Hyderabad: State-run miner NMDC will be setting up a 300,000-tonne capacity plant to make iron ore concentrate from iron ore waste with an investment of Rs150 crore in Karnataka, a top executive of the PSU said on Thursday.
The mining major has reserves to the extent of 12 million tonnes of iron ore waste from which iron can be extracted further. The waste has been generated over a period from regular mining, NMDC chairman and managing director Rana Som said here.
“We have evolved certain processing mechanism in our R&D centre whereby we are in a position to extract a certain percentage of iron from them (waste). We are spending Rs150 crore for a 300,000 tonne per annum plant in Donimalai (Karnataka) where the waste are available,” he said.
Som was speaking on the sidelines of a workshop organized by Mining, Geological and Metallurgical Institute of India.
“With our new mechanism, we will be able to start high grade iron ore concentrate production from which iron pellets can be manufactured in 24 to 30 months.”
To a question, he said they were awaiting a reply from the coal ministry for setting up coal-to-liquid project in West Bengal. The Steel ministry is also keen on the project.
“This is a huge opportunity, but we have not yet received the final nod from the coal ministry. Not only NMDC, even steel ministry is approaching the coal ministry for approval as fast as possible. I believe the initial investment will be Rs1,000 crore for the entire project,” Som said.
NMDC and Coal India are in talks to set up a JV to develop the project in Birbhum district. South Africa’s Sasol Ltd has been approached for technical collaboration.