In the direction of utilising its multi-skilled manpower and expertise in the fields of mining, iron ore beneficiation and pelletisation, KIOCL is looking at expansion in various avenues.
DIVERSIFICATION INITIATIVES
The company is trying to explore the possibilities of entering into an arrangement with mining based PSU’s such as NMDC, SAIL, OMDC, MOIL, NALCO, CIL and MMTC for exploitation and extraction of iron ore or any other mineral in their mines under Mine Developer and Operator mechanism or under Contractual Mining mechanism. They are aggressively planning to expand its pellet production capacity by setting up the pellet plants in iron ore belt by utilising low grade iron ore mines available with Public Sector Undertakings such as SAIL, NMDC, OMDC etc. Discussions have been initiated with SAIL, RINL-OMDC, NMDC for setting up of pellet plants under a joint venture mode.
KIOCL, a Public Sector Undertaking under the Ministry of Steel, is a 100% export oriented unit falling in the Mini Ratna category and is also looking at establishing chemical laboratory at Sandur, Hospet Taluk, Karnataka for iron ore quality testing services to outsiders beside own usage while participating in e-auction and creating of infrastructure for providing ‘E-commerce facilities’ to potential clients on commercial basis besides meeting company’s own requirement. They are also proposing to set up solar power plant of capacity 25.0 MW in Anantapur district, Andhra Pradesh. Discussions are being held with APTRANSCO, APSIDC and NEDCAP Ltd.
NEW MINING ASSETS OVERSEAS
In related news, KIOCL has entered in to a Memorandum of Understanding (MoU) with M/S Curve Capital Ventures Limited, Mauritiana for exploration, development and mining of iron ore, setting up of a beneficiation plant, value added plants and other infrastructure in Ajkoujt Iron Ore Project. A high-level delegation consisting of E K Bharat Bhushan AS and FA, Ministry of Steel, CMD and senior officials of KIOCL visited the proposed site of Akjoujt Iron Ore Project, Mauritania in September this year. The delegation visited the permitted area for understanding the mineralisation and proposed captive ore handling facilities. Government of Mauritania assured of lending all possible help and assistance to KIOCL for establishing mineral based industries in Mauritania.
EFFORTS ON DOMESTIC MINING ASSETS
A top-level meeting was convened with Hon’ble Chief Minister of Kerala at Thiruvananthapuram on October 16, 2012 regarding the establishment of mineral based industries in Kerala. Hon’ble CM assured that opportunity will be given to KIOCL for establishing business ventures in Kerala.
On October 9th, 2012, CMD had a follow-up meeting with Principal Secretary, (Industries and Commerce), Government of Andhra Pradesh to review the status of PL application of KIOCL for iron ore deposit of Nemakallu in Bommanahal Mandal and Hiradahalu in D. Hirehal Mandal in Anantapur district. Principal Secretary expressed that Government of Andhra Pradesh is considering the PL application of APMDC, since APMDC is the organisation within the state and therefore priority shall be given in allocation of PL/ML. He also mentioned that KIOCL may take up the mining operations on agreed terms and set up beneficiation and other value added plants in a Joint Venture with APMDC. Consequent to this understanding, a draft MoU has been sent to APMDC for their consent.
The Company in last few months has made ten number of application for Prospecting Licenses and Mining Leases across State boundaries in Orissa, Jharkhand, Chhattisgarh and Andhra Pradesh.
OTHER INITIATIVES
Company is looming ahead in diversification in exploring solar power. The country is catching up with the exploration of solar power and the current union budget has announced an allocation of Rs 10 billion (US$189 million) towards the Jawaharlal Nehru National Solar Mission and the establishment of a clean energy fund. It is an increase of Rs 3.8 billion (US$71.8 million) from the previous budget. This new budget has also encouraged private solar companies by reducing customs duty on solar panels by 5% and exempting excise duty on solar photovoltaic panels.
This is expected to reduce the cost of a roof-top solar panel installation by 15–20%. The budget also proposed a coal tax of US$1 per metric ton on domestic and imported coal used for power generation. Additionally, the government has initiated a Renewable Energy Certificate (REC) scheme, which is designed to drive investment in low-carbon energy projects.
With a view to develop and demonstrate technical performance of grid interactive solar power generation, achieve reduction in the cost of the grid connected solar systems and the cost of solar power generation in the country, the Ministry of New and Renewable Energy will support Grid Interactive Solar Power Generation projects as demonstration projects in the country. The Ministry will consider support for a maximum capacity up to 50 MW during the 11th Plan period.
Company on an intersect has realised that e-commerce had a wide range in scope with only state-owned MSTC being monopolised. E-commerce plays ample business position. The efforts are being made to diversify into this area being a server portal and huge scope and business potential . The Company has roped in an International IT Giant to look for remunerative business move for better utilisation of its manpower and IT capability.
DIVERSIFICATION INITIATIVES
The company is trying to explore the possibilities of entering into an arrangement with mining based PSU’s such as NMDC, SAIL, OMDC, MOIL, NALCO, CIL and MMTC for exploitation and extraction of iron ore or any other mineral in their mines under Mine Developer and Operator mechanism or under Contractual Mining mechanism. They are aggressively planning to expand its pellet production capacity by setting up the pellet plants in iron ore belt by utilising low grade iron ore mines available with Public Sector Undertakings such as SAIL, NMDC, OMDC etc. Discussions have been initiated with SAIL, RINL-OMDC, NMDC for setting up of pellet plants under a joint venture mode.
KIOCL, a Public Sector Undertaking under the Ministry of Steel, is a 100% export oriented unit falling in the Mini Ratna category and is also looking at establishing chemical laboratory at Sandur, Hospet Taluk, Karnataka for iron ore quality testing services to outsiders beside own usage while participating in e-auction and creating of infrastructure for providing ‘E-commerce facilities’ to potential clients on commercial basis besides meeting company’s own requirement. They are also proposing to set up solar power plant of capacity 25.0 MW in Anantapur district, Andhra Pradesh. Discussions are being held with APTRANSCO, APSIDC and NEDCAP Ltd.
NEW MINING ASSETS OVERSEAS
In related news, KIOCL has entered in to a Memorandum of Understanding (MoU) with M/S Curve Capital Ventures Limited, Mauritiana for exploration, development and mining of iron ore, setting up of a beneficiation plant, value added plants and other infrastructure in Ajkoujt Iron Ore Project. A high-level delegation consisting of E K Bharat Bhushan AS and FA, Ministry of Steel, CMD and senior officials of KIOCL visited the proposed site of Akjoujt Iron Ore Project, Mauritania in September this year. The delegation visited the permitted area for understanding the mineralisation and proposed captive ore handling facilities. Government of Mauritania assured of lending all possible help and assistance to KIOCL for establishing mineral based industries in Mauritania.
EFFORTS ON DOMESTIC MINING ASSETS
A top-level meeting was convened with Hon’ble Chief Minister of Kerala at Thiruvananthapuram on October 16, 2012 regarding the establishment of mineral based industries in Kerala. Hon’ble CM assured that opportunity will be given to KIOCL for establishing business ventures in Kerala.
On October 9th, 2012, CMD had a follow-up meeting with Principal Secretary, (Industries and Commerce), Government of Andhra Pradesh to review the status of PL application of KIOCL for iron ore deposit of Nemakallu in Bommanahal Mandal and Hiradahalu in D. Hirehal Mandal in Anantapur district. Principal Secretary expressed that Government of Andhra Pradesh is considering the PL application of APMDC, since APMDC is the organisation within the state and therefore priority shall be given in allocation of PL/ML. He also mentioned that KIOCL may take up the mining operations on agreed terms and set up beneficiation and other value added plants in a Joint Venture with APMDC. Consequent to this understanding, a draft MoU has been sent to APMDC for their consent.
The Company in last few months has made ten number of application for Prospecting Licenses and Mining Leases across State boundaries in Orissa, Jharkhand, Chhattisgarh and Andhra Pradesh.
OTHER INITIATIVES
Company is looming ahead in diversification in exploring solar power. The country is catching up with the exploration of solar power and the current union budget has announced an allocation of Rs 10 billion (US$189 million) towards the Jawaharlal Nehru National Solar Mission and the establishment of a clean energy fund. It is an increase of Rs 3.8 billion (US$71.8 million) from the previous budget. This new budget has also encouraged private solar companies by reducing customs duty on solar panels by 5% and exempting excise duty on solar photovoltaic panels.
This is expected to reduce the cost of a roof-top solar panel installation by 15–20%. The budget also proposed a coal tax of US$1 per metric ton on domestic and imported coal used for power generation. Additionally, the government has initiated a Renewable Energy Certificate (REC) scheme, which is designed to drive investment in low-carbon energy projects.
With a view to develop and demonstrate technical performance of grid interactive solar power generation, achieve reduction in the cost of the grid connected solar systems and the cost of solar power generation in the country, the Ministry of New and Renewable Energy will support Grid Interactive Solar Power Generation projects as demonstration projects in the country. The Ministry will consider support for a maximum capacity up to 50 MW during the 11th Plan period.
Company on an intersect has realised that e-commerce had a wide range in scope with only state-owned MSTC being monopolised. E-commerce plays ample business position. The efforts are being made to diversify into this area being a server portal and huge scope and business potential . The Company has roped in an International IT Giant to look for remunerative business move for better utilisation of its manpower and IT capability.
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