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Sunday, June 5, 2011

SAIL to set up 4 iron ore pellet plants

Sunday, 05 Jun 2011

BL reported that Steel Authority of India Limited will set up four pellet plants over the next two to three years to utilize fines generated by its mines.

The company would set up a 4 million tonne per annum pellet plant each in the Gua mine in Jharkhand and the Bolani mine in Orissa, a 1.5 million tonne per annum plant in the Dalli Rajhara mine in Bhilai and a 2 million tonne per annum pellet plant near the Bokaro Steel Plant.

Mr GS Prasad executive director Centre for Engineering and Technology told Business Line that the use of pellets is aimed at increasing blast furnace productivity by 25% at its plants.

Mr Prasad said that “Three of the four pellet plants would be set up at pitheads, thereby saving on the cost of transportation as well as on environmental issues. The fourth one would be close to Bokaro Steel Plant. The pellet plants would entail a total investment of INR 3,600 crore. Close to 50% of the total investment would be funded through SAIL's internal accruals.”

Mr Prasad said that "The pellet plant in the Gua mine is in an advanced stage and will be operational by the end of this year or early next year. The approximate investment in the plant is about INR 1,200 crore."

He said that "The pellets from these plants will replace about 75 to 8% of the total iron ore requirement of the blast furnace in SAIL's existing steel plants and about 15% at the upcoming plants of Indian Iron and Steel Company, Rourkela Steel Plant and Bhilai."

The use of pellets would enhance the productivity of its blast furnaces to 2.25 tonne cubic meter per day. SAIL currently uses the sintering route for iron ore lumps.
(sourced Thehindubusinessline)

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