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State-owned iron ore miner NMDC will soon start trial production at its Rs 572 crore pellet plant at Donimalai in Karnataka, although commercial output may begin towards the end of the year.
“The pellet plant will commence trial operation in April-May this year. We have already floated a tender seeking expression of interest from prospective buyers,” an official of the Hyderabad-based firm said.
The 1.2 million tonne per annum Donimalai plant will produce blast furnace-grade pellets with 65 per cent iron content in sizes between six and 16 mm.
NMDC has asked prospective customers to share their month-wise requirements for the current financial year and beyond by May 30.
The company is also setting up a 2 million tonne per annum pellet plant in Chhattisgarh.
Pellets are the value-added products of leftover material or low-grade iron ore and are used in making steel. They have emerged as a major product for the iron and steel industry in the country due to the scarcity of ore in some regions after mining was banned in Karnataka and Goa.
India has an estimated 60 million tonne per annum pellet production capacity. Currently, about 1 million tonne are exported.
The government levied a 5 per cent export duty on iron ore pellets in late January.
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