Iron ore mining major NMDC has announced the lighting up of its sponge iron unit today after a long shut-down due to administrative reasons.
The plant was shut down about two and half years ago as it was seen to be economically unviable then. However, in the changed circumstances and better demand for steel in the market, the company has decided to revive the unit.
Located at Paloncha in Telangana, the plant has a 100-tonnes-per-day capacity.According to NMDC sources, the plant will be operated at 80 per cent capacity which will enable the State-owned mining major to achieve break even of the expenditure and costs involved.
TS Cherian, Executive Director of NMDC, Bacheli Complex located in Chhattisgarh, lighted one of the units of the plant in the presence of the employees.
NMDC expects the plant to add value to the steel market providing. The supply of iron lump ore lumps will be from the captive mines of NMDC located at Kirandul and Bacheli of the Bailadilla complex. The coal required for the C-Round is being procured from the Telangana and Centre-owned Singareni Collieries Company Limited from its mines in the Kothagudam region.