By John Lee.
India’s state-run company KIOCL is considering building an iron ore pellet complex in Iran at a cost of about $59 million.
According to the report from Reuters, the company is also in talks to sell more than 2 million tonnes of the steelmaking raw material to Iran.
The deal could offer cheaper processed iron ore to Iranian steel mills that.
KIOCL Chairman Malay Chatterjee (pictured) told Reuters that he discussed setting up a 1.1 million tonne plant for ore purification, and a 1.1 million tonne pelletising plant, through a potential joint venture with a local Iranian company when he visited Tehran late last year.
But negotiations could be complicated by plans for two Iranian companies — Gol-e-Gohar and Sangan Mines — to start their own pellet production from March, adding more than 5 million tonnes in supplies.
Iran used to import 7-8 million tonnes of pellets a year, with total demand of 28-29 million tonnes.