Coal news and updates

KIOCL to offer its blast furnace for conversion

December 12: KIOCL Ltd has decided to offer is 350 cubic meter capacity blast furnace facility at Mangalore for producing pig iron on conversion cost or licence fee basis for five years, which can be extended by another two years.

The company is not producing pig iron for last few years due to poor market conditions coupled with non-availability of iron ore, industry sources said.

KIOCL Ltd on December 13 invited an expression of interest from the domestic and international firms for operation of their blast furnace, which has a capacity to produce 2.16 lakh tons per annum of foundry grade pig iron.

The furnace was commissioned in February 2011 by Indomag Steel Technology, a subsidiary of Mannesman Demag, Germany with detailed engineering support from M/s Mecon Ltd.

Under the licence fee basis, KIOCL will offer its blast furnace to be used by the licensee and will charge a monthly license fee.

Under conversion cost basis, the operation and maintenance of the unit will be done by KIOCL while raw materials like iron ore lumps/pellets, coke and additives (limestone, manganese ore, dolomite etc) would have to be supplied by the prospective client and the finished product and auxiliaries will be taken out by the client.

The client shall pay to KIOCL the conversion cost on the basis of tonnage of pig iron produced.

The response to the EoI must reach to the company latest by 4 pm on January 6, 2014.