India-based steelmaker Essar Steel has announced that it has commissioned an iron ore pellet producing facility with an annual capacity of 6 million mt in Paradip, Odisha state. This is the first phase of the 12 million mt per year pellet plant to be commissioned by 2013.
Essar Steel is investing INR 42 billion to build an integrated facility including a 12 million mt per year iron ore beneficiation plant at Dabuna that will upgrade the quality of low grade iron ore fines from 54 percent Fe content to over 63 percent Fe content and a 253 km slurry pipe line connecting Dabuna and Paradip. The slurry pipeline, which is the most environment friendly way of transporting raw material for the pellet plant, will reduce the operating costs per metric ton.
According to the company's statement, once the Paradip facility is completed, Essar Steel's total pellet making capacity will increase to 20 million mt per year, along with pellet capacity of 8 million mt per year at the Vizag facility, fulfilling the iron ore requirements of Essar Steel in India. The facility will also make Essar Steel the largest pellet producer in the country.