The Hindu Business Line : SAIL to set up iron ore beneficiation plant

STEEL Authority of India Ltd (SAIL) is setting up an iron ore beneficiation plant and along with it a pellet production unit at the captive mines of Bhilai Steel Plant in collaboration with a private party.

Both these two units are likely to be grouped into one composite industrial unit and it would be located near the Hitkasa slime pond next to the Dalli Iron Mines in Chhattisgarh. The private player would be asked to set up the whole unit.

For this project, SAIL would be offering the land and water to the private partner and the two would have a special agreement. Sources said that the infrastructure would be set up by the private player but it would cater only to SAIL's needs. Accordingly, it would be paid off on a `cost conversion basis'.

Capacity of the proposed pellet plant has been pegged at 0.5 million tonnes per annum. It would be producing only blast furnace grade pellet. SAIL has already sought expressions of interest (EOI) from the interested parties.

The project would also take care of the huge quantity of slime that had been collected at the Hitkasa slime pond over the years. Slime is waste material generated while extracting iron from the iron ore. It is sludgy with high water volume and low iron content.

For Bhilai Steel Plant, the project has two positives. First, it would take care of slime as getting rid of it is a major problem. Second, the iron ore that has been wasted over the years as slime would be extracted and used for steel manufacturing.

At present, more than 10.7 million tonnes of slime had accumulated at the Hitkasa slime pond. Moreover, the daily ore washing operations at Bhilai Steel Plant generate about 0.78 million each year. "These low grade iron slimes are required to be converted into pellets after beneficiation at the mines", sources said.

When asked about the approximate cost of setting up this composite industrial unit, sources in SAIL preferred not to comment. "It would be unethical to spell out the cost because the bidders are currently finalising their bids," sources said.

Bhilai Steel Plant has also advertised EOI for setting up a cement plant in collaboration with a private company. The SAIL board has planned a similar cement plant at the Bokaro Steel Plant too. Sources said that for Bhilai there are three interested parties.

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