State-owned KIOCL Ltd plans to invest Rs. 430 crore over the next two years to boost iron ore pellets production by more than 40% to three million tonnes (mt), the firm’s chairman said.

“We have plans to reach 3 mt production capability this fiscal year and hence make a profit of Rs. 155 crore,” K Ranganath, chairman and managing director, said in an interview. “The existing infrastructure does not match up to the rated capability of the plant of 3.5 mt per year so we are upgrading our facilities.”

KIOCL has identified a partner to set up an integrated steel plant in Bellary, RM Steel Co, supported by United Telecom group with an investment of Rs. 7,000 crore, Ranganath said.

The firm plans to invest Rs. 125 crore to replace two primary screens that filter the ore and increases concentration of iron in the final product, he added.

Further, KIOCL will install four new secondary screens to improve the iron content of the ore in the next 10 days. Currently, it has six secondary screens.

Likewise, the number of ball mills, which grind the iron ore, will go up to three from one currently. The number of 14 vacuum operating filters will be increased to 17 along with three pressure filters to blow off the fine dust, Ranganath said.
KIOCL is one among hundreds of small iron ore producers in India that contribute to a total production of over 200 mt of the vital mineral a year, half of which is exported mainly to China, the world’s largest steel maker.

The company, the erstwhile Kudremukh Iron Ore Co., manufactures and supplies pellets to steel companies and buys around 2 mt of iron ore from state-run miner NMDC Ltd. KIOCL sales rose o Rs. 1,200 crore in 2010-11.