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Apr 18, 2013, 04.15 PM IST | Source: CNBC-TV18

JSW Steel to restart mining at Category B mines in few mths

The Supreme Court (SC) on Thursday lifted a one-and-a-half-year old iron ore mining ban in Karnataka. As per the CEC reports, Category B mines will be allowed to restart mining subject to necessary statutory clearances and completion of relief and rehabilitation work is complete.

The Supreme Court (SC) on Thursday lifted a one-and-a-half-year old iron ore mining ban in Karnataka . As per the CEC reports, Category B mines will be allowed to restart mining subject to necessary statutory clearances and completion of relief and rehabilitation work is complete.

Welcoming the verdict, Vinod Nowal, director & CEO, JSW Steel  said it will take around 1-3 months for the company to start mining at B category mines. "It is a good sign for the industry and iron ore availability will increase by another 6-7 million tonne," he told CNBC-TV18.

Below is the edited transcript of his interview to CNBC-TV18.

Q: With this verdict of opening up of category B mines, how much time will it take to increase iron ore production?

A: Opening up of category B mines is a welcome step. It will take around 1-3 months to start old b category mines. It is a good sign for the industry and iron ore availability will increase by another 6-7 million tonne.

Q: For JSW Steel how will it help in improving the capacity utilisation. What does it stand at currently?

A: So far we were buying low grade material and at the same time importing and buying from other states a higher quote. Now the higher quote material will be replaced with less grade material and this will benefit the industry. 

Q: How much impact would it have on earnings?

A: When we source material form other state we incur a cost of Rs 3,000 as freight against local freight of Rs 500-600. Definitely, there will be benefit.

Q: On an annual basis how much iron ore will the Karnataka state?

A: From B category mine Karnataka will get around 6-7 million tonne on an annual basis.

JSW Steel stock price

On October 31, 2014, JSW Steel closed at Rs 1261.60, up Rs 13.90, or 1.11 percent. The 52-week high of the share was Rs 1365.35 and the 52-week low was Rs 805.00.


The company's trailing 12-month (TTM) EPS was at Rs 124.82 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 10.11. The latest book value of the company is Rs 970.48 per share. At current value, the price-to-book value of the company is 1.30.

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