The Hindu Business Line : Kudremukh Iron in talks for third party pellet conversion jobs

Kolkata, July 17 Kudremukh Iron Ore Company Ltd (KIOCL) is negotiating with NMDC, Ispat Industries, JSW Ltd and Mysore Minerals Ltd (MML) to secure conversion jobs to utilise spare capacity of its pellets plant. According to the proposal, the company will receive ore from the contracted parties for conversion into pellets.

The company also plans to appoint an internationally reputed agency to prepare a detailed report on the possibility of resuming mining operations at the closed Kudremukh mine without disturbing the ecology. The process to appoint the consultant may begin in the next two months. The mine was closed in January 2006 following a Supreme Court order on environmental concerns.

KIOCL is at present sourcing only 2.5 million tonnes of ore annually from NMDC as against a pellet manufacturing capacity of 3.5 million tonnes. To utilise the excess pellet capacity, the company is looking forward to convert ore into pellet for the existing players in the sector.

“We are negotiating with a number of domestic players having interests in the mines and minerals sector and iron and steel production for conversion of up to one million tonne of iron ore to be supplied by them,” the company Chairman and Managing Director, Mr K. Ranganath, told Business Line. The company hopes to firm up the necessary contracts within the next six weeks.

Rs 100-cr investment

Meanwhile, KIOCL has firmed up plans to invest approximately Rs 100 crore in modernising the pellet plant by installing 10 filters. This will enable the company to process a wide range of ore grades. The field trial of the identified technology is scheduled to be held this month-end.

“We are now supplied ore from Kirandul in Chhattisgarh and Dhonimalai in Karnataka. Once the new technology is installed we may pick up local varieties thereby cutting down the transportation cost,” Mr Ranganath said.

The project is expected to be commissioned in September-October 2009.

Price bids for the proposed Rs 225-crore ductile iron spun pipe plant would be opened in a week’s time. KIOCL has short-listed two bidders for the turnkey project.

More Stories on : New Projects | Minerals | Mining & Quarrying | Outlook

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
VBC Ferro recommends 20%

Punj Lloyd bags $108-m order from Spanish firm

Kirloskar Oil Engines plans business rejig

‘MNC trying to scuttle deal with Daiichi Sankyo’

Gujarat NRE plans Rs 450-cr greenfield project in AP

Kudremukh Iron in talks for third party pellet conversion jobs

Maples ESM expanding overseas

Surya Roshni on expansion spree

Hatsun Agro plans subsidiary in Dubai

Milestone Capital investing Rs 450 cr in housing projects

Foster Wheeler in talks with BGR Energy for boiler manufacture