India: JSPL Second Pellet Plant all set to start Commercial Production

JSPL will be starting commercial production from its second Pellet plant installed at Barbil (Odisha). The company will become largest Pellet manufacturer in the state and 3rd largest in the country

Jindal Steel & Power Ltd (JSPL), having 4.5 MnT pa Pellet plant in Barbil (Odisha), is all set to start commercial production from its second Pellet plant with 4 MnT installed capacity this month.

JSPL will become the largest Pellet manufacturer in the state, until Essar steel commissions its 6 MnT plant at Paradip. Also, JSPL is now the 3rd largest Pellet producer in India after Essar and JSW Steel.

The company’s new 4 MnT pa Pellet plant in Barbil (Odisha) may take on full-fledged production by June or July 2014. It manufactures BF grade Pellets with 63.5% total Fe.

According to sources, production from first Pellet plant is likely to fall, once the new plant runs in full swing. JSPL sales Pellet in domestic and overseas market as well as captive consumption at its Raigarh (Chhattisgarh), Angul (Odisha) and DRI plant at Jindal Shaheed (Oman). It procures Iron ore fines for Pellet making from its captive & Sarda mines in Odisha.

Closure of Sarda Mines will have little Impact on Production

Recently, Thakurani Iron ore mines of the Sarda Mines, the Joda mining circle has been served to close down mining operations, following expiry of its environmental clearance. The Deputy Director of Mines, Joda circle has served the notice recently.

However, company officials mention that it will not impact JSPL production to a large extent as they have sufficient stock piled up at mines head. Thakurani may get clearance once election gets over.

Odisha is India’s largest Pellet producing state with 25.8 MnT pa installed capacity presently. Other than JSPL’s new plant, an additional capacity expansion of 8.1 MnT pa is in pipeline. 

Iron Pellet Plants expected to Start in FY15 in Odisha

Source: SteelMint Research