JSW Steel has decided to withdraw its plans to surrender an iron ore mine in Odisha, which it had acquired through auction in 2020, citing current demand and supply dynamics of the raw material in the country as the reason for the decision.
The announcement was made in an exchange filing on November 16.
In September, JSW Steel formally submitted a notice for the surrender of the mining lease pertaining to the Jajang Iron Ore Block, situated in the Keonjhar district of Odisha. It was among the four iron ore mining leases the company acquired in 2020.
JSW Steel secured the rights to this mine in 2020, surpassing competitors such as Adani, JSPL, Rungta Mines, Serajuddin & Co, Lal Traders, and Eastern Mining, as reported by various media outlets.
The withdrawal of the mine closure plan come as the company deals with rising raw material costs. Last month, the company’s Managing Director Jayant Acharya flagged a rise in iron ore prices in September and October.
In a post-earnings call with analysts, Acharya said that the company has won seven more iron ore mines across Karnataka, Maharashtra, Goa and that the steelmaker will participate in other mine auctions in various states. Currently, JSW Steel has six operationalized iron ore mines in Karnataka, according to the company's website.
The company reported a 12 per cent rise in its consolidated crude steel production to 23.12 Lakh Tonnes (LT) in October as demand remains robust due to a spike in infrastructure and construction projects.
The Sajjan Jindal-led steel giant reported a net profit of Rs 2,773 crore in the second quarter of 2023-24 as an uptick in government spending on infrastructure projects coupled with narrowing costs bolstered margins. The company had reported a net loss of Rs 925 crore in the same quarter a year ago.
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