MOIL Limited, India’s largest producer of manganese ore, has awarded a ₹230 crore turnkey mining infrastructure contract to SEPC Limited for the design, construction, furnishing and equipping of the third vertical shaft at its Chikla mine in Maharashtra. The order has been awarded through a global competitive tender, with SEPC emerging as the lowest bidder.
While the contract is a significant win for SEPC, its strategic relevance lies in what it signals for MOIL’s long-term manganese ore production and supply stability.
What has been awarded
The scope of the contract covers end-to-end execution of the third vertical shaft, including engineering, civil works, installation of machinery, testing and commissioning. As disclosed, the total contract value stands at ₹230 crore, comprising a domestic scope of around ₹167.85 crore and an imported equipment component of approximately USD 36.52 lakh.
The project is being developed as a turnkey mining infrastructure package, indicating MOIL’s focus on operational readiness rather than incremental or phased execution.
Why the Chikla third shaft matters
Chikla is one of MOIL’s key underground manganese mines in Maharashtra. According to MOIL’s disclosures, the proposed third vertical shaft is planned to reach a depth of around 408 metres, enabling access to deeper ore horizons.
In underground mining, production sustainability increasingly depends on infrastructure depth and hoisting capacity. As near-surface ore gets depleted over time, new vertical shafts become critical for maintaining and scaling output.
The third shaft is expected to:
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Improve access to deeper manganese ore reserves
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Enhance material handling and hoisting efficiency
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Support mine life extension and operational continuity
Importantly, this project aligns with MOIL’s broader strategy of strengthening underground mining infrastructure across multiple mines to support future output.
Impact on manganese ore supply: timing and direction
From a market perspective, it is important to distinguish between immediate supply impact and medium-to-long-term supply implications.
Short term (near-term)
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Construction and shaft sinking phases typically do not result in immediate production gains
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The impact on manganese ore supply in the next few quarters is likely to be limited
Medium to long term
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Once commissioned, the shaft can facilitate incremental ore extraction from deeper levels
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Improved mine logistics can lead to more stable and predictable production
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Helps offset natural production decline risks in mature underground mines
Given MOIL’s dominant position in India’s manganese ore ecosystem, even incremental gains from projects like Chikla can have a meaningful stabilising effect on domestic supply, particularly for steel and ferroalloy producers.
Why this matters for the steel and ferroalloy industry
Manganese ore remains a critical input for:
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Steelmaking
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Silico-manganese and ferro-manganese production
As India’s steel capacity continues to expand, security of domestic manganese ore supply becomes increasingly important. Infrastructure investments such as vertical shafts do not just add capacity; they improve supply reliability, which is often more valuable during tight market phases.
From a market standpoint, MOIL’s continued capex into underground development reduces the risk of sudden supply disruptions and may help moderate import dependence over time.
SEPC angle: execution confidence in mining infrastructure
For SEPC Limited, the MOIL contract reinforces its presence in mining and heavy infrastructure EPC, especially in complex underground projects. Winning a PSU order through a global tender also reflects confidence in the company’s execution capabilities and technical competence.
Key project snapshot
| Parameter | Details |
|---|---|
| Client | MOIL Limited |
| Contractor | SEPC Limited |
| Location | Chikla Mine, Maharashtra |
| Project | Third Vertical Shaft |
| Contract Value | ₹230 crore |
| Scope | Design, construction, furnishing & equipping |
| Shaft Depth | ~408 metres |
| Nature | Turnkey mining infrastructure |
Metalsbuy Outlook
The award of the third vertical shaft at Chikla underscores MOIL’s long-cycle approach to sustaining manganese ore production. While the project will not immediately translate into higher output, it strengthens the foundation for medium-term supply stability and potential incremental growth.
For the manganese ore market, such infrastructure investments act as early indicators of supply confidence, particularly in an environment where steel and ferroalloy demand continues to evolve. If MOIL maintains execution momentum across similar shaft and deepening projects, domestic manganese availability is likely to remain structurally supported over the coming years.