India's Ministry of Steel has announced that the country's largest integrated iron and steel producer, Steel Authority of India Ltd. (SAIL), is planning to build three greenfield pellet plants.
In a statement on the issue, India's minister of state for steel Dr. Akhilesh Das said that a plant with an annual production capacity of 900,000 mt at Dalli mines in Chhattisgarh and a plant with an annual output capacity of 1 million mt at Gua mines in Jharkhand are being planned. SAIL will not make any investment for the establishment of these two plants; instead it will provide iron ore fines to the parties setting up the pellet plants and these parties will supply pellets to SAIL on a conversion cost basis.
Meanwhile, another plant with an annual capacity of 2 million mt is planned to be set up at Taldih mines in Orissa for which the total investment cost will be paid by SAIL. The company will hire a consultant for the mill and the cost will be known after the finalization of the detailed project report. The state of Orissa holds almost one fifth of the nation's iron ore reserves.