KIOCL to set up pellet plant in Andhra.

KIOCL Ltd., a mini ratna PSU under the Union ministry of steel, plans to establish a pellet plant of one million tonne per annum (mtpa) capacity through a joint venture (JV) with Andhra Pradesh Mineral Development Corporation (APMDC) in Ananthpur district (Andhra Pradesh). The pellet plant, to cost Rs. 1000 crore, is expected to be operational in 2017.

KIOCL had already signed a memorandum of understanding (MoU) with APMDC in 2013 for the proposed plant.

'APMDC has become the first PSU to bag prospecting license (PL) over Nemalkal iron ore mines under the PSU dispensation route after the enactment of Mines and Minerals (Development & Regulation) MMDR Act, 2015. Both APMDC and KIOCL would jointly explore the mines having magnetite deposits of 40 million tonne', said Malay Chatterjee, chairman cum managing director (CMD), KIOCL Ltd.Chatterjee said, the pellet plant would cost Rs. 1000 crore, out of which the equity component is pegged at Rs. 300 crore.

'APMDC has evinced interest to pick up equity in the pellet project. It can be a 51:49 JV between KIOCL and APMDC', he said.

KIOCL currently operates four mtpa pellet plant at Mangalore (Karnataka).

BS