Steel companies with pellet plants to get priority in iron-ore mine allocation - Report

Thursday, 09 Jun 2011

ET reported that the Indian government will give priority in iron ore mine allocation to steel companies that build pellet plants, as an incentive to prompt more companies to invest in ore improving facilities.

A senior official in the mines ministry said that the government's plan is to encourage steel plants that are building pellet plants units that remove moisture from ores, clean the mineral baking it into tight little balls to be used as more efficient feed in steelmaking.

The official said that "A pelletization push will create a domestic market for iron ore fines that have either been stockpiled for decades or been exported by the million of tonnes.”

Many steelmakers and miners are already setting up plants with capacities ranging from 2 million tonnes to 12 million tonnes. SAIL will build a 4 million tonnes pellet plant each at the mine heads in Gua, and Bolangir in Orissa, and also has plans for a 2 million tonnes plant in Bhilai. Jindal Steel already has a 4.5 million tonnes pellet plant running in Barbil, Orissa, which in its second phase will expand to 10 million tonnes. Trading major Stemcor's Indian subsidiary, Brahmani River, expects its 4 million tonnes pellet plant in Orissa to become operational in a few months. Essar is setting up a 12 million tonnes plant near Paradeep. (sourced from ET)