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[Ferro-Alloys.com]It is learned that India’s SAIL, the country’s second biggest maker of the alloy, will close an iron ore mine in Odisha.

The reason is to make a passage way for elephants, according to the fact that environment ministry won’t renew the company’s mining permit after a 2-year extension expires on November 10th.

The closure of that mine will cut SAIL’s iron ore output by almost 20% and cut down 2.8 million tons of its steel capacity.

Analysts said if the company buys the raw material from the market, it may increase its input costs by USD70/ton, further eroding profits.

SAIL plans to spend USD13 billion to boost steel production capacity by 60% to 21.4 million tons annually, improve products and develop mines.