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KIOCL in expansion mode

Tuesday, 03 Jun 2014
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KIOCL is looking forward to augmenting its pellet capacity through a series of JVs with other firms in Karnataka, Seemandhra and Odisha.

The company intends to increase the capacity from the present 3.5 million tonne to about 14 million tonne. At present, it is expanding only its Mangalore pellet plant from 3.3 million tpa to 4.3 million tpa.

It has inked a pact with NMDC for operation and maintenance of the latter’s 1.2 million tonne pellet plant, coming up at Donimalai, in Karnakata. The project, estimated to cost Rs 900 crore, is expected to be operational by August 2014. The agreement between KIOCL and NMDC has been approved by the board of NMDC recently.

KIOCL is also planning to enter into a JV with SAIL to set up a pellet plant, of 1.2 million tonne capacity, at Rourkela, with an investment of Rs 1,200 crore.

The company has also approached the Odisha government to set up another pellet plant in collaboration with Odisha Mining Corporation (OMC). The proposed unit with 1.2 million tpa capacity will entail an investment of Rs 1,000 crore.

Recently, it entered into an agreement with NMDC and Rashtriya Ispat Nigam (RINL) for development of a six million tpa pellet plant at Vishakhapatnam, in Seemandhra. The project is estimated to cost Rs 3,500 crore.

Moreover, KIOCL is also planning to set up ore beneficiation and pelletisation plants of 1.2 million capacity each, in Ananthapur district of Seemandhra, after completion of a techno-feasibility study on the project.

If all these above projects fructify, the pelletisation capacity of KIOCL will shoot up to 14 million tonne by 2016.

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