JSW Steel, India’s leading integrated steel producer with a capacity of 14.3 MnT pa, is planning to participate in Goan e-auction of 58% Fe grade ore.
JSW Steel is thinking to lift Iron ore from Goan e-auction and uses it for its Dolvi (Maharashtra) based steel plant. JSW operates a 3.3 MnT pa steel plant at Dolvi; of which it requires around 5.5 MnT Iron ore per annum. At present, the company sources its key raw material from Odisha & Chhattisgarh.
The recent order of the Supreme Court on lifting embargo from Iron ore mining in Goa has invigorated the hope of sourcing Iron ore from Goa. However, the company dominates any possibility of using ore for its main steel plant at Toranagallu in Karnataka’s Bellary district.
Deputy Managing Director of JSW Steel Vinod Nowal stated in media, “Goan ore has Fe content ranging between 46-50% and so it is of low quality. There is limited quantity of Iron ore having Fe content between 55-58%. We require 18-20 MnT pa for our steel plant based at Karnataka and owing to logistical constraints we can’t use Goan ore. But, we are mulling to use it for our Dolvi plant in future.”
He further added, the company is now considering the possibility of procuring Goan ore for sea-shore based plant at Dolvi. JSW plans to lift the material and transport it through sea route.
Goan government, following the Apex Court’s directive, started the sale of 11.5 MnT Iron ore lying at jetties and mines heads. JSW has registered with Director of Goa Mines & Geology (DMG) to participate in auction.
Goa, DMG has auctioned around 1.7 MnT Iron ore till now, in which 1.6 MnT is sold. It received good response from Indian exporters.