KIOCL Ltd (formerly Kudremukh Iron Ore Company Ltd) is targetting pellet production of 2.6 MTPA (million tonnes per annum) in the next financial year.

MV Subba Rao, CMD, KIOCL Ltd, told BusinessLine that the company was expecting to match the last financial year’s pellet production of 2.327 mt, this year also.

On the plans for the next financial year, he said: “We are targeting 2.6 million tonnes for 2019-20.” The pellet production of the company stood at 0.1 million tonnes and 1.46 million tonnes in 2015-16 and 2016-17, respectively. The installed capacity in Mangaluru is 3.5 MTPA.

Modernising plant

Rao said the performance of KIOCL has been improving steadily in the last three-four years due to initiatives taken by the management with the support of the Union Steel Ministry. He said the company was in the process of upgrading the technology and logistic system of the pellet plant. It has earmarked around ₹200 crore for modernising the pellet plant in Mangaluru.

KIOCL had operated mines in the Kudremukh region of Karnataka till December 31, 2005. Later on, it made several efforts to acquire captive mines in Odisha, Andhra Pradesh and Karnataka.

Rao said the Karnataka government has already notified iron ore reserves in Ballari district. Stating that the Indian Bureau of Mines has approved the mine plans for this reserve, he said other statutory clearances are in progress.

The company will spend around ₹1,500 crore to set up mining machinery, beneficiation plant, pelletisation plant etc., once mining lease is registered in the name of KIOCL. The Ballari project will help create huge employment in the region, he added.

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