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Iron ore mining in Ballari sector, KIOCL set for renewal

Iron ore mining in Ballari sector, KIOCL set for renewal


Mangalore Today News Network

Mangaluru, Sep 01, 2017: State owned PSU-KIOCL Ltd is extensively working to invest in core and new business sector and will soon be back into mining operation in the iron ore block which state government recently notified at Ballari sector. Mine plan preparation for this project is already on way.


KIOCL.j


Environmental impact assessment/environment management plan and environmental clearance works are also being finalized on priority, M V Subba Rao, CMD said.


Addressing the 41st AGM on Thursday, Subba Rao said shareholders adopted annual accounts for FY 2016-17 and approved dividend payment @50% of year’s profit. Due to supportive pricing environment, efficiency in production, swift decision making in exploiting market opportunity and implementing the ’Make in India’ concept, KIOCL achieved top line growth of 353% achieving revenue from operations at Rs 929.36 crore as compared to Rs 205.57 crore in 2015-16.


The company produced 1.460 million tons of pellets during 2016-17, registering a growth of 1360% on y-o-y basis. On the dispatch front, company sold 1.387 million tonnes of pellets, a jump of 239% y-o-y basis. Total sales include export quantity of 0.898 million tonnes which is almost 65% and balance 0.489 million tons was sold in domestic market, Subba Rao said adding the iron ore block in Ballari will help the company ramp up its domestic and export production.


KIOCL has turned around during 2016-17 registering profit after tax of Rs 47.93 crore from a loss of Rs.80.15 crore in the last fiscal. This performance is highly commendable, Subba Rao said, given that as a merchant pellet producer and in the absence of captive mine, lack of iron ore security, the company had incurred huge logistic cost in moving iron ore from Kirandul-Bacheli sector of NMDC to its pellet plant located inside New Mangalore Port premises.


The company has successfully used spare capacity of pellet plant for tolling (conversion) purpose to optimize production capacity and converted imported ore/concentrate into pellets, thereby partnering in Make India Vision of the PM. KIOCL is producing an average of 2 lakh tonnes/ month, which is breakeven point for profitability. By importing iron ore from Brazil and Iran, KIOCL Ltd has converted the same at the plant and exported it to Iran.


To facilitate trading platform to company’s shareholders, KIOCL’s shares has been listed on NSE/BSE from November 2016 and August respectively. This marks fulfillment of investors need for creating sustainable value of their investment in the company, which has already diversified in the field of O and M services. It is also proposed to expand its operation in other parts of the country by setting up new pellet plant on BOO/JV basis, the CMD noted.


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