Jindal Steel & Power signs pact with Rio Tinto

Jindal Steel and Power has signed an agreement with Australian miner Rio Tinto which will bring the non coking coal HIsmelt technology to its upcoming steel plant in Orissa.

By ET Bureau | Updated: Aug 05, 2011, 04.20 PM IST

NEW DELHI: Jindal Steel and Power has signed an agreement with Australian miner Rio Tinto which will bring the non coking coal HIsmelt technology to its upcoming steel plant in Orissa.

The advantage with this high-intensity smelting technology that has only been used in a pilot plant in Australia, is the relief it will provide from coking coal costs. India is deficient in coking coal and its unyielding high prices have eaten away the margins of steelmakers in recent quarters.

Under the agreement, the existing Kwinana HIsmelt plant in Australia will be relocated to JSPL’s Angul plant. JSPL and Rio Tinto will jointly develop and market the HIsmelt technology in future. The company did not share financial details of the deal.

“HIsmelt is suitable to the resources of India and offers huge environmental benefits to a steelmaker like JSPL,” said Mr Sam Walsh, Rio Tinto Chief Executive, Iron Ore and Australia in a company release. “This opportunity with JSPL is most exciting, as we integrate the HIsmelt flow sheet into their existing steel works in Angul, Orissa, an acceleration of proving of the technology to full design capacity,” he added.

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