Japan's Kobe in talks for "iron nugget" unit in India

Kobe Steel, Japan's fourth largest steel maker, is in discussions with the  diversified Chowgule group in Goa for an "iron nugget" plant in India.

Iron nugget is produced from iron ore fines and pulvurised coal through Kobe Steel's patented ITmk3 process, and can be used as a raw material in electric arc furnaces to make steel.

A Kobe Steel spokesman said the company was looking to market the technology and set up its first commercial plant. Kobe was in discussions with the Chowgule group and the nature of partnership could be technology transfer or a joint venture, he added.

The size of the facility being talked about is 500,000 tonne, and it would take about two years to set up the plant.

"Mining companies may also find it an attractive way to produce a value-added product for sale in comparison to merely supplying raw materials such as unprocessed iron ore and coal," he said.

If Kobe Steel finally decides to set up the plant in India, it would be the fourth foreign steel maker to invest in India after Posco, Mittal Steel and Sinosteel.