Orissa to promote value addition of iron ore fines

The Orissa government will promote value addition of iron ore fines in the state. The government has already entered into a memorandum of understanding (MoU) with three companies for manufacturing of pellets using iron ore fines and nine more proposals are in the pipeline.

The state level single window clearance authority (SLSWCA) has approved 9 more proposals for manufacturing pellets using iron ore fines.

Once all these plants are commissioned, hundred percent value addition of the iron ore fines can be achieved in the state, said steel and mines minister, Raghunath Mohanty.

He said, the government is encouraging value addition of fines through setting up of pelletisation plant, sintering plant and the use of finex technology in the process of steel making. Brahmani River Pellets (4 million tonne per annum), Essar Steel Ltd (8 million tonne per annum) and Posco India (12 million tonne per annum with finex process) have signed MoU with the Orissa government to make use of fines. Similarly, the proposal of 9 other companies to make use of fines to manufacture steel has been approved by the SLSWCA headed by the chief secretary.

These companies include Essel Mining Industries (2 mtpa), Welspun Power and Steel (3 mtpa), Welspun Orissa Steel Pvt. Ltd. (4.4 mtpa), Bhushan Steel Ltd. (4 mtpa), JSW Steel Ltd. (5 mtpa), Armstrong Pellets Private Ltd., Sree Metalliks Ltd. (1.2 mtpa), Rungta mines (4 mtpa) and Shyam Steel Industries (2 mtpa). Combinedly, these units are expected to use 28 million tonne fines per annum.

Though 28.9 mtpa iron ore fines was produced in the state during the last fiscal, only 1.41 mtpa was utilised. Nilachal Ispat Nigam Ltd. (NINL), Arya Steel, Bhushan Power and Steel (in blast furnace route) and Adhunik Metalliks are using the fines.

The minister said, the average cost of production of iron ore fines per tonne is about Rs 300 to Rs 400. The price of the fines exported (freight on board) is about 2450 per tonne.