Steel. While the land allotment was getting delayed, the company lost the ironore mine in Bastar after failing to complete the prospecting work within stipulated time.

The two factors propelled Tata Steel to quit the Bastar plan. Since the company has not signed
land lease agreement and taken possession of the land, it has now requested the state
government to refund the money it had deposited for private land acquisition.

The state government had received the letter from the Tata Steel and the amount would be
refunded as per the rules, and procedures, Sunil Mishra, Managing Director
of Chhattisgarh State Industrial Development Corporation (CSIDC), said. The matter is under
consideration with the government for final decision, he added.

Officials in the industry department said since 70 per cent compensation had been disbursed,
the state government would acquire the land. The CSIDC would put it in its land bank and
would use for mega projects in future.

Plan to cut export duty hits steel sector barrier

Firms say only value-added products must go abroad, not the raw material, especially with
planned additions to capacity
September 5, 2016
In a fresh bid to claim the entire local use of iron ore, thesteel industry has protested at
governments proposed move to reduce export duty on the steel-making raw material.
In a representation to the ministries of steel and mines, Indian Steel Association (ISA),
representing the latter industry, has urged the government to continue with a 30 per
cent export duty on all grades of ore, to preserve natural resources for domestic use.

The protest came after a steel ministry official hinted at a relaxation in the duty. The
government had already cutexport duty on low-grade fines to 10 per cent early this year but
continued with a 30 per cent levy on lumps.
Iron ore as a natural resource is Indias strength and for sustenance, expand and development
of the steelindustry, it is essential to ensure adequate availability of ore, to meet (our) rising
production. Any relaxation in export duty will be detrimental to this sector, said H
Shivramkrishnan, director (commercial), Essar Steel India.
Iron ore production is substantially lagging the growth of steel production. The former,
shows steelministry data, fell at a compound annual growth rate (CAGR) of 6.5 per cent in the
past five years. Total iron ore output was 139 million tonnes in 2015-16, from 208.1 mt in 201011.
While, steel output during the period
jumped by a 4.6 per cent CAGR, despite
global economic slowdown and its
impact on infrastructural spending in
India, resulting in a sharp decline in its
consumption. National output was 89.8
mt for 2015-16, as against 68.6 mt in
2010-11.
Export should be of valued-added
products, not the raw materials. The
basic principle should be to earn
revenue which would come from
finished products, more than raw
materials. India is a steelnon-mature
country (meaning steel consumption is low but rising). So, India needs steel for domestic
consumption, unlike steel-mature countries (with no potential for consumption growth) like
Japan, America, etc. For meeting our own consumption of steel, it is important to conserve iron
ore to produce steel locally. We must focus on exports of value-added products like pellets,
finished steel etc. No developing country with a growing economy dispatches raw materials,
said Sanak Mishra, secretary general, ISA.
Merchant miners actual realisation from iron ore export is Rs 1,550 a tonne, less than half the
price of the landed cost of the imported commodity. With existing duty, Indias iron ore exports

were six mt in 2015-16, against 11.3 mt of import.

Steel mills utilisation is averaging at 76-78 per cent of the installed capacity of 120 mt. A rise in
utilisation would mean the ore requirement would rise proportionately. Also, the governments
aim is to add 180 mt of steel production capacity by 2025. This would require 290 mt of iron
ore, over and above the existing requirement of around 140 mt, including 25 mt of pellet
producers.
Since iron ore mined by captive users like Steel Authority of India and Tata Steel is not
available for exports, the entire quantity of shipment would come from merchant miners only,
resulting in a huge shortage of the raw material, said a senior industry official.

Govt removes safeguard duty from 37 steel products

Decision after steel minister met stakeholders from the industry on July 28
Subhayan Chakraborty | New Delhi August 6, 2016 Last Updated at 00:50 IST

A day after extending the minimum import price (MIP) norms on select steel products, the
government on Friday removed safeguard duty from another 37 products in the sector, such as
flat rolled and hot rolled ones.
On Thursday, the government had said it was extending the MIP for 66 steel items for two
more months, pruning the existing list which covered 173 such products. Products which had
safeguard or anti-dumping duties were removed from the new list of MIP products. The range
of prices, $341 to $752 a tonne, was not changed.

The decisions come after Steel Minister Birender Singhmet stakeholders from the industry on
July 28 and deliberated on issues affecting the sector, in the backdrop of a slowdown in the
international steel industry. The steel ministry had argued in favour of continuing the MIPs,
even batting for inclusion of additional products.
Domestic majors such as JSW, Essar Steel and Tata Steel had argued for extension of this nontariff barrier for a further six months to curb cheaper imports, mainly from China. On the other
hand, the Engineering Exports Promotion Council had strongly opposed this, citing difficulties
faced by user industries.
Smaller companies also complained of being forced to buy more expensive steel while global
prices are far less.

The commerce ministry had been in favour of reducing the number of product lines
under MIPnorms or for ending the norms altogether. This is due to mounting pressure from
other World Trade Organization members, a ministry official said under condition of anonymity.