India-based conglomerate Essar Group has stated that it will start to use low grade iron ore fines for steelmaking at the Essar Steel plant in Hazira in the western Indian state of Gujarat, thus becoming one of the first steelmakers in India to use low grade iron ore fines.
Prashant Ruia, CEO of Essar Group, stated that the Hazira plant's annual output capacity has been increased from 7 million mt to 10 million mt. The use of low grade fine ore is expected to reduce the plant's costs by 60 percent.
Mr. Ruia commented, "Most of our raw material will be low grade fines which are much cheaper. A bulk of our iron ore needs have been secured through off-take agreements with key players such as NMDC and captive mines in Jharkhand and Chhatisgarh. In addition, iron ore beneficiation plants have been set up by the company to facilitate usage of low-grade iron ore fines abundantly available in the country."