Unconfirmed reports indicate that Stemcor is holding discussion with Jindal Steel and Power (JSPL) to sell its Odisha-based unit, Brahmani River Pellets (BRPL).
BRPL, which is a unit of the US-based steel trader, owns a pellet plant at Jajpur in Odisha. The pellet plant gets iron ore through a 220-km underground slurry pipeline from BRPL's 4-million tonne per annum beneficiation plant at Barbil.
The beneficiation plant refines low-grade iron ore fines from local mines. The pellet plant converts low-grade fines into value-added pellets used in steel-making.
JSPL has a 5 mn tpa 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 mn tpa from the existing 3.5 mn tpa.