Indian state-run iron ore producer KIOCL Limited (formerly Kudremukh Iron Ore Company Limited) is in talks with overseas steel mills to negotiate ‘tolling agreements’ to ensure optimal production and sales from its plants, a company official said on Tuesday, September 21.
KIOCL is talking to global steel mills seeking two back-to-back agreements whereby in the first contract it receives raw material supplies, with a matching second contract for buy-back of iron ore pellets by the mill.
Company officials said that talks have already been initiated with Jindal Shaheed Iron and Steel Company Limited, Oman, and POSCO, South Korea, for such tolling agreements.
They said that KIOCL already has experience in importing iron ore from global resource majors like Vale and Anglo American and exporting iron ore pellets from such imports.
KIOCL has a pellet production capacity of 3.5 million mt per year.