Jindal Steel and Power Ltd (JSPL) has tied up with Rio Tinto to develop and commercialise the latter's HIsmelt technology, which eliminates the use of coking coal in steel production.
HIsmelt is a direct smelting process for making iron straight from the ore. The Rio Tinto-owned technology smelts iron ore fines directly using non-coking coal and is said to be environment friendly and cost effective.
An MoU was signed between the JSPL Chairman, Mr Naveen Jindal, and Mr Sam Walsh, Rio Tinto Chief Executive, Iron Ore and Australia, on Thursday night. Both entities will work on commercialising the technology globally and share royalties, said a statement from JSPL.
As part of the MoU, JSPL will redeploy the Kwinana HIsmelt plant from Australia to Angul and the relocated plant will be fully owned by JSPL. Financials were not disclosed.
Shares of JSPL ended marginally lower at Rs 542 on the BSE on Friday.
The Kwinana HIsmelt plant is owned by a joint venture of Rio Tinto (60 per cent stake), Nucor Corporation (25 per cent), Mitsubishi Corporation (10 per cent) and Shougang Corporation (5 per cent).
JSPL produces 3 million tonnes of steel annually and 1,800 MW. It is executing two large steel plants (a 6 MTPA plant at Angul and a 3 MTPA plant in Patratu, Jharkhand).
Mr Walsh said: “We believe the HIsmelt process remains the future for making iron, particularly in locations where coking coal and good quantity of iron ore lumps are not available and where the need to reduce the environmental footprint is increasing, thereby ensuring the ongoing sustainability of this essential industry. HIsmelt is suitable to the resources of India and offers huge environmental benefits to a steelmaker like JSPL.”