KIOCL signs O&M agreement with NMDC

Both the firms have signed an agreement to this effect at Donimalai in Bellary

Public sector mining company KIOCL Limited has entered into an agreement with another public sector mining major NMDC Ltd for operating their pellet plant at Donimalai in Bellary district.

NMDC, which also operates its mines in the district, has set up a new beneficiation plant of 1.89 million tonnes per annum capacity and a pellet plant of 1.2 million tonnes per annum capacity for commercial pellet manufacture.

KIOCL has over 40 years of experience in operating a beneficiation plant at Kudremukh in Chikkamagalur district and a pellet plant at Mangaluru had offered to operate and maintain NMDC’s plant at Donimalai.

Both the companies on Wednesday signed the O&M agreement at Donimalai to operationalise the plant, KIOCL said in a statement.

N Vidyananda, Director (Production & Projects), KIOCL, and CE Kindo, Executive Director and Incharge of Donimalai Project, NMDC, signed the agreement in the presence of CMDs of both the companies.

Malay Chatterjee, Chairman & Managing Director, KIOCL, said that the  contract will facilitate KIOCL to gainfully  utilise its experienced manpower for operating the NMDC plants for the mutual benefit of both the CPSUs and thanked the ministry for facilitating the proposal.

Chatterjee also highlighted that the “operation & maintenance vertical” that he has spearheaded for implementing it as a diversification measure, has come as a succour to the company in the absence of captive mines to utilise its available experienced competent manpower.

He mentioned that this will go a long way in making the company sustainable in the long run too.

Narendra Kotari, Chairman & Managing Director, NMDC, lauded the effort of KIOCL and stated that the NMDC partnering KIOCL will achieve landmark milestone in pelletisation programme in the country.

While the KIOC has operated its own beneficiation plant using magnetite iron ore at Kudremukh, it will operate the plant using haematite ore for the first time in Donimalai. However, it has shifted over to haematite ore at its pellet plant in Mangalore. Its experience at Kudremukh and Mangalore will come handy for it to operate the NMDC’s plant at Donimalai, the company sources said.