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Essar Steel Commissions Phase I of Pellet Plant
04/10/2012 - Essar Steel has commissioned a 6 million tonnes-per-annum (MTPA) pellet making facility in Odisha. This is the first phase of the 12-MTPA pellet plant to be commissioned by 2013.
Essar Steel has commissioned a 6 million tonnes-per-annum (MTPA) pellet making facility in Odisha. This is the first phase of the 12-MTPA pellet plant to be commissioned by 2013.
Essar Steel is investing Rs. 4200 crore to set up an integrated facility as part of its ongoing investments in the state of Odisha. The integrated facility includes a 12-MTPA iron ore beneficiation plant at Dabuna and a 253-km slurry pipe line connecting Dabuna and Paradip. It is expected to reduce the operating costs per tonne and improve the cost competitiveness.
The pellet plant in Paradip along with Vizag’s capacity of 8 MTPA will fully secure the iron ore requirements for Essar Steel in India, the company claims. The Paradip pellet plant is the second significant milestone for Essar Steel this year after it announced the expansion of steel capacity to 10 MTPA at Hazira, Gujarat.
Once the 12-MTPA Paradip facility is completed, along with pellet capacity of 8 MTPA at Vizag, Essar Steel will have a total pellet-making capacity of 20 MTPA, reportedly making it the largest pellet producer in the country.
Essar Steel is setting up an iron ore beneficiation plant at Dabuna to upgrade the quality of low-grade iron ore fines from 54% Fe content to over 63% Fe content. The iron ore fines will then be supplied through the 253-km slurry pipe line from Dabuna to Paradip.
The bulk of Essar Steel’s iron ore needs have been secured through off-take agreements with key players such as NMDC, private miners in Odisha, and captive mines in Jharkhand and Chhatisgarh. The off-take agreements, combined with the captive mines and easy availability of low-grade iron ore dumps, provides Essar the necessary raw material security to operate the pellet plant.
Essar Steel, a 14-MTPA global producer of steel, is a fully integrated flat carbon steel manufacturer—with presence in Canada, USA, India, and Indonesia. It makes pipes and extra wide plates, as well as hot rolled, cold rolled, galvanized and color-coated steel. The company has an integrated distribution business with Service Centers and Steel Hypermarts.
The Essar Group is a multinational conglomerate and a leading player in the sectors of Steel, Energy, Infrastructure and Services. With operations in more than 25 countries across five continents, the Group employs 75,000 people, and has revenues of US$ 17 billion.
