According to the company, the Thakurani block, with estimated reserves of around 179 million tonnes, will make a valuable contribution to AM/NS India's long-term raw material requirements.
AM/NS India is a joint venture between ArcelorMittal and Nippon Steel.
"The block has annual production capacity of 5.5 million tonnes, which can be scaled up to 8 million tonnes and its mineral reserves are expected to increase once detailed exploration is complete. AMIPL subsequently signed a Mine Development and Production agreement, executed a lease deed with the state government and has since acquired all valid rights, approvals, clearances and licenses," the company said in a statement.
In February, the AMIPL was selected preferred bidder for the Thakurani iron ore mine license following an auction process conducted by the Odisha government, in which AMIPL agreed to pay a 107.55 per cent premium per tonne, as well as other royalty and duties, ensuring strong revenue contribution to the state.
"The ore produced at Thakurani will feed AM/NS India's steel manufacturing facilities and support our long-term ambition to significantly grow our production capacity in India with a secure, integrated supply chain. Over time, our plan is to connect Thakurani to our plants in Odisha through a slurry pipeline, which ensures both a cost effective and environmentally friendly mode of mineral logistics," Dilip Oommen, CEO, AM/NS India was quoted as saying in the statement.
"We recognise our responsibility to the local communities around the mine and are committed to safe, sustainable operations to earn their trust. "