According to media sources, India’s JSW Steel Ltd has engaged Finland’s Metso group for an additional pellet site in Vijayanager, Karnataka in the southern region of India. The 8 million mt plant includes grinding, filtration and a pyro-processing plant. Presently, JSW Steel has a capacity of 13 million mt of which 9 million mt is in Vijayanager, Karnataka and 4 million mt in Dolvi, Maharashtra in western India. The pellet plant which is to be installed at the 10,000-acre Vijayanagar plant in 2020 will increase the JSW Steel capacity total to 21 million mt. Additionally, a separate segment of JSW has acquired a 49 percent equity stake in Brahmani River Pellets a 4 million mt plant in Odisha. JSW has a goal of achieving 50 million mt in internal pellet production.
JSW Steel notes the need for increasing the internal pellet production for blast furnace feed on environmental and productivity reasons. The rich alumina Indian iron ore affects sintering and increases the carbon footprint. JSW Steel has emerged as the preferred bidder on several iron ore blocks in the Karnataka region in August.
India at the moment has pellet capacity of 85 million mt and active production of 60 million mt, 71 percent capacity utilization. According to an ICRA report previously referenced by SteelOrbis, India’s pelletization capacity is estimated to achieve 100 million mt by FY 2020, ending on March 31, 2020.