 "JSW Steel wins five iron ore mines in Karnataka")
The estimated reserves of the five mines is 111 million tonnes, which was won by the steel producer at the auction held between October 1-6, it said.
The category C mines that were auctioned through the period have low grade of ore. With this, the company has further strengthened its backward integration which would help the company control its input costs.
The Mumbai-based company for a very long time has been dependent on e-auctioned ore subjecting itself to vagaries of the market price in turn allowing its margins to get affected.
Iron ore and coking coal are the key raw material used in the making of steel. Captive source of raw material can help company bring down its costs.
The highest final offer made by the company to become a preferred bidder is in the range of 58.9 percent to 102.52 percent of average monthly price of iron ore of different grades and quality published by the Indian bureau of mines published on Karnataka, said the release.
Company said it would take the next necessary actions to make the mine operational.
JSW Steel is one of the largest steel companies in the country with a capacity of 18 million tonnes.