Sajjan Jindal, Chairman and Managing Director of JSW Steel, expects a growth of 9-10% in output of crude steel in FY 14. Though in FY 13 there were lots of challenges in front of them owing to the tough economic environment.
JSW Steel is a flagship company of the JSW Group based in Mumbai, India. It is the largest integrated private steel manufacturer in India in terms of installed capacity. Post the merger of JSW Ispat Steel into JSW Steel the company has became a giant player.
Recently Category B mine in Karnataka has started with its mining operations along with the already existing Category A and National Mineral Development Corporation (NMDC). As per the orders from the Supreme Court not more than 30 MnT of iron ore should be operated from Karnataka in order to preserve the mineral for a longer period of time. In accordance to this statement, S. Jindal says that NMDC is producing around 10MnT of iron ore per year, Category A mine has a capacity of 5MnT a year and recently started Category B mine can produce around 6 MnT at the end of the year, and thus a total of 20-21 MnT of iron ore will be produced from the state.
Since past two years the mining operations in Karnataka was banned completely giving the JSW Steel a very challenging period in their steel production capacity. Yet they were able to produce around 70% in the first year and 80 % in the next. Now when they have around 20-21 MnT Capacity of iron ore they can surely expect a growth in production of crude steel and might have 85% production capacity. Also they have a lot of poor quality iron ore dumped in the mines which they can use with the innovative techniques and produce crude steel with it, hence increasing the production capacity.
JSW Steel will be bidding for a 6 MnT capacity Category C mines as soon as the auction commences for the same. As there is a limitation for Category C mines of not to exceed a 6 MnT capacity of iron ore production. Hence they will get the same amount from the mines which have environment, forest and approval from the Indian Bureau of Mines (IBM).