KIOCL resumes limited operations

Team Udayavani, Dec 31, 2024, 11:08 AM IST

Mangaluru: Kudremukh Iron Ore Company Ltd. (KIOCL), which had halted operations 9 ago due to a lack of captive mines and a slump in international demand, has restarted production on a small scale.

Using existing iron ore stocks, the company began production 10 days ago, focusing on domestic markets rather than exports.

KIOCL is negotiating with NMDC for lower-cost iron ore to sustain operations. However, without affordable ore, the plant risks closure within months, sources revealed.

The global decline in iron ore pellet demand, particularly in China, had worsened KIOCL’s financial viability, requiring a minimum price of $135 per ton to avoid losses.

Efforts to acquire a captive mine in Ballari’s Devadari region have stalled, with KIOCL facing penalties of Rs 1,349 crore and demands to return 3,297 acres of Kudremukh forest land. This has left the company without a viable mining source, endangering its long-term operations, sources added.