New Delhi: JSW Steel Ltd has bagged three iron ore mines in Odisha, with a combined estimated capacity of around 1.09 billion tonnes, the company informed the stock exchanges on Monday.

“The company has been declared as the preferred bidder for three iron ore mines (Nuagaon iron ore mine, Narayanposhi iron & manganese ore mine, Ganua iron ore mine) in the state of Odisha, in the auctions held by the state government of Odisha on 31 January 2020, 1 February 2020 and 4 February 2020, respectively," the Sajjan Jindal-led company said in a statement.

JSW Steel’s final offer to become the highest bidder as a percentage of average monthly prices of iron ore of different grades and quality, as per the Indian Bureau of Mines, stood at 95.20% for Nuagaon iron ore mine, 98.55% for Narayanponshi iron ore and manganese mine and 132% for Ganua iron ore mine.

The Nuagaon mine has the largest reserve among the three blocks in Odisha, with reserves of 790 million tonnes, higher than the combined reserves of all other mines on offer. The Narayanposhi block has reserves of 190 million tonnes.

The company needs to obtain the letter of intent, all statutory clearances, execute Mine Development and Production Agreement (MDPA) and then start mining operations.

The company owns six iron ore mines in Karnataka, with a combined capacity of 8 million tonnes per annum. These mines cater to 35% of the steel maker’s raw material needs. Five of the six iron ore mines in the southern state are now operational.

JSW Steel is India’s leading integrated steel producer with an installed crude steel production capacity of about 18 million tonnes a year. Around 1.5-1.6 tonnes of ore is required to produce a tonne of steel.

At 1000 am, shares of JSW Steel traded 0.7% lower at 286.00, in line with the broader market where Sensex was down 0.6% at 40,815.37 points.

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