In a spot after its mining operations were suspended, Kudremukh
Iron Ore Company (KIOCL), a public sector undertaking , is exploring
opportunities to partner state-owned miners and steel makers
for setting up four new pellet and beneficiation plants in India in an attempt
to revive itself.
It is in talks with leading steel and mining companies like SAIL, RINL, Orissa
Mineral Development (OMDC) and NMDC to set up four new pellet and
beneficiation plants through separate joint ventures.
“We are in the process of drawing up plans to take up a leading position
in pellet making capacity . We will shortly enter into agreements with leading
steel and mine players to set up joint ventures for pellet making and
beneficiation,” said Malay Chatterjee , chairman and MD of HSCL who
recently took over as CMD of KIOCL.
While it is keen on a tie-up with SAIL for pellet plants in Bokaro
and Rourkela, KIOCL is also in talks with RINL and OMDC for a
three-way joint venture in which it plans to pick up 26% stake. “While we
have been hit by halt in mining, we have decided to chart our growth plans
based on value addition of ore. We need to secure the future of KIOCL and its
1,300 employees,” Chatterjee added.
Each of these pellet units is likely to be around 2 million tonne (mt) in
capacity. KIOCL is in discussions with NMDC for a 6 mt pellet unit in
Chhattisgarh. Going by the thumb rule, each 2 mt pellet unit is expected to
cost around Rs 500 crore. For beneficiation plants, 1 mt capacity would cost Rs
100 crore. With reserves of over Rs 1,500 crore, KIOCL requires financial
strength to participate in the projects.
When contacted, a SAIL official said the company is planning to set up pellet
plants at Rourkela and Bokaro. “We are yet to firm up plans but we hope to
decide on whether to go it alone or invite a partner within a month or
so,” the official said.
Tata Steel, Essar Steel and JSW Steel are among domestic
steel companies which have invested in captive pellet making units, along with
smaller ones like Godawari Power& Ispat and Adhunik Metaliks.
KIOCL, which set up the country's first pellet plant with Iranian collaboration
in the mid-70s, currently operates a state of the art 3.5 mt facility at
Mangalore by sourcing haematite ore from NMDC.
Source: The Economic Times
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