State owned KIOCL Ltd, that exports iron ore pellets, is looking at setting up an ore beneficiation plant at Hospet in the iron ore-rich Bellary district. The enriched ore will be used as raw material to run its pellet plant in Mangalore.

The plant would be set up on 62 acres out of the 100 acres of land available with Tungabhadra Steel Products Limited in Hospet.

Mr K Ranganath CMD of KIOCL said that “We are looking at processing low grade hematite iron ore having Fe content of 51% to 53% with a capacity to produce close to 2 million tonnes per annum of iron ore concentrate. We will procure the low grade ore from nearby sources in Bellary Hospet region and enrich it to 63% Fe content before transporting it to our pellet plant in Mangalore.”

He said the company will procure low grade ore at a cheaper rate in Bellary district and use it for its pellet plant after enriching it at a much lower cost compared to the what it buys from NMDC.

He added that “By doing this, we will be able to reduce at least 15% to 20% of our raw material costs.”

Mr Ranganath told that “At present, we are in talks with the ministry of steels and ministry of heavy industries for the merger of TSPL with KIOCL Limited. We have appointed MN Dastur & Company Limited to prepare the Techno Economic Feasibility Report to set up the plant. Once they submit the report, we will approach our board and the steel ministry for the final approval.”

He said that “The investment for setting up the beneficiation plant would be decided based on the TEFR adding that once both the ministries give their approval the proposal would go to the Cabinet committee on economic affairs for final approval. We expect to receive all approvals within six months.”

(Sourced from BS)