Cost of transportation to be reduced by INR 1,200/MT, which in turn will reduce the cost of production.
Bhubaneswar: Essar Steel has commissioned its 253 km long slurry pipeline with 12 MnT pa carrying capacity connecting the beneficiation facility at Dabuna (Keonjhar) and 6 MnT pa Pellet plant at Paradip. With this, the company has officially announced the commissioning of integrated Pellet complex in Odisha. The pipeline has been termed as world’s 3rd longest pipeline project. Commissioning of the pipeline project is crucial as it’ll reduce the raw material transportation cost and thereby would reduce the cost of production.
“With commissioning of this pipeline, our cost of transportation will be reduced by INR 1,200/MT and this in turn will reduce the cost of production,” said Mr. Firdose Vandrevala, Executive Vice President, Essar Steel India.
Mr. Rajendra Mittal, CEO, Odisha Project, Essar Steel said that the company is currently sourcing raw material (low grade Iron ore and fines) from OMC and some private miners (15:85 ratio). However, due to closure of major merchant miners, we are facing raw material scarcity and Pellet plant is currently running at only 20-25% capacity. But, we are hopeful that the mining situation will improve soon. We have also applied for long-term supply agreements with OMC.
The company has invested INR 60 billion in this integrated Pellet project and is planning to increase its capacity to 12 MnT pa within one year. The project will mainly cater to the domestic Pellet requirement, Mr. Mittal said.
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