KIOCL proposes to secure pellet conversion jobs

Kolkata: Kudremukh Iron Ore Company (KIOCL) is negotiating with NMDC, Ispat Industries, JSW and Mysore Minerals (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.

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.