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India’s NMDC, RINL seek third partner for iron-ore slurry pipeline

16th September 2013

By: Ajoy K Das

Creamer Media Correspondent

  

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KOLKATA (miningweekly.com) – Indian iron-ore miner NMDC Limited and steel producer Rashtriya Ispat Nigam Limited (RINL) are looking to sign on a third partner for a $350-million slurry pipeline and pellet plant.

The companies, both majority owned by the Indian government and under administrative control of the Steel Ministry, are planning to build a 450 km slurry pipeline connecting NMDC’s mines in the central Indian province of Chhattisgarh to RINL’s plant at Vishakhapatnam, in southern India, along with a 10-million-tonne-a-year pelletisation plant.

According to NMDC officials, both partners had sought clearance from the Steel Ministry to bring in a third partner to operate and maintain both the pipeline and the pellet plant in lieu of a minority equity stake in the special purpose vehicle, which would implement the project.

The pipeline, scheduled for operation in 2015/16, would traverse the three provinces of Chhattisgarh, Odisha and Andhra Pradesh, and transport ore from NMDC’s principal Bailadila reserves to the RINL steelmaking facility.

RINL currently sources iron-ore from the Bailadila mines through railways and the pipeline would cut down transportation costs substantially, the official said, adding that it would also enable the iron-ore miner to double production from its mines to 50-million tonnes a year.

Two years ago, a blast orchestrated by left-wing extremists in Chhattisgarh damaged the company's old 230 km pipeline, which had a capacity to transport eight-million tonnes of ore slurry between the Bailadila mines and Vishakhapatnam.

The new pipeline connecting the same two points would be constructed along highways and not cut across forests, as the sabotaged one had, to ensure better protection from threats of sabotage.

Edited by Esmarie Iannucci
Creamer Media Senior Deputy Editor: Australasia

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