Kudremukh Iron Ore Company Ltd (KIOCL), a Miniratna central public sector under the ministry of steel was established to explore, mine and tap mineral resources. The company's chairman and managing director Malay Chatterjee spoke to HT on a range of issues. Excerpts:
How do you see the future of KIOCL in the aftermath of closure of Kudremukh mine since 2006?
A specialised mining sector PSU lost its identity on closure of mines at Kudremukh since 2006. KIOCL has recently signed a MoU with APMDC for exploration of iron ore deposits in Nemakal village of Andhra Pradesh which will enable the company to regain its lost identity as a mining public sector undertaking.
Why has KIOCL stopped exports?
The imposition of distance based charge (DBC) by the Indian Railways, which is more than 150% the normal tariff, increased the production cost of pellet. This has made the pellet price uneconomical.
KIOCL, in order to utilise its export expertise has decided to access the ore without the help of the railway network to make it viable for exports. The government is contemplating to do away this imposition which will enable KIOCL to regain its dominance in export.