JSW Steel wins five iron mines in Karnataka, coal mine in Jharkhand
JSW Steel believes the acquisition of the iron ore mines Karnataka and Jharkhand will enhance its raw material security
New Delhi: JSW Steel has won five iron ore mines in Karnataka with an estimated reserve of 111 million tonnes. The steel major has also secured Moitra coking coal mine through an auction in Jharkhand. The mine has total extractable coal reserve of around 30 MT.
“The company has won five mines in the auctions of C-category iron ore mines in Karnataka. Two mines (0.71metric tonnes per annum (MTPA) capacity) will be operational by first half of 2017-18 and the remaining three will be operational by the end of the fiscal. All five mines are expected to produce approximately 4.7 MTPA iron ore,” JSW Steel said in its Annual Report 2016-17.
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It is in the process of seeking all statutory clearances for commencement of mining operations. The company believes this will enhance its raw material security.
JSW Steel CMD Sajjan Jindal said: “The government has put in place a transparent mechanism for allocation of mineral resources through auction. We participated in auctions of iron ore mines in Karnataka and won five mines in October 2016, which have estimated reserves of 111 million tonnes, that meets approximately 20% of the total requirement at Vijayanagar.”
The company is also striving to commence mining at the earliest, while continuing to bid for more iron ore and coal mines, he said.
It continues to focus on backward integration by investing in its resource base to secure critical raw materials, the statement said.
“The new MMDR Act passed in 2016 has called for a level playing field for industry players with a transparent allocation process of raw materials through competitive bidding. During the year, the firm focused on this opportunity to enhance its raw material security and won five mines in the auctions...in Karnataka,” it added.