India's SAIL Signs 28-Year Rowghat Iron Ore Mining Contract with Kalinga Company to Strengthen Raw Material Supply Chain

Recently, Steel Authority of India Limited (SAIL) signed a Mining Services Agreement with engineering services firm Kalinga Commercial Corporation Ltd, entrusting Kalinga with the development and operation of the Rowghat iron ore project in Chhattisgarh, which has a capacity of 14 million mt per year. The long-term contract spans 28 years, including an initial three-year construction period. Under the agreement, Kalinga will be fully responsible for mine development, infrastructure construction, and subsequent operations. The project is expected to significantly enhance SAIL’s integrated steel mills’ security, providing critical support for the steel giant’s continuous production and long-term raw material stability.

Earlier, SAIL’s Rourkela Steel Plant signed a major agreement with Adani Enterprises Limited to develop and expand the Taldih iron ore mine. This partnership also adopts a mine-developer-and-operator model and is expected to raise Taldih mine’s capacity from 2 million mt to 7 million mt per year. The project includes new plants and supporting infrastructure, scheduled for completion by the end of 2026. Mining operations are expected to begin in 2027 and continue for 25 years. Currently, under SAIL’s management, Taldih mine relies on mobile crushing and screening equipment and small earthmoving machinery for production.

SAIL is India’s third-largest producer, after NMDC and Tata Steel, operating 15 iron ore mines located in Jharkhand, Odisha, and Chhattisgarh, managed by Bokaro Steel Plant (BSL), Rourkela Steel Plant (RSP), and Bhilai Steel Plant (BSP) respectively to meet the raw material needs of all SAIL steel mills. Earlier this year, several Indian media outlets reported that the Ministry of Steel is considering establishing a dedicated mining business unit within SAIL to boost iron ore production. The move aims to support SAIL’s target of increasing steel capacity to 35 million mt per year by 2030.