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11. April 2012

CN - Essar Steel commissions phase I of Odisha iron ore pellet plant

Essar Steel has commissioned a 6 million tonne per annum pellet making facility in Odisha. This is the first phase of the 12 million tonne per annum pellet plant to be commissioned by 2013.

Essar Steel is investing INR 4,200 crore to set up an integarted facility as part of its ongoing investments in the state of Odisha. The integrated facility includes a 12 million tonne per annum iron ore beneficiation plant at Dabuna and a 253 kilometer slurry pipe line connecting Dabuna and Paradip.

It will reduce the operating costs per tonne and improve the cost competitiveness. The slurry pipeline apart from being a cost reduction initiative is also the most environment friendly way of transporting raw material for the pellet plant.

The pellet plant in Paradip along with Vizag’s capacity of 8 MMTPA will fully secure the iron ore requirements for Essar Steel in India.

Chairman of Essar Group, Mr Shashi Ruia said that “Odisha is emerging as a big destination for investments in the country and Essar is committed to be a part of this growth story. For Essar, this pellet plant is a crucial piece in its quest to achieve complete vertical integration.” He gratefully acknowledged the support given by the state government under the dynamic and visionary leadership of Chief Minister Mr Naveen Patnaik.

Mr Dilip Oommen MD & CEO of Essar Steel said that “This will secure a sustainable raw material source at the right cost and we have ensured that the safety and environmental aspects are given due importance in the design, construction and operations of the plant.”

The Paradip pellet plant is the second significant milestone for Essar Steel this year after it announced the expansion of steel capacity to 10 MMTPA at Hazira, Gujarat.

Once the 12 million tonne per annum Paradip facility is completed, along with pellet capacity of 8 million tonne per annum at Vizag, Essar Steel will have a total pellet making capacity of 20 million tonne per annum making it the largest pellet producer in the country. The entire concept and design of the plant is environment friendly. Essar Steel is setting up a iron ore beneficiation plant at Dabuna to upgrade the quality of low grade iron ore fines from 54% fe content to over 63% fe content. The iron ore fines will then be supplied through 253 km slurry pipe line from Dabuna to Paradip.

Source - Essar Steel

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