Rashtriya Ispat Nigam Ltd (RINL) is considering setting up a 10 million tonne per annum (mtpa) iron ore beneficiation and pellet plant at Bhilwara, said Chairman and Managing Director, A.P.Choudhary, on Monday.

The public sector steel maker expects to secure an iron ore mineral concession from the Rajasthan Government soon.

The Rajasthan Government has recommended allotment of one iron ore mine to RINL at Bhilwara and the proposal is under active consideration of the Mines Ministry. The last stage formalities are being worked out and we expect to get a mineral concession for the Bhilwara iron ore mine, Choudhary told reporters. The estimated iron ore reserve at the Bhilwara mine is pegged at 320 mt.

Choudhary said the investments in the proposed beneficiation and pellet plant at Bhilwara is still being worked out. RINL, which is in the midst of expanding its capacity from 3 to 6.2 mt per annum, depends mainly on another state-owned entity NMDC for its raw material requirement.

Choudhary was speaking to reporters after Steel Minister Beni Prasad Verma reviewed the company’s performance for the first half.

RINL reported a 7 per cent drop in revenues for the April-September 2012-13 period at Rs 5,789 crore over the corresponding last year’s Rs

6,216.40 crore on sluggish sales and lower steel prices. The company posted a 2 per cent rise in net profit at Rs 225.19 crore for the period against Rs 221 crore in the corresponding period last year.

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