JSW to buy Goan ore for its Mah steel plant
MAHESH KULKARNI/BUSINESS STANDARD, Toranagallu | 23 April 2014 20:23 IST
JSW Steel Limited is mulling over the possibility of using iron ore from Goa for its steel plant at Dolvi in Maharashtra.
The company operates a 3.3 million tonne per annum steel plant at Dolvi and requires about 5.5 million tonne iron ore per annum. It currently sources the key raw material from Odisha and Chhattisgarh.
The Supreme Court's recent order on lifting the ban on mining in Goa has revived the hopes of sourcing the raw material from the western India state for the company. However, the company has ruled any possibility of using the Goan ore for its main steel plant at Toranagallu in Karnataka's Bellary district.
'The iron ore produced in Goa is of very low quality as the iron content (Fe) is between 46-50 per cent. There is very limited quantity in the grade of 55-58 per cent. We require 18-20 million tonne per annum for our Karnataka steel plant and due to logistical constraints we cannot use ore from Goa. But, we are thinking of using it for our Dolvi plant in the future,' Vinod Nowal, deputy managing director, JSW Steel Limited said.
The company is currently dependent on iron ore from Chhattisgarh and Odisha for the Dolvi plant, where the material is available at landed cost of Rs 3,600 per tonne.
Nowal said the company is now actively considering over the possibility of procuring the ore from Goa for the sea-shore based plant at Dolvi. It plans to lift the material and transport it through the sea route.
'The iron ore from Goa is of very low grade and it needs to be beneficiated it before using in the steel plant. We need to invest in setting up the beneficiation plant either at Dolvi or Goa itself. We have not worked out the plan yet in this regard. We are thinking on these lines,' Nowal told Business Standard after announcing the launch of its new Cold Rolling Mill (CRM-2), here today.
The government of Goa, following the direction of the Apex Court has begun the sale of 11.5 million tonnes of iron ore already lying at jetties and mine heads. JSW Steel has registered with the mines and geology department to participate in the e-auctions.
'We have tested the samples from the material lying at various jetties in Goa and found that the material was not suitable for our requirement. However, we have information from the miners that there is some quantity with 58% Fe available at mine heads and we are waiting for that material to come to auctions. We will definitely participate and buy that material as and when it comes for auction,' said P K Murugan, Vice President-Commercial, JSW Steel said.
This material, he said will be used at Dolvi plant.
The company expects at least one million tonne of 58% Fe grade at Goa. 'I am of the opinion that by end of May, some quantity of high 'grade iron ore would come for auctions, which we intend to buy and blend it with even higher grade ore and use in Dolvi plant,' he said.
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