Chhattisgarh Rowghat Iron Ore Mine Awarded 28 Year Contract By SAIL
Steel Authority of India Ltd (SAIL) has awarded a 28-year Mining Services Agreement to M/s Kalinga Commercial Corporation Ltd for the development and operation of the 14 million tonnes per year Rowghat iron ore project in Chhattisgarh. The long-term contract includes a three-year construction phase and aims to strengthen SAIL’s domestic iron ore supply, support integrated steel production, and promote sustainable mining practices in central India.
Under the agreement, Kalinga will be responsible for establishing the mine’s infrastructure, implementing modern extraction methods, and overseeing operational management once construction is completed. Industry experts note that the project is expected to significantly reduce supply volatility for SAIL’s steel plants, contributing to predictable production cycles and long-term raw material security. “Rowghat is a strategic initiative that aligns resource availability with industrial growth while incorporating responsible mining practices,” a senior mining consultant said.The Rowghat project follows SAIL’s earlier partnership with Adani Enterprises Ltd to expand the Taldih iron ore mine near Rourkela. That project, also under the Mine Developer-cum-Operator (MDO) model, aims to increase production from 2 million tonnes per year to 7 million tonnes, with operations expected to begin in 2027. A long-distance conveyor system is being installed at Taldih to transport ore efficiently to the railway siding, reducing environmental impact and improving logistical efficiency.
Recent policy discussions indicate that the Ministry of Steel is considering the creation of a dedicated mining vertical within SAIL to further boost domestic iron ore production. Such a move is seen as essential for achieving the company’s target of expanding steel-making capacity to 35 million tonnes per year by 2030. Currently, SAIL operates 15 iron ore mines across Jharkhand, Odisha, and Chhattisgarh, alongside four coal and three flux mines, supplying all its integrated steel plants. In 2024-25, the company produced nearly 34 million tonnes of iron ore, with additional outputs of coal, limestone, and dolomite.Beyond production goals, the Rowghat initiative incorporates sustainable and inclusive development principles. The contract outlines infrastructure development with reduced environmental disruption, while generating local employment and supporting regional economic growth. Analysts suggest that the project could serve as a model for low-carbon mining practices, demonstrating that large-scale industrial development can coexist with ecological responsibility.
As SAIL moves toward operationalising the Rowghat mine, the project highlights a strategic balance between resource security, industrial expansion, and sustainable practices. Its successful implementation is likely to strengthen India’s domestic steel supply chain, promote responsible mining in Chhattisgarh, and set benchmarks for future iron ore projects across the country.
