JSW explores slurry pipeline ore supply for Bengal steel unit

JSW Steel is said to be in talks with both NMDC and Stemcor India for iron ore supply to its upcoming Bengal steel plant.

An official source said, "Stemcor is building a slurry pipeline for supplying iron ore (from Orissa) to steel makers in the eastern parts. Since JSW is the biggest company, with its plant under construction, there have been talks between the two."

Matthew Stock, managing director, Stemcor India Pvt Ltd, told Business Standard, "We are looking to build the pipeline and supply ore to companies making steel in the eastern region. Obviously, there are companies who need iron ore and logistically, road transport is non-viable." Stock declined to say if the company was talking to JSW Steel Bengal. He said transporting ore by road or rail is very expensive in India and a pipeline can be a viable option.

Jayant Acharya, director (commercial and marketing), JSW Steel, said, "It is too premature to talk about it at this point." He said they were actively looking to secure iron ore linkages for the plant and exploring options to get ore from Chhattisgarh, as well as Orissa.

Seshagiri Rao, joint managing director and group chief financial officer, said, “We are waiting for the clearances from the government which should come in the current quarter. We will then start the work on the plant, immediately." JSW Steel is yet to achieve financial closure for the plant as the state government is yet to transfer the land required. The first phase plan is for steel capacity of three million tonnes a year and a 300 Mw power plant.

Stemcor is already building a 230-km slurry pipeline to connect its iron ore mine to its four million-tonne pellet plant in Orissa. It has been stuck over a short distance because of forest clearance permission and this is expected by the end of February. Essar Steel also has a slurry pipeline, 267 km, linking its beneficiation plant in Chhattisgarh’s Bailadilla to the pellet plant at Andhra Pradesh’s Visakhapatnam.