Indian state-run steelmaker Steel Authority of India Limited (SAIL) and Indian state-run miner NLC Limited (formerly Neyveli Lignite Corporation Limited) are likely to tie-up with Australia-based Environmental Clean Technologies Limited (ECT) to use the latter’s proprietary know-how in replacing coking coal with low cost lignite in domestic steelmaking, company sources said on Thursday, October 31.
The proposed joint venture company between the three companies will offer ECT’s ‘MATMOR’ technology for use of cheaper lignite sourced from NLC to feed steelmaking blast furnaces, instead of more expensive imported coking coal, the sources said.
ECT will hold 49 percent of the equity in the proposed joint venture, while the balance equity will be shared equally by the two Indian companies. The venture will set up a pilot plant to establish the technology for use of lignite in steelmaking at an initial investment of $21 million, the sources added.
Last year, a similar joint venture agreement had been signed between ECT, NLC Limited and Indian iron ore miner NMDC Limited. However, NMDC Limited subsequently pulled out of the agreement, with the Australian company claiming ‘lack of responsiveness from the Indian company’ as, even after one year of signing of the agreement with ECT, NMDC Limited did not get the proposal approved by its board of directors.
Now, SAIL will effectively replace NMDC Limited to push ahead with the joint venture, while NLC Limited officials visited ECT headquarters in Melbourne last month to revive the Indian project, the sources added.
