Jindal Shadeed Iron and Steel, a part of the Naveen Jindal led-JSPL group, plans to begin work on its $300-million iron ore pellet plant in Oman within four months, a news report has said.

The company is in the process of seeking environment clearances for the 7 million tonne per annum (mtpa) project.

However, Jindal Shadeed, part of the $12-billion steel conglomerate JSPL, has shelved its plan to set up a second 1.5 mtpa capacity direct reduction iron (DRI) plant in its complex in Oman’s Sohar due to non-availability of additional natural gas as feedstock.

“We are applying for environmental clearance for the 7 million tonnes per annum capacity pelletising plant, which may take three to four months,” Mr D. K. Saraogi, Jindal Shadeed’s Executive President, told the Times of Oman.

Jindal Shadeed is currently negotiating with technology suppliers for the project.

Mr Saraogi said there are several options for energy, in case his group does not get additional natural gas to feed the new project from the Oman government.

“We are contemplating use of alternate fuel for our pelletising unit. Our company will see the possibility of using LPG, LNG, or even other oils as fuel for the project,” he was quoted by the newspaper as saying.

Referring to raw material sources for its proposed pellet plant, Mr Saraogi said the Jindal group plans to import iron ore from its mines in India or Bolivia.

“We will source the iron ore from our sister concern — Jindal Steel and Power, Bolivia. If required, we will import from other sources too,” he said.

Apart from using it for captive consumption at its existing DRI unit, the pellets will be exported to GCC (Gulf Cooperation Council) countries.

Referring to the melting shop, which is under construction, he said, “All the project activities — piling, civil and structural fabrication — have been started. Major long lead items are being ordered. It is expected to be commissioned by end-2013.”

The melt shop will have a capacity of 2 mtpa. Jindal has invested $650 million so far in the proposed integrated steel complex and the implementation of a steel melt shop and a pelletising unit will take the total investment to $1.25 billion.

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