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KIOCL looks at foreign steel majors for supplies

Iron ore producer KIOCL has started exploring new sources to supplement the shortfall in National Mineral Development Corporation (NMDC) supplies. 

Published: 18th September 2021 05:55 AM  |   Last Updated: 18th September 2021 05:55 AM   |  A+A-

Steel

For representational purposes. (File Photo | Reuters)

By Express News Service

MANGALURU: Iron ore producer KIOCL has started exploring new sources to supplement the shortfall in National Mineral Development Corporation (NMDC) supplies. On Friday, KIOCL’s newly appointed CMD, T Saminathan, said they have adopted a new strategy of entering into back-to-back contracts under tolling arrangement, which helps the company with assured iron ore supplies and a market for its pellets. The customer supplies iron ore fines/concentrates/pellet feed to KIOCL and purchases equivalent quantity of pellets from the company against separate purchase and sale contracts. 

KIOCL has used iron imported from major iron ore suppliers like M/s Vale, M/s Anglo American and mining companies in Canada and India and exported the pellets produced. The CMD said the KIOCL is currently in discussion with steel majors M/s Jindal Shadeed Iron and Steel, Oman, and M/s POSCO, South Korea, to enter into long-term agreement through tolling arrangement for sustenance of its pellet plant operation. 

“We are planning to begin it in three months time. With this, the cost of production is expected to come down. This is part of Aatmanirbhar Bharat,” he said.  He said the mineral exploration works assigned by NMET, Ministry of Mines, are under different stages of execution. KICOL completed G4 level exploration works for four blocks,  and submitted the report to NMET.  In addition, 10 blocks of iron and manganese ore, allotted by the Karnataka Government for G2 and G3 level exploration works, are under progress. 

Annual Meeting
At the 45th AGM of KIOCL, held on Wednesday, the shareholders adopted the annual accounts for financial year 2020-21 and approved the final dividend of Rs 1.64 / per equity share (ie. 33.09 per cent of PAT) on face value of  Rs 10 each. The total dividend for the financial year ended March 31, 2021, amounts to Rs 99.67 crore. 


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