State-run Steel Authority of India has formed a joint venture with Japan's Kobe Steel for producing 500,000 tonne iron nuggets in a year at Durgapur plant in West Bengal.
"A 50:50 joint venture company -- SAIL-Kobe Iron India Pvt Ltd -- has been incorporated on May 25. Memorandum of Agreement is ready for signatures," SAIL said in a presentation to the steel ministry earlier this week.
The joint venture would use Iron Making Technology Mark-3 (ITmk3) for producing iron nuggets from iron ore fines and non-coking coal to use in steel-making electric arc furnaces (EAFS). The technology would be provided by Kobe Steel.
A detailed project report is being jointly prepared by the two companies for setting up the 0.5 mtpa facility at SAIL's Alloy Steel Plant (ASP) in Durgapur, SAIL said, adding that the report was expected to be ready by October this year.
"SAIL will need high grade ferruginous material as scrap substitutes (in future due to 100 per cent continuous casting, scrap generation in its plants would come down substantially) for melting in EAFs and as coolants in Basic Oxygen Furnaces," the company said.
SAIL-Kobe had also signed a Memorandum of Understanding in November 2010 for setting up a 1.2 mtpa gas-based steel plant to produce steel for the auto sector.
Financial viability of the venture is being worked out, it added.
