Will shut K'taka ops if ban not lifted: Kalyani Steel
Speaking to CNBC-TV18, RK Goyal, the managing director of Kalyani Steel says that even post the Supreme Court order revoking the ban on mining in Karnataka, it might take a good three-five months before iron ore is actually made available.
Kalyani Steel was today up 10.2% on expectations of the Karnataka mining ban being lifted partially. The ban has been a bone of contention for the companies that have mining activities in Bellary and Chitradurg districts, who claim that lack of iron-ore has been impacting operations and many have indeed shut down plants.
Speaking to CNBC-TV18, RK Goyal, the managing director of Kalyani Steel says that even post the Supreme Court order revoking the ban, it might take a good three-five months before iron ore is actually made available.
If the ban is not lifted, they may be forced to shut down owing to unavailability of raw material, he says. Remember that these high-power furnaces take months to regain capacity once shut down.
Goyal says that import of iron ore is an option, but is currently unviable considering the cost at global markets.
Below is the edited scription of the transcription. Also watch the accompanying video.
Q: By when do you expect a decision on mining?
A: CEC is aware of the problem faced by the industry and they have assured that they will start mining soon to address the problem. CEC, in its report, submitted to the Supreme Court on March 13 recommended that category A mines, where there is no illegality or very minor illegality, should be started as soon as possible.
At the same time, CEC have categorised mines in four categories. Category phase 1