KIOCL Ltd (formerly Kudremukh Iron Ore Company Ltd) is likely to add a significant share to cargo-handling at New Mangalore Port Trust, if production plans at its iron-ore pellet plant in Mangalore are any indication. KIOCL is one of the major users of the port.
In a chat with Business Line here, Mr K. Ranganath, Chairman and Managing Director of KIOCL Ltd, has said the company is hopeful of producing around three million tonnes (mt) of iron-ore pellets during 2011-12. “If we can do this amount, it will be almost 60 shipments a year from the port here,” he said.
The New Mangalore Port handled 2.76 million tonnes of iron-ore pellets during 2010-11 as against 1.5 million tonnes in 2009-10.
(The port handled 0.93 million tonnes of iron-ore fines cargo during 2010-11 as against 5.2 million tonnes in the previous fiscal.)
The Mangalore pellet plant will be able to produce more after it is modified,, he said.
The company — it had stopped mining on December 31, 2005, at Kudremukh in Chikmagalur district of Karnataka following a Supreme Court order — is now procuring the ore from public-sector NMDC Ltd and some private miners.
Mr Ranganath said the company supplies around 40 per cent of its production to the domestic market, while the rest is exported.
If the Indian market can take more, the company can provide more, he said.
To a query on the estimated profit for 2011-12, he said the company expects to register 40 per cent more from 2010-11.
In 2010-11, the company recorded a profit of Rs 100 crore, he added.
Profits may rise if the company gets some captive mines for its pellet plant.
The company has applied for mining lease in Chikkanayakana Halli and Ramandurga areas with the Karnataka Government.
“We are waiting for the Government response on this. The company can do better, if it gets mines,” he said.