Essar inks Rs 960cr pact with Harsco to recover iron from slag
New Delhi: Striving to become a "zero-waste" firm, Ruias-promoted Essar Steel has inked a Rs 960 crore pact (USD 160 million) with Harsco India for recovering iron from slag that is generated in the process of making steel.
"The Agreement is for a period of 15 years valued at USD 160 million over the duration of contract. As per agreement, Harsco will recover iron from slag which can then be reused in steel making," Essar Steel today said in a statement.
Essar Steel, which has a 10 million tonne per annum plant in Hazira, has been using slag for making various construction materials; but the decision to rope in Harsco, a leading firm in slag processing and metal recovery, is aimed at eliminating wastage of iron content in the slag.
Essar Steel did not mention the amount of benefit that would accrue to the company following the tie-up with Harsco India, a unit of the US-headquartered parent.
"This agreement is in line with the objective of Essar Steel to become a "zero-waste" company. We remain committed to the cause of sustainable development," said Rajiv Bhatnagar, Director at the Hazira Facility of Essar Steel India.
Essar Steel generates around 1 million tonne slag each year and using the slag, it makes paver blocks which are not only cheaper, but also stronger and heavier compared to cement paver blocks. The company has also plans to set up ancillary units using the slag to make aggregates.
The agreement with Harsco India is part of Essar Steel's sustainability efforts, Bhatnagar said, adding that the company has taken various steps towards the goal to become a "zero waste" firm.
Essar Steel has presence in presence in Canada, USA and Indonesia apart from India with a total 14 million tonnes per annum steel-making capacity.