National Aluminum Company (Nalco) and Indian Rare Earths (IREL) are going to form a joint venture (JV) for setting up of a titanium slag plant. IREL is a PSU under the Department of Atomic Energy (DoAE). Titanium slag is an intermediate for making titanium sponge and titanium pigment.

The one lakh tonne capacity slag plant will be located within the premises of the Odisha Sands Complex (OSCOM), a unit of IREL, near Chhatrapur, in Odisha’s Ganjam district. The project is estimated to cost Rs 400 to 500 crore.

The project envisages value addition of ilmenite, a mineral product of IREL, to produce titanium slag. OSCOM is currently producing 2.20 lakh tonne ilmenite per annum, most of which is exported to other countries.

A memorandum of understanding (MoU) to form the JV, which was signed between the two Central PSUs about three years ago, was revalidated on 16 July 2014, with the signing of a fresh MoU.

The Nalco IREL JV will be floated only after the feasibility study of the project is completed. The details on the stake of the two PSUs in the JV will be decided at the time of floating of the venture.