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Kobe Steel And SAIL Agreed To Establish JV For ITmk3 Ironmaking Plant
= Start of operation targeted in 2015 =
Kobe Steel, Ltd. of Japan (Kobe Steel) announced that Kobe Steel and Steel Authority of India Limited (SAIL) agreed to establish a joint venture company to carry out a detailed feasibility study for a commercial ITmk3 ironmaking plant in India. Provisionally called SAIL-KOBE Iron India Private Limited, the proposed 50-50 joint venture will be headquartered in New Delhi. After the detailed feasibility study is completed with the environmental permits having been obtained, plant construction would commence in 2013 at the earliest and the plant would go into operation in 2015.

The two companies have so far been jointly working on a preliminary study to utilize the ITmk3 process developed solely by Kobe Steel since signing a memorandum of understanding in March 2010. Kobe Steel and SAIL will now carry out the detailed feasibility study to bring about the early implementation of the project.

The project consists of one ITmK3 ironmaking plant and associated facilities. With a capacity to produce 500,000 metric tonnes of iron nuggets per year, the plant would be constructed at SAIL's Alloy Steels Plant in Durgapur in West Bengal. Kobe Steel and SAIL will have the right to utilize the iron nuggets produced at the Durgapur plant in proportion to their equity share in the joint venture for their own use, or the joint venture may sell the nuggets directly to the market.

The project would use iron ore from SAIL's mines. Non-coking coal, sourced within India, will be used as the reductant in the ITmk3 Process.

[SAIL] Steel Authority of India was established in 1973, now headquartered in New Delhi and capitalized at US$8.3 billion (in FY2010). Chairman of the company is Mr Chandra Shekhar Verma. With an annual crude steel production of 13.5 million metric tonnes, it has five Integrated Steel Plants and three Special Steel Plants in India. The company has seven captive mines from which 23 million metric tonnes of iron ore were produced in FY2010. In the same year, the company's sales was US$9.4 billion with over 114,000 employees.
last modified : Fri 13 Jan, 2012 [13:59]
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