OP Jindal Group subsidiary Jindal SAW will mine iron ore from a deposit in Rajasthan, India, that is estimated to contain 180 million tons of iron ore reserves.
Jindal Saw signed a mining lease agreement with the state government to obtain a 15.6 million square metre area for 30 years.
The company is building a beneficiation plant to produce around 6,000t of concentrate a day.
The iron ore will be used primarily to produce pipes.