 "The logo of JSW is seen on the company's headquarters in Mumbai. Photo: Reuters")
In a bid to ensure raw material self-sufficiency, Sajjan Jindal-led JSW Steel is planning to participate in the upcoming auction of iron ore mines in Karnataka and other states.
"JSW Steel currently does not enjoy as much access to captive raw material resources like some of its peers. However, the company is working to enhance its raw material self-sufficiency. To achieve this, it continues to explore opportunities, both within and outside India," the company said.
The new Mines and Minerals (Development & Regulation) Amendment Act has called for a level playing field for the industry players and transparent allocation process of raw materials through competitive bidding, it added.
JSW Steel will focus on this opportunity to enhance raw material security going forward, the firm said.
The company further said that it "intends to participate in the forthcoming auctions of C-category iron ore mines in Karnataka".
The firm also "plans to participate in the auction of iron ore mines in few other states as well, to fulfill the company's goal of self-sufficiency on the raw materials front, JSW Steel said in its annual report for 2015-16.
On the issue of coal, JSW Steel said it has secured the "Moitra" coking coal block via auction process. This mine has total extractable coal reserve of around 30 million tonnes (MT) and is situated in Jharkhand.
JSW Steel, flagship firm of the $11 billion JSW Group, has plants spread across six locations in Karnataka, Maharashtra and Tamil Nadu with a combined installed capacity of 18 million tonnes per annum (MTPA).
The firm also has an objective of achieving a capacity of 40 MTPA in the next decade.
Maharashtra and Karnataka are set to auction 15 iron ore mines, with an area of more than 790 hectares and estimated reserves of over 260 million tonnes (MT), beginning July.
While Karnataka will put 14 mines under the hammer, Maharashtra will auction one iron ore mine.
For Karnataka, the initial bid date was postponed to July 11 due to issues related to stamp duty. But now, amendment to the Stamp Duty Act is under final consideration of the state cabinet, which will clear the docks for the auction.
In the case of Maharashtra, the initial bid date is July 29 for the Devge-Banda block in Sindhudurg district.
