Jindal Steel in talks to buy Stemcor’s pellet unit in Odisha
New Delhi: Jindal Steel and Power (JSPL) is in talks with UK-based steel trader Stemcor to buy its Odisha-based unit, Brahmani River Pellets (BRPL), a source said.
"JSPL and Stemcor are engaged in discussions for buying the pellet plant…BRPL is a wholly owned Stemcor project," the source said.
BRPL has a 4-million tonne per annum beneficiation plant at Barbil, which supplies a pellet plant at Jajpur in Odisha through a 220-km underground slurry pipeline. The beneficiation plant refines low-grade iron ore fines from local mines.
"We do not react to market speculation," JSPL said. "As a growing company, we are always on the lookout for opportunities to expand, enhance and add value to our business."
Stemcor could not be immediately contacted.
The pellet plant, located close to a number of steel producers, converts the low-grade fines into value-added pellets used in steel-making.
JSPL has a 5 mtpa pellet plant at Barbil, which caters to the company's steel plant at Raigarh.
JSPL's raw material requirements will increase after the completion of its current phase of expansion, which will raise steel production capacity to 7.5 mtpa from the existing 3.5 mtpa.