Iron Ore Pelletizing

Essar commissioned Phase I of India’s largest Pellet Plant

04/12/2012 | Editor: Marcel Dröttboom

Essar Steel has commissioned a 6 million tonne per year pellet making facility in Odisha, India. (Picture: Essar Steel)
Essar Steel has commissioned a 6 million tonne per year pellet making facility in Odisha, India. (Picture: Essar Steel)

Essar Steel has commissioned a 6 million tonne per year pellet making facility in Odisha. This is the first phase of the 12 million tonne per year pellet plant to be commissioned by 2013. Essar Steel is investing INR 4200 crore (approx. USD 800 million) to set up an integrated facility as part of its ongoing investments in the state of Odisha.

Munbai, India – The integrated facility includes a 12 million tonne per year iron ore beneficiation plant at Dabuna, to upgrade the quality of low grade iron ore fines from 54 per cent fe content to over 63 per cent fe content, and a 253 kilometre slurry pipe line connecting Dabuna and Paradip. It will reduce the operating costs per tonne and improve the cost competitiveness. The slurry pipeline apart from being a cost reduction initiative is also the most environment friendly way of transporting raw material for the pellet plant. The pellet plant in Paradip along with Vizag’s capacity of 8 million tonne per year will fully secure the iron ore requirements for Essar Steel in India.

Chairman of Essar Group, Mr Shashi Ruia, said “Odisha is emerging as a big destination for investments in the country and Essar is committed to be a part of this growth story. For Essar, this pellet plant is a crucial piece in its quest to achieve complete vertical integration.” He gratefully acknowledged the support given by the state government under the dynamic and visionary leadership of Chief Minister Shri Naveen Patnaik.

Mr Dilip Oommen, MD & CEO, Essar Steel said: “This will secure a sustainable raw material source at the right cost and we have ensured that the safety and environmental aspects are given due importance in the design, construction and operations of the plant”.

The Paradip pellet plant is the second significant milestone for Essar Steel this year after it announced the expansion of steel capacity to 10 million tonne per year at Hazira, Gujarat. Once the 12 million tonne per year Paradip facility is completed, along with pellet capacity of 8 million tonne per year at Vizag, Essar Steel will have a total pellet making capacity of 20 million tonne per year making it the largest pellet producer in the country.

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