Tata Sponge wins bid for 24,000 tonnes/yr from CIL

Tata Sponge Iron announced that it won a bid to deliver 24,000 tonnes of coal from CIL.

The Dollar Business Bureau

Tata Sponge Iron, on Thursday, announced that it won the bid to deliver 24,000 tonnes of coal from Coal India Ltd.

In a recent auction of coal for sponge iron industry, Tata Sponge Iron won the bid to transport 24,000 tonnes Grade G4 coal per annum from state-run CIL.

In its BSE filing, Tata Sponge Iron said that the tonnage comprises less than 10% of the annual coal requirement of the company.

The data is based on the information displayed on the MSTC e-commerce website. However, Tata Sponge, a coal-based sponge iron producer, is yet to receive the formal allotment letter.

Tata Sponge Iron operates three rotary kilns bearing capacity to produce 3,90,000 tonnes of sponge iron per annum.

The annual report of the company revealed that they used coal worth Rs 229 crore in FY15 as against Rs 263 crore used in FY14.

Iron ore and coal make up 80% of the total cost of production.

In FY15, Tata Sponge sourced most of its iron ore from Tata Steel. Coal requirements were fulfilled from CIL auctions and imports.

The Dollar Business Bureau - Jun 16, 2016 12:00 IST