KIOCL Limited (formerly Kudremukh Iron Ore Company Limited ) plans to enter into tolling arrangement wherein it will import high grade iron ore from overseas suppliers for conversion into pellets with buy-back agreement with the raw material supplier, an industry official said on Thursday.
As beginning KIOCL seeks import of 65,000 mt high grade iron ore fines for conversion into pellets at its 4 million mt per year pelletization plant at Mangalore in southern India with buy-back agreement for pellets with the iron ore supplier.
Last year, KIOCL had commenced imports of high grade iron ore fines (FE content 67% and above) from Brazil and subsequently export pellets from its Mangalore plant to Iran.
However, industry officials said that tolling agreement with suppliers of raw material will ensure improved margins for the company.