Pelletization plant to cut raw material costs by 10pct - Mr Chandra Prakash

Tuesday, 08 Nov 2011

Gallantt Metal has commissioned a pelletization plant in Karnataka in a bid of backward integration. Mr Chandra Prakash Agrawal CMD of the company told CNBC-TV18 that this plant will help reduce raw material costs by 10%.

Mr Prakash said that “A large number of clearances, including land clearances, have already been acquired. Therefore, it should be commercially operational by 2013.”

Below is an edited transcript of his interview with Reema Tendulkar and Ekta Batra.

Q - We understand this 0.3 million tonne pelletization plant which is coming up in Karnataka might be quite a kicker for the company going forward. Just take us through what sort of opportunity this would present to you and when exactly it will come on stream?

A - This is basically backward integration of our unit where we will be going in for pelletization by using iron ore resulting in a 10% reduction in our raw material prices.

Q - When will you get the clearance for this pelletization plant and also when will it be commercially operational?

A - Commercially operational somewhere in the year 2013 tentatively and a large number of clearances has already been acquired and so is the land.

(Source - CNBC-TV18)

NLMK to build pelletizing plant at Stoilensky

Saturday, 19 Feb 2011

NLMK has approved the construction of a pelletizing plant at Stoilensky, its fully owned subsidiary with a capacity of 6 million tonnes of iron ore pellets per year.

The project will encompass the construction of the pelletizing plant and the development of a number of infrastructure facilities to supply raw materials for the production of high grade pellets. A 30% increase in iron ore output as compared to 2011 level at Stoilensky operating mine is planned to ensure the required raw material supplies for the pelletizing plant.

The project is part of the Group’s strategy targeted at strengthening vertical integration and is being executed as part of the third stage of NLMK Technical Upgrade Program. Construction is expected to be completed in 2014. The plant will be able to fully cover the Company pellet requirements as early as 2015, even considering the launch of the 3.4 million tonne Blast Furnace 7 at Novolipetsk, the main production facility of the Group located in Lipetsk.

The project will be jointly executed with Siemens VAI/Outotec, a German-Finnish consortium, responsible for supplying the required equipment and technologies, as well as rendering other construction-related services.

Investments into Stoilensky operating and infrastructure facilities over 2011 to 2014 will total some RUB 39 billion.

Starting from 2015, Stoilensky average annual output of saleable iron ore will be as follows:
1. Sintering ore - 2 million tonnes
2. Iron ore concentrate - 11 million tonnes
3. Iron ore pellets - 6 million tonnes
Ensuring NLMK 100% self sufficiency in iron ore raw materials.

During the Stoilensky pellet plant construction, supplies of iron ore pellets to Novolipetsk will be made under long term contracts between NLMK and Metalloinvest Holding.

Tags:Siemens VAI, Outotec,investment, iron ore concentrate, long term agreement, Metalloinvest Holding,