MANGALURU: In an attempt to ensure assured iron ore supplies and market for its pellets, KIOCL Limited has adopted a new strategy of entering into back-to-back contracts under tolling arrangement.
T Saminathan, CMD, told reporters on Friday under this arrangement, the customer supplies iron ore fines, concentrates, pellet feed to KIOCL and purchases equivalent quantity of pellets from KIOCL against separate purchase and sale contracts.
The PSU is currently in discussion with steel majors Jindal Shadeed Iron and Steel, Oman and POSCO, South Korea for entering into a long term agreement through tolling arrangement for sustenance of its pellet plant operation.
KIOCL has used iron imported from major iron ore suppliers like Vale, Anglo American and mining companies in Canada and India and exported the pellets produced out of the same.
Meanwhile, Saminathan said that the mineral exploration works assigned by the NMET, Ministry of Mines are under different stages of execution. He said that KIOCL has completed G4 level exploration works for four blocks and submitted the report to NMET which includes minerals such as nickel, limestone and dolomite. In addition, 10 blocks of iron and manganese ore allotted by Karnataka government for G2 and G3 level exploration works are under progress.
The company also secured stage-1 in-principle forest and environment clearance from Ministry of Environment, Forest and Climate Change for Devadari iron ore mine at Sandur taluk of Ballari...
Read Full Story: https://timesofindia.indiatimes.com/business/india-business/kiocl-opts-for-tolling-arrangements-of-sustenance-of-its-pellet-plant-operation/articleshow/86302221.cms
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