National Mineral Development Corporation (NMDC) is going to commence trial production at its Donimalai Pellet plant by December, 2014.
State-owned & public sector Iron ore miner NMDC is all set to start trial production at its INR 5.72 billion Pellet plant at Donimalai in Karnataka during Apr-May, 2014 and commence commercial output by the end of 2014.
NMDC, having 1.2 MnT pa capacity is likely to produce Blast Furnace grade Pellets with 65% Iron content, in sizes ranging from 6 mm to 16 mm. A tender seeking Expression of Interest (EOI) from prospective buyers has been floated by the company.
The company has asked the potential customers to share month-wise requirements for FY15 and beyond by 30 May, 2014. NMDC has also planned to set up a 2 MnT pa Pellet plant in Chhattisgarh.
The Donimalai plant comprises of an Iron ore beneficiation unit, having an installed capacity of 1.8 MnT pa. The company is endowing INR 6.50 billion in the entire project.
India with 60 MnT pa production capacity, has exported around 1 MnT of Pellet at present. The decline in export is owing to 5% export duty levied by the government on Pellet export.