Indian state-run steel producer Steel Authority of India Limited’s (SAIL) Rourkela Steel Plant (RSP) has signed a contract with a consortium to construct a 2 million mt per year pellet plant to ensure optimal resource utilization, a company statement said on Thursday, February 20.
The consortium comprises Orissa Metaliks Private Limited and Rosemary Sponge and Ispat Private Limited. The pellet plant would come up on a construct, operate and maintain (COM) basis.
The project is slated for completion within 24 months from the effective date of signing. The operation and maintenance (O&M) contract is structured for a period of 20 years with a provision to extend it for an additional five years on mutually agreed terms and conditions, RSP said in the statement.
The pellet plant will enable efficient utilization of ultra-fines generated from mining, which are otherwise unsuitable for sinter making. The pellets produced will have a higher iron (Fe) content (63 percent), significantly reducing slag rates in blast furnaces compared to sinter (54 percent).
A combination of improved sinter quality and pellet utilization will enhance permeability, increase coke dust injection and facilitate oxygen enrichment, resulting in higher blast furnace productivity and lower coke consumption, RSP said.