India’s leading steelmaker, JSW examines 16 Karnataka mines for bidding in impending Iron ore auctions.
JSW Steel has examined 16 Iron ore mines in Karnataka for bidding in impending auctions based on deposits found.
The Supreme Court had ordered Karnataka government to auction all mines in category C to end-users of the commodity by August-end. Category C mines, which were banned due to illegal mining, are to be auctioned by the state government for ownership.
JSW’s Deputy Managing Director Mr. Vinod Nowal stated in media, “Out of 51 Iron ore mines, we have examined 16 mines in category C. Economically, it is not viable to bid for other mines in the category.”
After completing due diligence, Sajjan Jindal led the company to take decision. The Supreme Court restricted Iron ore mining to 30 MnT in the state that makes low deposits mines unviable, he added further.
JSW Steel is to bid for Iron ore mines as it does not have a captive mine. JSW has to cater the need of 15 MnT Iron ore for its Karnataka based Vijayanagar plant, 6 MnT for Dolvi plant located in Maharashtra and 1.4 MnT for its Tamil Nadu based Salem plant.
It is anticipated that Essar Steel may also bid for category C mines as the company does not have a captive Iron ore mine. JSW Steel believes getting some mines at least in 1 year from the first batch of mine auctions.
To start the auctioning process, the state government shortlisted 15 mines. The government is examining ore left in mines and also formulating policies for India’s 1st ever auction. On the definition of end-use, the state government has sought clarifications from the top court.