NMDC to Start Commercial Pellet Production in Karnataka Soon

National Mineral Development Corporation (NMDC) is all set to begin commercial pellet production in Karnataka plant soon. The pellet plant was expected to begin commercial pellet production in Q3 FY16 but owing to technical faults in the trial run the commercial production was delayed. But now it seems that it is not too far to commence pellet production.

A company official shared with SteelMint that it is expected for the plant to start commercial production by Jul’16.

NMDC has a pellet plant with an installed capacity of 1.2 MnT pa at Donimalai in Karnataka as a part of its beneficiation programme. Apart from this, it has also set up a beneficiation plant of 1.8 MnT pa in Karnataka.

Low grade iron ore fines procured from NMDC’s Donimalai mines will undergo beneficiation which will feed the pellet plant to produce pellets of grade Fe 65%.

The BF grade pellets manufactured will be of size ranging from 6-16 mm with silica content less than 3% and alumina content less than 2%. Pellet dispatches are envisaged by road from pellet plant. However, the pellet maker has kept provision for discussion of dispatch by rail for interested customers.

NMDC procures 36,000 MT low grade fines in recent e-auction

In the recent Karnataka iron ore e-auction conducted on 22 Jun’16, NMDC procured 36,000 MT low grade fines (Fe 58.5%). The procured iron ore fines of NMDC’s Donimalai mines were base priced at INR 1,505/MT (basic). The bids remained flat INR 1,505/MT (basic).

Pellet availability in southern India to increase further

With NMDC’s pellet plant commissioning commercial production southern India’s pellet capacity has touched 27.5 MnT in FY16.

List of southern India based pellet plants

Source: SteelMint Research