6 August, 2011

Jindal Steel and Power Limited (JSPL) signed an MoU with Australian mining major, Rio Tinto to jointly work towards global commercialisation of the HIsmelt technology to be used in a fully integrated steel making facility. JSPL will be introducing the HIsmelt technology for the first time in the world other than a pilot plant commissioned in Australia.

HIsmelt, short for high-intensity smelting, is the world’s first commercial direct smelting process for making iron straight from the ore. The technology smelts iron ore fines directly using non-coking coals, and offers significant economic and environmental benefits to the steel industry.

The MoU will also involve the relocation of the existing Kwinana HIsmelt plant from Australia to JSPL’s existing facility in Angul, Orissa. The relocated plant will be fully owned by JSPL, and JSPL and Rio Tinto will jointly develop and market the HIsmelt technology in future, with sharing of royalties.

The MOU was signed last night in New Delhi by Mr. Naveen Jindal, Chairman and Managing Director of JSPL, and Mr. Sam Walsh, Rio Tinto Chief Executive, Iron Ore and Australia, in the presence of Mr. Peter Varghese, High Commissioner of Australia in Delhi, India.

JSPL is part of the US$15 billion Indian based OP Jindal Group, currently producing 3 million tonnes steel annually and 1,800MW of power and executing two large steel plants in India (a 6MTPA plant at Angul, Orissa and a 3 MTPA plant in Patratu, Jharkhand).

Mr. Naveen Jindal said, “We are excited to tie-up with Rio Tinto for the HIsmelt technology and look forward to developing it for usage in a fully integrated steel plant.”