Steel Authority of India Limited (SAIL) is looking for partners to use its low grade Fines. In context to this, Brahmani River Pellets Limited (BRPL) has evinced interest to tie up for Fines utilization.
India’s largest public sector steel maker, SAIL is seeking conversion agents for its low grade Fines. As per the plan, the partners would convert the low grade Fines into Pellets and return back 80% or 90% of it to SAIL.
Executive Director-Projects of Rourkela Steel Plant, SAIL, Sisir Kumar Acharya stated that currently over 10 MnT of low grade Iron ore Fines are lying at several captive mines of the company, located in many states including Chiria (Jharkhand) & Bolani (Odisha). Out of this, about 3-4 MnT of low grade Fines are located at its Odisha mines.
However, it is not decided whether the partners will be selected through auction or other modes of selection. But, SAIL’s RMD has started initial conversations with several Pellets makers for this and after selection of partners SAIL will sign MoU with them. SAIL has supplied around 10 rakes and 4 rakes in the month of Feb, 2014 from its mines located in Odisha & Jharkhand.
In this context, Odisha based Pellet maker Brahmani River Pellets Limited (BRPL), a subsidiary of the London based Stemcor group, has evinced interest for partnering with public sector steel maker SAIL for utilization of the unused low grade Fines.
BRPL, which has 4 MnT pa Iron Pellet plant in Kalinganagar and Jajpur in Odisha, is also planning to trim its capacity on low domestic demand and introduced export duty on Iron pellet. The plants which were running at 50% capacity on raw material scarcity are also planning for shut down of plant.