KIOCL (Kudremukh Iron Ore Company Limited) – a state-owned company is to set up pellet plant in Ukkanagaram, Visakhapatnam, Andhra Pradesh. The plant has been approved with techno economic feasibility for establishment of 2 MnT iron ore pellet plant in an area allotted by RINL in 75 acres of land. The plant is expected to be commissioned by 2021.
The iron ore fines to the plant will be supplied from the mines situated in Bellary district, Karnataka.
Pellets manufactured by KIOCL will be used by Vizag Steel plant (RINL) which is currently sourcing pellets from KIOCL’s Mangalore pellet plant (3.5 MnT pa) apart from NMDC’s Bailadila plant and Odisha mines. The company supplied 0.3 MnT of pellet to RINL in CY’17, the new pellet plant in Vizag will enhance sourcing of RINL from KIOCL and will benefit RINL by around INR 2000/MT in freight cost.
In Jan’18, KIOCL had signed MoU with Rashtriya Ispat Nigam Limited (RINL), for setting up pellet plant in Vishakhapatnam. The company will supply pellet to RINL from its new pellet plant in Vizag, as part of its raw material requirement for its blast furnace.
The new pellet plant will enhance KIOCL pellet capacity from 3.5 MnT pellets to 5.5 MnT pellet p.a.
KIOCL performance in Q1 FY19–
KIOCL recorded enhanced pellet sales at 0.53 MnT for Q1 FY’19. Out of the total sales, the company exported 0.39 MnT of pellets while sold the remaining 0.14 MnT of pellets in the domestic market.
The pellet production by the company recorded at 0.44 MnT in Q1 FY’19 as against the laid target of 0.46 MnT for the quarter.
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