Apex court order enables ore beneficiation, value-addition in Karnataka

Our Bureau Updated - November 16, 2017 at 12:29 PM.

Major domestic steel players and NMDC have announced plans to set up iron ore beneficiation/pellet/steel plants in Karnataka.

The Supreme Court order to partially lift the ban on iron ore mining in Karnataka has opened a window of opportunity in ore beneficiation and value-addition such as pelletisation.

The State has suffered a revenue loss of Rs 4,000 crore because of mining ban and lost over 1.5 lakh jobs to illegal mining.

Miners upbeat

“The apex court decision has surely brought cheers for miners and steel companies in the country. Karnataka has the potential to house new projects and also support the old ones,” said Mr Sachin Sehgal, director of OreTeam, a global iron ore and steel research house.

“The need for beneficiation and pelletisation in Karnataka stems from the fact that the ore from the mines is losing its iron content. The mines left unused for almost two years have impacted the grade and content of ore. Thus, depleting iron ore content calls for value addition of the mineral,” explained Mr Sehgal.

“Coupled with raw material shortage because of the closure of the mines and limited availability till the reopening of 30 mtpa mine production (as per the court order) will give boost to these value addition processes,” Mr Sehgal added.

New plants planned

Major domestic steel players such as JSW Steel, Tata Steel, BMM Ispat, Kalyani Steels Ltd, Mukand Ltd, Zeenath Transport Company and the largest mining firm NMDC have announced plans to set up iron ore beneficiation/pellet/steel plants in Karnataka.

Even sponge iron plants can ramp up production by using pellets instead of lumps whose availability is reducing. The route of coal-gasification is also being considered to support the industry needs.

Mr Sehgal said portents of mining revival are reflected in a number of MoUs, which were signed by steel and pellet producers in the State to build new plants or expand existing ones.

Govt initiative

Alongside, the State government is showing willingness to support the iron and steel industry with a slew of administrative measures and incentives.

OreTeam, to facilitate Karnataka rebuild its iron ore mining and steel making capabilities, is holding a two day meet in Bangalore on July 4 and 5.

The meet is expected to discuss issues like new opportunities for the state in iron and steel industry, resumption of iron ore mining and export potential. New and efficient steel and iron making technologies are also to be showcased.

“Siemens VAI from Austria, Kobelco from Japan, Rio Tinto from Australia, Outotec and Severstal like companies are participating,” said Mr Sehgal.

>anil.u@thehindu.co.in

Published on July 2, 2012 16:16