JSW Steel keen on bidding for iron ore mines

Our Bureau Mumbai | Updated on March 12, 2018

Mr Sajjan Jindal, Chairman & MD, JSW Steel (file photo).

Transparent allocation of natural resources thru auctions needed: Sajjan Jindal

JSW Steel is exploring the possibility of bidding for iron ore mines when auctioned by the Government.

Last year, the Supreme Court-appointed Central Empowered Committee (CEC) had recommended cancellation of ‘Category C’ mines (where substantial illegal mining had happened) and auction them based on a scheme to be approved by the Supreme Court.

The company will have an opportunity to participate in the bidding to get some of these mines, said JSW Steel in its annual report.

Mr Sajjan Jindal, Chairman and Managing Director, JSW Steel, said that even after having a presence for more than two decades in Karnataka, investing more than Rs 35,000 crore and creating thousands of jobs in the State, JSW Steel remains the only major steel company in India with no captive mines.

With a production capacity of 11 million tonnes, JSW Steel is completely dependant on imports for coking coal, while iron ore is sourced from mines in Karnataka.

In a note to shareholders, Mr Jindal said value addition in India has often been compromised.

He said a transparent process of allocating natural resources through auctions is the need of the hour.

Last year, the Supreme Court banned iron ore mining in Bellary, Chitradurga and Tumkur districts of Karnataka.

The shortage of iron ore supply had put pressure on JSW Steel’s profitability.

In April, CEC recommended mining at ‘Category A’ mines, which were not part of illegal mining.

The company plans to nearly double its retail outlets, JSW Shoppe, to 600 in next three years from 350 currently.

It plans to add 50 outlets by end of this fiscal.

Sales through these outlets have gone up 23 per cent to 1.40 million tonnes (mt).

The company targets average monthly sales of 1,000 tonnes per Shoppe, adding up to 7.2 mt a year sales by 2015.


Published on July 05, 2012

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