KIOCL Resumes Operations, Uncertainty Looms Over Sustainable Supply

Mangaluru: The Kudremukh Iron Ore Company Ltd. (KIOCL) has resumed operations on a limited scale, marking a cautious return after a nine-year hiatus. Production recently restarted using existing iron ore stocks, with a focus on catering to domestic markets instead of exports.

The company’s revival efforts come with significant challenges. Negotiations are ongoing with the National Mineral Development Corporation (NMDC) to secure lower-cost iron ore.

KIOCL's operations were previously hindered by a global slump in demand for iron ore pellets, especially from China, its primary export market. The company requires a minimum international price of $135 per ton to remain profitable.

Adding to its woes, KIOCL is grappling with legal and financial liabilities, including a Rs. 1,349 crore penalty and the demand to relinquish 3,297 acres of forest land in Kudremukh. These obstacles have left the company without a long-term mining solution, putting its future at risk.

As KIOCL cautiously navigates its return, the success of its operations hinges on resolving these challenges to ensure sustainable production.