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Kohinoor Mandal

Kolkata , June 13

NATIONAL Mineral Development Corporation Ltd (NMDC), the Central PSU, has floated a global expression of interest (EoI) seeking a 50:50 joint venture partner for its proposed pig iron plant in Chattisgarh.

The initial capacity of the proposed pig iron plant has been fixed at 0.3 million tonnes per annum (mtpa), with scope for initial scaling up to 0.9 mtpa and subsequently to 1.5 mtpa. NMDC, the nation's largest mining company, has decided to seek effective forward integration to utilise the slime that is generated at its iron ore mines.

"During wet processing of iron ore, slime containing iron content gets generated in the two mines of NMDC at Bailadila. Approximately 16.41 million tonnes of slime are already available in the tailing dams and stacks of desilted slime from the tailing dams at the two mines," said NMDC sources.

In addition, approximately 1.5 million tonnes of slime could be generated by NMDC every year at the current production levels in these two mines.

In an effort to "gainfully utilise the slime," NMDC wants to convert this into hot metal by using Romelt technology.

Moreover, there is an acute shortage of pig iron and foundries in eastern India are queuing up for this input before the major pig iron manufacturers.

For the proposed plant, NMDC has already acquired approximately 1,000 acres at Nagamar in Bastar district of Chattisgarh.

Out of the total land, 784 acres would be used for the plant and the rest for township.

According to the EoI floated by NMDC, the partner would run the plant on a BOOT (build, own operate, transfer) basis.

However, the time period for running of the unit has not been fixed. NDMC sources said that it would be on "mutually agreed terms".

The EoI also categorically states that the partner would hold 50 per cent and the rest would be held by NMDC. A special purpose vehicle company might be floated for this plant.

NMDC would be selling the slime from its Bailadila mines to the joint venture company.

However, the price of the by-product has not been finalised, and would vary according to market forces.

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