KIOCL, NMDC, and RINL have inked an MoU for setting up a slurry pipeline between Nagarnar and Visakhapatnam for carrying iron ore.

The project, with 13 million tpa capacity, will entail an investment of Rs 3,500 crore. The firms have inked an MoU to establish a JV in which KIOCL will hold 48 per cent stake; NMDC will hold 26 per cent; and the remaining 26 per cent will be held by RINL. The MoU will be valid for two years and the companies will have the option to extend it.

The project envisages development of the slurry pipeline to transport iron ore fines from NMDC's Bailadila mine in Nagarnar, Chhattisgarh to Visakhapatnam in Andhra Pradesh, where RINL has its steel project. The firms will develop a six million tpa pellet plant in Visakhapatnam.

NMDC will facilitate land, infrastructure, and the required approvals for the project. The companies have also agreed that NMDC will supply the input material to the JV company as per a long-term supply pact to be entered into between NMDC and the JV company.

The JV will offer finished products to KIOCL, RINL and NMDC as per their shareholding, and the firms can use them for captive consumption or free trade by the firm.