Kiocl restarts the export of iron ore pellets after 30 months

Kiocl limited, which is engaged in the extraction and granulation of iron ore, seeks to resume the export of iron ore pellets to China in the first quarter after a break that lasted almost two and a half years. The Indian company began export of pellets with a party of about 50,000 tons, the loading of which is carried out in the port of New Mangalor.

Kiocl Managing Director Chatterji specified that iron ore exports ceased in August 2011. Explaining the reason, he said that "the company was forced to do this, since the search for iron ore at the NMDC mines in Chhattisharh was associated with huge logistics costs. In addition, difficulties arose with the determination of iron tariffs. These factors led to high costs that did not allow competing in the world market."

He explained that "the ore will go 750 km by rail and another 1,500 km by sea." Noting that Kiocl granules are very popular in China and Japan, he said: "We open our export after two years and five months of the break. After paying the costs of overcoming the distance, today we are selling in the international market with slight profitability."

Kiocl was forced to stop the prey of minerals in the Kudremukh in the Karnatak region back in January 2006 after the Supreme Court declared the district of the mines in a national park. However, the company continues to work in a mangalor with a production capacity of 3.5 million tons and hopes to export its products to China.