Metso Outotec said the contract includes engineering and design of the indurating system, engineering of the process gas fan system, supply of proprietary equipment, and the instrumentation and control systems. Financial details were not disclosed.

The Yukun plant targets 4 million tonnes of pellets per year, with production expected to start in 2023, said the company.

Attaul H. Ahmad, vice president, Ferrous and Heat Transfer business line at Metso Outotec, noted that Metso Outotec's travelling grate technology decreased energy consumption and emissions.

The company's travelling grate technology uses a green balling section where, after the mixing stage, green pellets are formed either by rolling on discs or in drums. The drums use a two-stage process where undersized pellets are returned to the drum via a roller screen, while discs using a single process step to discharge pellets from the disc rim within a very narrow size range.

In January, Metso Outotec was chosen by BSIET to build another pelletising plant in southwest China, following a similar deal last October focused on the southeastern city of Nantong.

"Driven by rapid modernisation of its economy, construction, infrastructure and manufacturing industries, China is continuously developing its production facilities and capabilities to meet the domestic and world demand, as well as the increasing sustainability requirements related to emissions control and carbon neutrality," said Ahmad.