Kudremukh Iron Ore Company (KIOCL), state owned enterprise, is planning to set up an iron ore pellet complex in Iran. The company intends to establish a 1.1 MnT benefication plant for ore purification and 1.1 MnT pelletising plant in Iran.
The company is looking towards these setups through a joint venture with some Iranian company in Tehran. This setting up of project will cost around USD 59 million.
Iran, a potential market for Indian pellets, has total demand of 28-29 MnT pellets every year, but could not produce enough, upon which imports around 7-8 MnT pellets every year.
KIOCL, since 1 year is in talks with Iran, to export around 2 MnT high grade pellets under “Made In India” campaign.
Recently, under Long term Agreement (LTA) between KIOCL and Middle east countries where KIOCL will import iron ore from them, make pellets and export them back, KIOCL exported its first shipment in Jan’16 . A vessel named ‘MV Aries’ carried 65,500 MT iron pellet, reached Iran last month.
In addition, KIOCL expects to do more such deals with Iran as they are capable to export around 2.5 MnT pellets in a year.
-Sourced
Leave a Reply