Tata Steel plans to build an iron ore pellet plant with
an annual capacity of four million metric tons, to support
its proposed steel project in Bangladesh.
"We''ll need pellets for our Bangladesh steel project.
So we''ll build a pellet plant," said a senior TISCO
official. "We''re still deciding on the location...it
could be either in Bangladesh or in India."
Steel is India''s second largest steelmaker with an annual
capacity of four million tons. Although the official didn''t
give details on the investment needed for the pellet plant,
industry analysts estimate that a four-million-ton pellet
plant would cost about Rs600 crore ($130.91 million).
Iron ore pellets are used to make sponge iron, which is
melted in an electric furnace to make steel.
Steel recently said it is building a steel plant with
a 2.4 million capacity in Bangladesh, as part of the Tata
group''s $2-billion investment proposed in that country.
investment includes building a fertiliser plant and a
power generating facility. TISCO official said that that
company l is likely to face a shortfall of about 250,000
tons of hot metal due to a planned shutdown of one of
its blast furnace at its Jamshedpur facility.
Steel recently said it proposes to shut the blast furnace
from December. 1, 2004. "Although the shutdown would
result in a shortfall of about 350,000 tons (of hot metal),
we''re confident of meeting about 100,000 tons from our
other blast furnaces," said the official.
ore and other raw material are melted in a blast furnace
to make hot metal, which is then rolled into various other
categories of steel. He said that Tata Steel has negotiated
with other steelmakers to meet the expected 250,000-ton
spoken to SAIL (Steel Authority of India Ltd.) and some
global steelmakers to meet this deficit," he added.
State-owned SAIL is India''s largest steelmaker with an
annual capacity of 13 million tons.