Kudremukh Iron Ore Company Limited (KIOCL) is a Miniratna Government of India Enterprise having its Head Office in Bangalore; it has Pelletisation and Pig Iron plant units in Mangalore. The Company was established in 1976 as 100% Export Oriented Unit to develop the mine and plant facilities. The Company is primarily engaged in the business of Iron Ore Mining, Benefication and Production of high quality Pellets.
The mine and plant facilities were commissioned in 1980 and the first shipment of concentrate was made in October 1981. The outstanding feature of Kudremukh ore is its low alumna, sulphur, phosphorous, vanadium and other deleterious elements.
A pelletisation plant with a capacity of 3 million tonnes per year was commissioned in 1987 for production of high quality blast furnace and direct reduction grade pellets for export.
A 110 km road through ghats was built, and a slurry pipeline to Mangalore port was completed. KIOCL delivered the project on time, within the estimated cost of US$630 million.
The company entered into Joint Venture with MECON & MSTC in order to set up a Pig Iron & Ductile Iron Spun Pipe Plant at Mangalore. For this purpose a separate company-Kudremukh Iron & Steel Company was set up. The complex was set up in Baikampady Industrial area in Mangalore and has a blast furnace capacity of 350 cu. mtrs to manufacture 227,000 tonnes of high grade pig iron per annum with low phosphorous and low sulphur conten using quality pellets from KIOCL`s pelletisation plant. The production of pig iron was commenced during 2001-02.
KIOCL has obtained ISO 14000 certification for its environmental compliance. The company has applied to Government of Karnataka for grant of Mining Lease in the Chikkanayakanahalli area of Tumkur District and also Chiria area of Singhbhum District of Jharkhand. Since there is a low quality reserve in that area, the company has decided not to pursue with the project.
It is also in the proposal of setting up a Coke Over plant with a capacity of 30 MW at Mangalore next to its Blast Furnace as Backward integration and import substitution.
In pursuance to SEBI Circular dated 22 May 2014 and 17 April 2015 relating to de-recognition of Regional Stock Exchanges, outlining the roadmap for Companies listed exclusively on such Regional Stock Exchanges, the Company opted for listing on a national level stock exchange and promptly got its equity shares listed with Metropolitan Stock Exchange of India in 2015-16. As a step forward, to enhance further visibility in the market, the Board of Directors in their 238th meeting held in April 2016, approved listing of Equity Shares with National Stock Exchange. The Company thereafter applied for and got listed in National Stock Exchange w.e.f. 29 November 2016 under stock code KIOCL`.
A MoU was signed among KIOCL, APMDC and RINL on June 22, 2013 at Hyderabad for exploration and mining of Nemakal iron ore deposit in Ananthapuram District, Andhra Pradesh. Subsequently, Govt. of AP issued notification dated 30 November 2015 reserving an area over an extent of 1327 hectares for Iron Ore in Minchery R.F. of
Kalyandurg Range in Ananthapuram District in favour of M/s A.P.Mineral Development Corporation Limited (APMDC) under Section 17A(2) of the Mines and Minerals (D&R) Act, 1957. APMDC submitted proposal to PCCF, Govt. of Andhra Pradesh for seeking permission to carry out exploratory drilling (20 holes) in the aforesaid area. DGPS survey to demarcate the drilling area is under progress. On receiving the forest clearance for exploratory drilling, work will be undertaken jointly by KIOCL and APMDC. TEFR for the setting up of beneficiation plant and pellet plant will be prepared based on the outcome of the exploratory drilling.
The Company entered into MoU on 8 January 2016 for setting up Joint Venture with West Bengal Mineral Development and Trading Cooperation (WBMDTCL) for exploration and development of iron ore mines and for other minerals in the State of West Bengal. WBMDTCL and the Company will form Joint Venture Company in 51:49 equity. The Company and WBMDTCL to jointly identify an iron ore blocks to put up proposal to State Govt. for reservation of iron ore blocks in favor of JV Company. The Company appointed Consultant for preparation of Joint Venture Agreement (JVA) and other documents and incorporation of JV Company. Joint discussions were held in the month of April 2017 among WBMDTCL, the Company and Consultant. JVA is under finalization for incorporation of the company with due approvals. Ministry of Mines, Govt. of India notified the Company as Mineral Exploration Entity on February 16, 2015 under second proviso of sub-section (1) of Section 4 of the Mines and Minerals (Development and Regulation) Act, 1957. This will facilitate the Company to take up prospecting and exploration works of various minerals across the Country. Ministry of Mines allotted two Nos. G4 stages of mineral investigation blocks to the Company. The blocks were allotted to the Company on September 12, 2016 during the meeting held under the Chairmanship of Secretary, Ministry of Mines, GoI for allocation of exploration blocks to PSUs. The blocks includes, investigation of Iron Ore over an area of 100 Sq. Kms at Tirumankaradu region of Tiruppur District in Tamilnadu State and investigation of Gold and associated minerals over an area of 202 Sq. Kms at Udbur region of Mysore District in Karnataka State. The work plans of both the blocks allotted to the Company is technically approved in the 6th National Mineral Exploration Trust (NMET) Technical Committee meeting, which was held on 2nd and 3rd December 2016. The financial proposals of both the blocks were also approved in the 4th NMET Executive Committee meeting, which was held on February 21, 2017 under the Chairmanship of Secretary, Ministry of Mines, GoI. The exploration works of both the allotted blocks will be taken up soon by the Company as per the directions of NMET and the same will add up to the profitability and would demonstrate the expertise of the Company in the field of mineral exploration.
The Board, at its meeting held on May 22, 2018 approved the Techno Economic Feasibility Report for forward and backward integration projects at Blast Furnace Unit Mangalore at an estimated project cost of Rs.843.90 crores. The Detailed Project Report is under preparation and the same is subject to necessary approval of Central Government.
The Board, at its meeting held on 22 May 2018 approved the Techno Economic Feasibility Report for setting up of 2 MTPA pellet plant on Joint Venture basis with M/s Rashtriya Ispat Nigam Limited at their premises at Vishakhapatnam. The project involved capital investment of Rs.996 crores and is subject to necessary approval of Central Government.
The Company had submitted a conditional financial bid for acquisition of 51% stake with management control in IDCOL. The bid was extended twice and was valid up to 24 August 2017. Subsequently, IDCOL had requested the Company to extend the bid validity by another 6 months. The Board of Directors of the Company reviewed status and in view of the slow progress of the conditions as stipulated in the financial bid, the Board decided not to accede to the request for further extension of financial bid validity. The same was communicated to IDCOL on 24 August 2017.
The company signed a MoU with MECON on 8 January 2018, a sister CPSU under Ministry of Steel to co-operate with each other on non-exclusive basis in order to participate in tenders, bids and Contracts related to Engineering / EPC / Turnkey /BOO/BOT/BOOT basis for new installation or upgrading / revamping, repair of Bene ciation and Pelletisation Plants & coal washery plants in India. This MoU shall initially remain valid for a period of 3 years from the date of signing and shall thereafter be extended on mutual consent of both the parties.