New Delhi | Union Steel Minister Jyotiraditya M Scindia on Friday inaugurated a Rs 149-crore beneficiation project of Steel Authority of India Ltd (SAIL) at Kanker in Chhattisgarh.

The minister virtually inaugurated the SAIL's Silica Reduction Plant set up at the company's Dalli iron ore mines.

In his address, Scindia said the new plant is an important milestone as it will help the steel maker utilise the low-grade ore from the Dalli mines through the beneficiation process.

Around 80 per cent of the reserves of the iron ore mine has been utilized, he said adding certain issues were coming in the utilisation of the remaining 20 per cent reserve like the Fe or iron content was below 60 per cent and silica content was as high as 10 per cent. The plant will improve the Fe content to 62-64 per cent and bring down the silica content to 2-3 per cent.

SAIL Chairman Amarendu Prakash there was a need to refine iron ore of size less than 1 mm to achieve the desired grade for effective usage in the blast furnace at the company's Bhilai Steel Plant (BSP).

The plant has been set up with an investment of around Rs 149 crore and is equipped with state-of-the-art beneficiation equipment. It will enhance the iron ore supply to BSP thereby increasing annual production from the blast furnaces, reducing coke consumption and carbon emission, he told PTI.

The company plans to set up more such projects to utilise low-grade ores, he said.

SAIL, under the Ministry of Steel, is among the top three steel producers in India with an annual capacity of around 20 MT