The state-owned KIOCL will procure one million tonne (MT) of iron ore each from private miner Anglo American from Brazil and Gol Gohar Mining Company of Iran with the first shipment expected next month.
KIOCL (earlier Kudremukh Iron Ore Company) produces iron ore concentrates and iron oxide pellets for domestic firms and also exports the same to companies in Iran, Taiwan and others.
The Mangalore-based company will import iron ore and make pellets, which will then be exported, primarily to Iran.
"We are procuring high grade iron ore from Anglo American from Brazil. The quantity is around a million tonnes and the first shipment is expected in September," KIOCL Chairman and Managing Director Malay Chatterjee told PTI.
Last year, the government permitted KIOCL to export its own manufactured iron ore pellets either by itself or through any entity authorised by them for the purpose.
"On the other hand, we are in the final stages of talks with Gol Gohar Mining company of Iran for a tie up to import about 1 MT of iron ore. It is expected to be formalised in a month, post which the first shipment can take another week to reach Mangalore port," he added.
Anglo American -- which also mines diamonds through its arm De Beers -- will supply iron ore from its Minas-Rio mines in Brazil, while Gol Gohar will supply the mineral from its mine in the Kerman province of Iran.
On importing iron ore from Iran, Chatterjee said iron ore from Iran can arrive in India in four days via port of Bandar Abbas and land at Mangalore.
The firm expects to sell up to 2 million tonnes of iron ore pellets to Iran.
"This can be a perfect example for 'Make in India'. We have already supplied 50,000 tonnes of high grade iron ore pellets to Iran and expect to sell 1-2 MT more," he added.
KIOCL has sold iron ore pellets to the Mobarakeh steel company in Isfahan province of Iran.
Iran produces around 22 MT of iron ore pellets and it imports close to 8-9 MT meet shortfall from MENA, Australia and South America.
"KIOCL wants to import iron ore and make pellets and sell it to Iran to capitalise on this 8-9 MT opportunity. Besides, we are strategically located on the west coast with close proximity to markets in the Gulf region and Iran," Chatterjee said.
Karnataka has also started the process for allotting captive iron ore mines to KIOCL.
The company, under the Ministry of Steel, has a pellet plant of 3.5 MT per annum capacity and a pig iron plant of 2.6 lakh tonnes per annum capacity.
