Business Line reported that the state owned KIOCL's long wait for captive iron ore linkage is to be over within a month. The linkage would also help the company get listed.

Mr K Ranganath chairman of KIOCL said that "I am confident that our wait for the captive mine allocation is over and we will be allocated a reserve in excess of 200 million tonnes, large enough to last for 30 to 40 years, in block 13/1 in Ramagunda. I am expecting the allocation to be over in a month's time."

He was speaking in connection with the recently concluded hearing conducted by the Karnataka government for allotment of two large ore reserves in Ramagunda and Kumaraswamy hill ranges in Bellary. The state government had received over 1,000 applications for allotment of reserves in the two blocks.

According to Mr Ranganath, the 13/1 block is large enough to accommodate more than one miner. He said that "The availability of the captive block will enhance the value of the company helping us to consider tapping the capital market for future initiatives and get listed

The company has already proposed to build an integrated steel plant in joint venture with URSIPL, a sister concern of United Telecom, in Karnataka at an estimated investment of INR 8,000 to INR 9,000 crore. The plant will have an initial capacity of 1.5 million tonnes to be expanded to 5 million tonnes.

Mr Ranganath said that "We have already approached the State Government for allocation of land."

Engaged in manufacturing pellets from iron ore, KIOCL had lost its backward linkage following closure of its mine at the iron ore rich Kudremukh in Karnataka earlier this decade, on environmental concerns. The company is currently developing a small reserve at Chikkanayakana halli.

Mr Ranganath said that "It's a very small reserve expected to last for two to three years."

(Sourced from www.thehindubusinessline.com)