Goa-based Dempo Group has bagged the mining lease for iron ore on 263.82 hectares in Zolambe, Sindhudurg of Maharashtra. ?The grant of mineral concession in Zolambe, Sindhudurg is part of the raw material supply facility to the plant of mega status (government of Maharashtra) proposed by the Sindhudurg Mining Corporation Pvt Ltd for processing low iron content,? Dempo chairman & managing director Shrinivas V Dempo told FE.
In 2006, the group had floated a special subsidiary, Sindhudurg Mining Corporation Pvt Ltd, which signed a memorandum of understanding with the Maharashtra government for Rs 1,000-crore greenfield project in the coastal Sindhudurg district. This is Dempo?s first iron ore mining venture away from Goa.
The project envisages identification and prospect of very low Fe-branded iron formations, investment in developing of mines for extraction, setting up of processing plants to produce high value concentrate for supply to major steel mills in the country and abroad. Shrinivas said operations would commence after obtaining various statutory clearances.
In the first phase the concentrate product targets is for 0.3 mt by April 2011. Subsequently in the second phase production will be scaled to 1 mt by April 2015 and in third phase by 2018 it will reach 2 mt.