Visakhapatnam: The Rashtriya Ispat Nigam Limited, the corporate entity of the Vizag-based Visakhapatnam Steel Plant, signed a long-term agreement with the NMDC for the supply of iron ore products from Donimalai mines in Karnataka.
This is a significant initiative taken by RINL in the securitization of raw material supply to supplement the supplies from NMDC, Bailadila Chhattisgarh. This agreement will help in augmenting supplies of iron ore for three blast furnace operations. As per the agreement, NMDC will supply one lakh tons of ore per month.
The steel plant resumed operations at Blast Furnace-3 after signing an agreement with Jindal Steel and Power Limited recently. The plant needs a minimum daily requirement of 4 rakes of iron ore fines, 2 rakes of slimes, and 2 rakes of iron ore lumps to meet its consumption.
In all, it requires 6 lakh metric tons of iron ore every month. RINL is also sourcing iron ore from private importers, which are bringing iron ore to India via the sea route. The firm has also started sourcing iron ore from the mines of Vedanta, besides continuing with NMDC as well, company sources said.
NMDC, the country’s largest iron ore merchant miner, is also under the steel ministry.
