Companies

KIOCL to expand in non-Chinese markets

Our Bureau Mangaluru | Updated on October 27, 2021

T Saminathan, CMD, KIOCL   -  The Hindu

Inks pact with Glencore International AG

KIOCL Ltd (formerly Kudremukh Iron Ore Company Ltd) wants to focus on non-Chinese markets in its efforts to expand the market for iron ore pellets, according to T Saminathan, Chairman and Managing Director.

In this regard, KIOCL Ltd and Glencore International AG (GIAG) have signed a non-binding memorandum of understanding (MoU). Under this, KIOCL Ltd will supply iron ore pellets to GIAG for further sale by GIAG in South Korean, European and non-Chinese markets. The MoU shall be valid for one year.

Saminathan, who was in Mangaluru on Wednesday, told BusinessLine that market in China was dull. “We can’t expect much from the Chinese market. We are trying to concentrate on other markets for supply of iron ore pellets,” he said.

Stating that the MoU with GIAG is a non-binding, he said there won’t be any change in the procedural aspects. “No priority for them. They will still continue to participate in the tender and buy,” he said.

Glencore, which is an empanelled customer for KIOCL Ltd, will buy from it and sell in non-Chinese markets. He said the MoU will help KIOCL to get business from other countries.

KIOCL has been making consistent efforts to expand and develop global markets such as Brazil, Oman, Malaysia, and MENA counties, in addition to the Chinese markets.

The annual report of the company for 2020-21 said it is making all efforts to diversify its market base and minimise dependence on a few markets. During 2020-21, nearly 56 per cent of the total exports was made to markets other than China, including the Middle East, Brazil, Bahrain and Malaysia.

KIOCL Ltd, which has a pellet manufacturing unit in Mangaluru, produced 2.210 million tonnes (mt) of pellets during 2020-21 against 2.375 mt in 2019-20. It sold 2.311 mt of pellets in 2020-21 against 2.356 mt in the previous year. Of the total quantity sold, export was at 1.84 mt.

Published on October 27, 2021

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