KIOCL to invest Rs 5,000-mn in various projects

Mangalore: Kudremukh Iron Ore Company (KIOCL) is planning to invest around Rs 500 crore in various projects in the next three years. This will involve modernisation of certain units at the plant, creation of infrastructure and value-addition.

Mr K. Ranganath, Chairman and Managing Director of KIOCL, said Rs 500 crore investments will be made from the internal resources. The investments will help the company to achieve the rated capacity of 3.5 lakh tonnes per annum (ltpa) of the pellet plant at Mangalore.

Giving the break-up of investments, he said the company has decided to go in for the installation of 10 horizontal pressure filters at the pellet plant in a phased manner in place of 19 vertical vacuum filters. This project will cost around Rs 100 crore. “We have planned to induct them in stages so that production does not hamper during the installation,” he said. The company, which produced 1.9 million tonnes of pellets during 2007-08, is planning to produce 2.5 million tonnes during the current fiscal.

The company is planning to set up ductile iron spun pipe (DISP) plant at the blast furnace unit in New Mangalore at an estimated cost of Rs 225 crore, to produce one ltpa. This value-added product (DISP) has got good demand, Mr Ranganath said. Two parties have been found qualifying contractors amongst those responded to the global tender. The process to award the work order is going on, and the construction schedule is 20 months from the date of award of contract, he said.

The company will spend another Rs 100 crore for the creation of infrastructure in the form of a railway siding from Thokur on Konkan Railway route to blast furnace unit in New Mangalore.

This siding would help the company to supply iron ore directly to the plant. Konkan Railway Corporation Ltd, which is doing a feasibility study on project, is likely to submit the report by September 15, he said.

Asked about the capacity expansion of the plant at New Mangalore, he said the company can think of expanding the capacity to 5 million tonnes per annum after the completion of the above-said projects in 2011-12.

The capacity of the pig iron plant will also be increased from 2 ltpa to 3 ltpa then. In the first quarter of the current fiscal, KIOCL crossed a profit of Rs 70 crore. 'We hope to end the financial year with a profit of Rs 250 crore (Rs 150 crore),' he said.

The Union Ministry of Mines and the Karnataka Commerce and Industries Department have allotted 116.55 hectares of land at Chikkanayakana Halli in Tumkur district for iron ore mining to the company on a 30-year lease. Part of the equipment and manpower will be shifted from Kudremukh to take up mining at a new location.

The company will open an office at Chikkanayakana Halli in 10 days, he added.