The 8-million tonne/yr, 267-km long, pipeline will transport iron ore in slurry form from Bailadila mines in Chattisgarh state to Hy-Grade's pellet plant at Vishakhapatnam, replacing the present rail transport. At the signing ceremony K.V.Rao, managing director of Hy-Grade Pellets Ltd said that while OAO Stroytransgaz will send specialists and supply special machinery and equipment for the implementation of the pipeline project, the Zakhem Group of Lebanon will be the EPC contractor. Matthew Stock, director of Hy-Grade Pellets Ltd, said: “The finalization of the pipelaying contract with OAO Stroytransgaz will allow the construction to commence in January, 2003, and will be completed in 18 months. With the completion of this project, Hy-Grade will emerge as one of the world's lowest cost producers of high quality iron-ore pellets.”