By: Ajoy K Das
12th September 2012
KOLKATA (Mining Weekly) - Indian pellet producer KIOCL Limited (formerly Kudremukh Iron Ore Company Limited) was banking on setting up pellets and benefication plants in joint ventures (JVs) with domestic mining and steel companies to revive its fortunes after failing to secure iron-ore mining leases.
KIOCL was planning four iron-ore pelletisation and beneficiation plants through separate JVs and negotiations had been initiated with Indian majors NMDC Limited, the Steel Authority of India Limited (SAIL), Orissa Mineral Development Corporation (OMDC) and steel producer Rashtriya Ispat Nigam Limited (RINL), a company official said.
The company currently operates a pellet plant through merchant purchase of iron-ore fines.
In 2006, the Supreme Court forced KIOCL to stop all mining activities in its hinterland of Kudremukh on accusations that it was violating environment laws. The company, which was founded in 1976 as an exclusive export oriented iron-ore pellet production unit, mined some 4.5-million tons a year of ore and produced 3.6-million tons of pellets for exclusive shipment to Iran.
However,, the iron-ore mining company has now been left without access to any iron-ore reserves and no raw material for its existing plant.
KIOCL was looking at an investment of about $360-million in constructing four two-million ton a year pellet plants in proximity to domestic steel mills, the official said.
There has been a sharp fall in export of iron-ore fines from the country, leading to surplus in the domestic market since Indians steel companies did not have the technology of using fines as feedstock. With the government promoting higher usage of fines than lumps by domestic steel mills, the investment strategy for more pellets plants would be beneficial for reviving the fortunes of KIOCL, the official added.
Indian exports of iron-ore fell 40% during April-June 2012 to 12.11-million tons over corresponding previous period. During 2011/12 total exports of iron-ore was recorded at 57.35-million tons.
Edited by: Esmarie Swanepoel
12th September 2012
KOLKATA (Mining Weekly) - Indian pellet producer KIOCL Limited (formerly Kudremukh Iron Ore Company Limited) was banking on setting up pellets and benefication plants in joint ventures (JVs) with domestic mining and steel companies to revive its fortunes after failing to secure iron-ore mining leases.
KIOCL was planning four iron-ore pelletisation and beneficiation plants through separate JVs and negotiations had been initiated with Indian majors NMDC Limited, the Steel Authority of India Limited (SAIL), Orissa Mineral Development Corporation (OMDC) and steel producer Rashtriya Ispat Nigam Limited (RINL), a company official said.
The company currently operates a pellet plant through merchant purchase of iron-ore fines.
In 2006, the Supreme Court forced KIOCL to stop all mining activities in its hinterland of Kudremukh on accusations that it was violating environment laws. The company, which was founded in 1976 as an exclusive export oriented iron-ore pellet production unit, mined some 4.5-million tons a year of ore and produced 3.6-million tons of pellets for exclusive shipment to Iran.
However,, the iron-ore mining company has now been left without access to any iron-ore reserves and no raw material for its existing plant.
KIOCL was looking at an investment of about $360-million in constructing four two-million ton a year pellet plants in proximity to domestic steel mills, the official said.
There has been a sharp fall in export of iron-ore fines from the country, leading to surplus in the domestic market since Indians steel companies did not have the technology of using fines as feedstock. With the government promoting higher usage of fines than lumps by domestic steel mills, the investment strategy for more pellets plants would be beneficial for reviving the fortunes of KIOCL, the official added.
Indian exports of iron-ore fell 40% during April-June 2012 to 12.11-million tons over corresponding previous period. During 2011/12 total exports of iron-ore was recorded at 57.35-million tons.
Edited by: Esmarie Swanepoel
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