 "JSW Steel to import 6-mt iron ore due to shortage")
To tide over the raw material shortage at its three plants, JSW Steel has decided to import six million tonnes (mt) of iron ore in the current financial year from overseas markets such as Canada and South Africa. The company has already received its first shipment of 170,000 tonnes of high-grade ore from South Africa at Krishnapatnam port in the first week of this month. Three more shipments in capesize vessels are estimated to reach Indian ports in next few days.
“The recent closure of mines in Odisha and delay in opening of mines in Karnataka and Goa had resulted in an acute shortage of ore in India. We have decided to import half a million tonne of high-grade ore every month to maintain the capacity utilisation at optimum level. The surging iron ore prices due to shortage in India is a grave concern when international prices dropped by more than 30% in the last 12 months,” said Seshagiri Rao, Joint Managing Director and Group Chief Financial Officer, JSW Steel.
JSW Steel’s steelmaking capacity is 14.3 million tonnes a year at Vijayanagar in Karnataka, Dolvi in Maharashtra and Salem in Tamil Nadu, and needs 30 million tonnes annually of ore to maintain the current rate of capacity utilisation.
Iron ore production in India fell significantly during the last few years from 218 million tonnes (mt) in 2009-10 to 136 mt in 2013-14. It is expected to drop to 100 mt in 2014-15 against the demand of 140 mt.
A majority of mines in key ore producers Karnataka and Goa are yet to resume normal operations despite a partial lifting of court-ordered mining bans.
“The recent closure of mines in Odisha and delay in opening of mines in Karnataka and Goa had resulted in an acute shortage of ore in India. We have decided to import half a million tonne of high-grade ore every month to maintain the capacity utilisation at optimum level. The surging iron ore prices due to shortage in India is a grave concern when international prices dropped by more than 30% in the last 12 months,” said Seshagiri Rao, Joint Managing Director and Group Chief Financial Officer, JSW Steel.
JSW Steel’s steelmaking capacity is 14.3 million tonnes a year at Vijayanagar in Karnataka, Dolvi in Maharashtra and Salem in Tamil Nadu, and needs 30 million tonnes annually of ore to maintain the current rate of capacity utilisation.
Iron ore production in India fell significantly during the last few years from 218 million tonnes (mt) in 2009-10 to 136 mt in 2013-14. It is expected to drop to 100 mt in 2014-15 against the demand of 140 mt.
A majority of mines in key ore producers Karnataka and Goa are yet to resume normal operations despite a partial lifting of court-ordered mining bans.