Iron-ore mining company KIOCL Ltd is planning to set up a coke oven battery unit to supply coke and to generate power for its blast furnace unit and pellet plant in Mangalore.
Speaking on the sidelines of a function to plant trees in and around Mangalore here on Monday, Mr Subba Rao, Director (Production and Projects), KIOCL (formerly Kudremukh Iron Ore Company Ltd), said the company has a blast furnace unit to manufacture pig iron with a capacity of 2 lakh tonnes a year.
The company has stopped making pig iron as it is not profitable at present. The battery unit will help it produce pig iron at a lower cost and generate power.
The project, which is in initial stages, is before the Department of Environment of the Central Government for permission.
Saying that the project will be continued after the Department gives permission, Mr Rao said this unit will help supply coal to the blast furnace unit at a cheaper rate.
Falling ore prices
The plant is ready for starting a ductile iron spun pipe plant in Mangalore under a joint venture, he said.
On the activities at the pellet manufacturing unit in Mangalore, he said the plant is dependent on iron ore sourced from Chhattisgarh. The transport cost of the ore from Chhattisgarh and the decrease in prices of the processed commodity are adding to the woes of the company.
The company has got a mine with ores to the tune of 70 million tonnes at Chikkanayakana Halli in Karnataka. But it cannot mine there because of the mining ban in the State, he said.
The company is planting 2,600 saplings in parts of Mangalore. Nearly Rs 20 lakh will be spent for the maintenance of these saplings, he added.