The Hindu : Business : NMDC to tap Rio Tinto’s technology expertise

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Tuesday, Aug 19, 2008
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NMDC to tap Rio Tinto’s technology expertise

Special Correspondent

Five-lakh tonne pig iron plant planned in Chhattisgarh

— PHOTO: PTI

MINING PROSPECTS: General Manager, Rio Tinto Iron Ore, Siddharth Jain (right), exchanging documents with Executive Director, Resource Planning, NMDC, A. K. Gupta, after signing an agreement in New Delhi on Monday.

NEW DELHI: NMDC is toying with the idea of setting up a five-lakh tonne pig iron plant in Chhattisgarh, using HIsmelt technology from global miner Rio Tinto. The company is already talking to HIsmelt Corporation, a unit of Rio Tinto.

HIsmelt is a substitute for the conventional blast furnace route to make steel. It is designed to use non-coking coal and low grade iron ore fines to produce hot metal.

Confirming the move to establish a pig iron unit in Chhattisgarh after his company inked a memorandum of understanding with U.K. based Rio Tinto group to explore investment opportunities in the country and globally, NMDC Chairman and Managing Director Rana Som told reporters that both sides would leverage their strengths to mutual advantage.

Also, NMDC wanted to get access to what is the best in the world through Rio Tinto, Mr. Som added.

According to the MoU, they would jointly start looking out for mining reserves in India. The arrangement is restricted to mining new mineral resources identified by the joint working team.

The proposed pig iron plant of NMDC would be in addition to its four million tonnes integrated steel unit in the same State. It proposes to use about 21 million tonnes of ultra fine iron ore reserves for making pig iron and hot metal with HIsmelt process.

Based on conceptual engineering studies, a plant capable of producing eight lakh tonnes annually of hot metal with HIsmelt process is expected to cost about $290 million.

A HIsmelt plant occupies lesser space than an integrated steel making unit.

After completion of the detailed engineering, it normally takes about two years to construct and commission a HIsmelt plant.

Rio Tinto India Managing Director Nik Senapati said the company had so far invested about $70 million in different projects in India.

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