[Ferro-Alloys.com]Incorporated on April 2, 1976, KIOCL Limited (formerly Kudremukh Iron Ore Company Limited) came to be known as Asia’s largest open cast iron ore mining and pelletisation complex. The unit engaged in the business of exporting high quality iron oxide pellets and pig iron.

 

Headquartered in Bengaluru, the company’s mining and beneficiation facilities were located in Kudremukh and the iron oxide pelletisation complex and pig iron unit in the well-connected coastal city of Mangaluru.

 

Mining activities at the work site at Kudremukh came to a halt by the end of 2005, with the Supreme Court confirming the status of Kudremukh National Park area over the mines in the region. A global slump in iron ore prices has led to the idling of its 3.5 MTPA pellet plant in Mangaluru. But the prudence of its Chairman-cum-Managing Director Malay Chatterjee is taking the enterprise to new horizons. He speaks to City Express about his multi-pronged strategy to revive the company.

 

Given the present situation, what are your plans for moving ahead?

 

While the overall industry scenario is down, KIOCL has still registered profit even though iron ore prices have dropped. But we are undertaking several initiatives to utilise the skilled manpower that has been idle due to the intermittent operation of the Mangaluru plant.

KIOCL has set up a Mine Exploration Department to take up exploration activities in various states. In this regard, we are also in active dialogue for signing an MoU with Mineral Exploration Corporation Ltd, Nagpur for mining exploration works.

 

Further, we have got a go-ahead for sourcing ore from Iran for manufacturing iron ore pellets in India. These pellets will then be exported back to Iran to meet the demand of Iranian steel mills. It will be a boost to the government’s Make In India campaign. We are confident that these initiatives will bear fruits especially due to our past experience.

 

What is your immediate short-term and medium-term focus?

 

The immediate focus is rationalisation and utilisation of manpower. In 2012-13, we had 22 per cent surplus manpower and through a proper understanding, we had a golden handshake with around 300 members of our team who opted for voluntary retirement.

 

We have re-strategised KIOCL’s operations to tap the opportunities through new business portals such as  operation and maintenance vertical with National Mineral Development Corporation (NMDC) in its upcoming 1.89 MTPA beneficiation and 1.2 MTPA pelletisation plant at Donimalai. To minimise the operations cost, Mangalore Refinery and Petrochemicals Limited has outsourced its pet coke handling system at Mangaluru to us. We have also taken up operation, repair and maintenance of 1.2 MTPA chrome ore beneficiation plant of Odisha Mining Corporation at Kaliapani and have commenced the production of beneficiated chrome ore from May 8.

 

In our medium-term plan, we have initiated a proposal on the setting up of a pellet plant of 1.5 MTPA capacity on Build, Own and Operate (BOO) basis with Bokaro Steel Plant of Steel Authority of India Limited for effective utilisation of our resources.

 

KIOCL has also signed an MOU with Institute of Minerals and Materials Technology, Bhubaneswar in March to cooperate with each other and develop beneficiation and pelletisation technology in the country. We have also initiated Multidisciplinary Design Optimisation works with NMDC to augment its production targets under the medium-term plan.

 

The state government has revised the eligibility criteria for participation in the auctioning of C-category mines. The process will begin soon and we shall be putting in our efforts to acquire a captive mine through this format.

 

Apart from that, obtaining iron ore and other minerals through mining leases in India, optimising Blast Furnace Unit for profitable operation, capturing domestic pellet market under road/rail dispatch and setting up of an R&D centre are on the agenda.

 

How about your long-term plan?

 

We intend to secure mining leases in Karnataka and other states. The company has signed an MoU with Andhra Pradesh Mineral Development Corporation and Rashtriya Ispat Nigam Limited for exploration and exploitation of mineral deposits in the district of Ananthpur, Andhra Pradesh and also for setting up of value addition plants in the state. We are also looking at setting up of pellet plant and matching capacity beneficiation plants near the source of raw material in Jharkhand, Chhattisgarh, Odisha and Karnataka. We are also thinking of becoming joint venture partners in the special purpose vehicles for mining and ultra mega steel projects under the vision plan of the Ministry of Steel.

 

Apart from these, there are many other diversification and rejuvenation plans which are still in fluid form and would require some time to concretise. In the coming year, you would definitely see a rejuvenated KIOCL with all its diversification plans fulfilled.  

 

What are your other diversification plans?

 

We are hoping to venture into solar power generation and distribution.

 

Tell us about your inclination to invite the upcoming IIT in Karnataka to Kudremukh.

 

We have sent a letter to the chief minister as well as to the Minister for Higher Education to consider Kudremukh for setting up of first IIT campus in the state. KIOCL has stopped mining operations at Kudremukh and we have revenue as well as free hold land of approximately 2,500 acres and advanced infrastructure facilities like a township of 2,000 quarters, a guest house with 54 rooms, a 50-bed hospital and more. It will take minimum time to start the IIT.