Jindal Saw, an OP Jindal group company, on Tuesday said it inked a lease pact with Rajasthan government to mine iron ore for 30 years from a deposit containing an estimated 180 million tonnes of resources.
"Jindal SAW on Tuesday announced the execution of their Mining Lease Agreement with the State of Rajasthan for Iron Ore Mines in Rajasthan. The lease is for a period of 30 years," the total pipe solution company said in a statement.
The total area covered under the lease is 1,556.78 hectares and based on the initial estimates, the mines have about 180 million tonnes of reserves of various categories of iron ore, it said.
The statement added the company is setting up a beneficiation (rpt) beneficiation plant to produce about 6,000 tonnes of concentrate per day and other required infrastructure for treatment of the extracted material.
The produce will be used initially for the company's in-house requirements for production of iron pipes and subsequently the material will be used for producing value added products under the agreement.
"The Management believes that such acquisition of mines would result in significant improvement in the overall performance of the Company, over a period of time," the company said.
Jindal SAW is a part of $12 billion O.P. Jindal Group, and is the leading production hub of pipes primarily used for transportation of oil and gas.