NEW DELHI | Jun 15, 2016: Tata Sponge Iron today said it has won the bid for delivery of 24,000 tonnes of coal from state-run miner Coal India Ltd (CIL).
"The company successfully bid for 24,000 tonnes per annum of Grade G 4 coal from CIL, in a recently held auction of coal linkages for the sponge iron industry. This tonnage constitutes less than 10 per cent of the company's annual coal requirement," it said in a regulatory filing.
This intimation is based on the information available on the website of MSTC e-Commerce. The company is yet to receive the allotment letter, it added.
Tata Sponge is a coal-based merchant sponge iron producer and operates three rotary kilns with an installed capacity of 3,90,000 tonnes per annum (TPA) to produce sponge iron.
According to its annual report, the firm used coal worth about Rs 229 crore in 2014-15 against around Rs 263 crore in 2013-14.
Iron ore and coal alone constitute more than 80 per cent of the cost of production.
During 2014-15, the firm sourced almost all of its iron ore requirement from Tata Steel. It sourced half of its coal requirement from auctions of CIL while the other half was imported.
(Source: http://economictimes.indiatimes.com/)