NMDC seeks Buyers for Iron Pellets from its Karnataka Plant

NMDC to start sale of Pellets by end of this year from its Karnataka plant.

National Mineral Development Corporation (NMDC), India’s largest and state owned miner which is foraying into Pellet production from the month of May’14, has recently invited expression of interest (EOI) from prospective buyers from its upcoming Pellet plant in Karnataka.

Pellet plant will start trial production in the month of May’14 and commercial production by end of this year.

In a circular released by company states –

NMDC’s Pellet plant at Donimalai is likely to commence trial operation in April/May 2014, which will be followed by commercial production of Pellets. The likely quality of Pellets and mode of dispatches are as under: 

1) Grade: Donimalai Pellet plant is designed to produce Blast Furnace grade Pellets by Beneficiating slimes and Iron ore fines.

The following properties are as per the design basis:

2) Mode of Dispatches: Pellet dispatches are envisaged by road from Pellet plant. However, if any customer is interested in dispatch by rail, the same can be discussed. 

3) Prospective customers, who are willing to purchase Pellets from Donimalai Pellet plant, may apply on their letter head to Jt. GM (Commercial) on and before 30 May, 2014.

Current Pellet Capacities in Karnataka

There will be some relief for Sponge iron manufacturers in Karnataka as availability of Pellets will increase with NMDC’s upcoming plant. Currently, state owns an installed capacity of around 17.7 MnT, out of which 9.2 MnT is owned by JSW Steels, 3.5 MnT by KIOCL, 2.4 by BMM Ispat, 1.2 MnT by MSPL (Baldota Group), 0.8 MnT by X-India and 0.6 MnT by Janki Corp.

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