SAIL has resumed production in Barsua Iron mine (BIM) on 20th May after a gap of four years. Barsua iron mine supplies iron ore to Rourkela and Bokaro Steel Plants, besides other SAIL plants. Barsua mines has a capcity of 3.5 million tonne per annum. Production at Barsua was discontinued in May 2014 due to certain legal issues. However, on May 11, 2018, Supreme Court disposed the case in favour of SAIL paving the way for resumption of production at the mines.
Why is this important
Resumption of production at Barsua mines coincides with the relighting of 1.05 mtpa capacity blast furnace in Rourkela Steel Plant. Availability of iron ore from Barsua mines will be integral to achieve SAIL’s plan to increase production.
Stock to be impacted
SAIL (CMP Rs. 72, M Cap Rs. 29,822 crore, P/B 0.81x).