Monday, March 07,
State-run KIOCL Limited, a 100% export-oriented unit under the ministry of Steel, plans to double its pellet exports to 2 million MT during 2011-12..* The move has come post Budget announcement of exemption on export duty on iron ore pellets.
The company is likely to close the current fiscal with an export of 1 million MT to its principal market, China.
“The move to exempt pellets from 15 per cent export duty was long overdue. The finance minister has recognized the value addition in making pellets. This will help increase productivity of our steel plants because use of pellets help increase the oxidation in the process of steel making. The removal of export duty will also help in converting iron ore fines into pellets,” said K Ranganath, chairman and managing director, KIOCL.
The company is looking to produce around 3 million MT. Of which, around 2 million MT will be exported to China and the balance will be sold to domestic steel mills. In the domestic market, KIOCL sells pellets to Ispat Industries.
Leave a Reply