State owned KIOCL, a leading producer and exporter of iron pellets, had floated an EoI (Expression of Interest) to import iron ore from off shore sources and export back DR grade pellets.
The company has invited bids from off-shore suppliers for supply of iron ore fines or concentrate over a period of 1 year.
The company is to soon receive a iron ore import shipment from Anglo American, a private miner in Brazil. This is the trial shipment of EoI for ascertaining the suitability of the ore for manufacture of pellets before entering into a Long Term Agreement (LTA).
The shipment carries 72,500 MT high grade iron ore (Fe 67%) and is expected to reach Mangalore Port by the end of this week i.e. 19 Sept’15. The company will export back pellets to Iran by the end of October.
On successful completion of trial shipment, a LTA with the price linked to mutually acceptable international index would be considered for appropriate quantity and period between both the parties.
In line with trial shipment from Brazil, more shipments from Brazil as well Iran are yet to arrive in coming term after finalization of LTA for a period of over 1 year.
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