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The mining unit of Industrial Development Corporation Odisha Ltd (IDCOL) has floated fresh tender for sale of 60 grade iron ore fines after the mines department last month said iron ore fines should be sold only to pellet and sinter units and not to sponge iron plants.
“We have floated fresh tender for sale of about 30,000 tonne fines having 0-5 mm and 0-10 mm size from our Roida mines as per the restrictions imposed by the Joda mines office. The minerals will be sold to only pellet and sinter producing units,” said Binay Kumar Mishra, head (mines) of IDCOL.
The office of Joda deputy director of mines (DDM), last month said that sponge iron units must not be supplied with iron ore fines of less than 10 mm. The department argued that since sponge plants need higher sized particles, there is a possibility that after screening larger ore particles, they would sell or export the leftover smaller particle as low grade fines.
Earlier, the sponge iron units used to buy iron ore fines of 5-18 mm size from all private and state-managed mines since there were hardly any pellet makers in the state.
Even as the number of pelletisation and sinter plants have gone up recently , the iron ore sellers are skeptical about the recent restrictions.
“There is a possibility that we might find limited buyer for our fines due to the new restrictions. Currently the restriction is limited only in Joda mining circle, under whose jurisdiction our mines fall. The mines directorate will soon take a decision about it,” said Mishra.
The state-run miner has requested the state government to allow it to supply sponge iron with iron ore fines as per its commitment in contracts made a month ago.
“Henceforth, the fines will be sold only to pellet and sinter plants untill any further direction is received,” said the IDCOL official.
IDCOL has about 140,000 tonne fines of 0-10 mm size stacked at its Roida mines currently.
Though the amount of conversion of fines into pellet is lower in Odisha in comparison with generation of fines, recently it has picked up as many firms have shown interest to produce pellet. Currently, Jindal Steel and Power Ltd, Brahmani River and Pellet Ltd, Essar Steel and Bhushan Steel and Power Ltd are engaged in production of pellets with a combined annual production capacity of 18 million tonne.
Pellets or sinters are produced from dustry iron ore fines and are used as raw material for steel production. They can be used in place of sized iron ore in blast furnaces.
