India’s largest iron ore producer NMDC Limited is planning to adopt the ITmk3 technology to create a 400,000-tonne capacity sponge iron unit at Palwancha in Khammam district of Andhra Pradesh.
ITmk3, a new iron-making technology developed by Japanese steel-maker Kobe Steel, uses iron ore fines and thermal coal to produce premium grade steel. The environmentally friendly technology has already been implemented at a 5-million tonne capacity plant in Minnesota, US.
“We don't have the appropriate technology and manpower to utilise the low-grade mining. Hence, we export around 120 million tonne of iron ore,” NMDC chairman and managing director Rana Som told mediapersons here on Monday. “We are bringing the best of technology in leveraging the best use of iron ore for better purpose.”
About 70 per cent of the iron ore that India produces today is from the unorganised sector, which does not have an appropriate technology for conservation and exploration. This affects the production and environment as well, he added.
“India produces 220 million tonne iron ore every year, of which 90 million tonne is for domestic consumption. The country will need 180-200 million tonne iron ore in the coming 4-5 years,” Som said.
NMDC expects the exploration in Bailadila deposits in Chhattisgarh to give an additional 611 million tonne of iron ore, to the 900 million tonne expected originally. “For further drilling, we will convert it into reserves,” he said.
The company is also awaiting the Centre’s approval for a 2-billion tonne coal block at Paloncha in West Bengal. Once approved, this will make NMDC a coal mining-independent company with around 30 billion tonne capacity.
Som said a lot of unplanned activities go on in iron ore, and the basic impediment was lack of a centralised government policy. “We are planning to acquire iron ore and coal mines in Australia, Colombia and three African countries, clearance for which is expected in the next three months,” he said.
