New Delhi: State-run KIOCL Ltd has signed an agreement to export iron ore pellets to in South Korean, European and Non-Chinese markets. In a regulatory filing to the stock exchanges on Tuesday, KIOCL said, "Pursuant to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that KIOCL Limited and Glencore International AG (GIAG) has signed a non-binding Memorandum of Understanding (MoU) on 25th October, 2021, whereby KIOCL Limited will supply iron ore pellets to GIAG for further sale by GIAG in South Korean, European and Non-Chinese market." The MoU shall be valid for a period of one year.
KIOCL is an Export Oriented Unit (EOU) and a PSU under the Ministry Of Steel engaged in the manufacturing and marketing of iron ore pellets. It sells pellets in overseas markets among empanelled customers. KIOCL has recently introduced a tolling arrangement in order to ensure iron ore supplies and market for its pellets. Under the arrangement, the customer supplies iron ore fines, concentrates, pellet feed to KIOCL and purchases equivalent quantity of pellets from KIOCL against separate purchase and sale contracts.
Pellets are small balls of iron ore used in the production of steel. They are made with technology that uses the powder that is generated during the ore extraction process, once considered waste. Iron ore pellets can act as a substitute to sinter and calibrate lump ore in blast furnaces.
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