State owned KIOCL is importing high grade iron ore from private miner Anglo American from Brazil at Mangalore Port and will export pellet.
A vessel named “MV Navious Sagittarius” carrying 72,500 MT iron ore is expected to reach Mangalore Port by 16 Sept’15. KIOCL currently operates a 3.5 MnT pa pellet plant at Mangalore.
This is the first shipment under the Long Term Agreement (LTA) between KIOCL and Middle East countries where KIOCL will import iron ore from them, make pellets and export them back.
On the other hand, KIOCL is also in talks with Iran’s Gol Gohar Mines, to import 1 MnT iron fines as an effort to regain its pellet export market share. The first shipment from Iran is expected to arrive India later this month.
Iran as the potential pellet market to India, has total DRI production of 24.3 MnT, for which it is insufficient to feed total requirement of pellets (Fe 66%) to their plants. To meet shortfall of around 8-9 MnT, Iran is compelled to import pellets. Less freight cost and transition duration attracts Iran to import pellets from India.
In line with 1st shipment from Brazil, more shipments from Brazil as well Iran are yet to arrive in coming term.
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