JSW Steel Bags Three Iron Ore Mines
JSW Steel Ltd informed the stock exchanges that it has bagged three iron ore mines in Odisha, with a combined estimated capacity of around 1.09 billion tonnes. The three mines are Nuagaon, Narayanposhi, and Ganua.
The auctions were held by the Govt of Odisha on 31st January 2020, 1st February 2020 and 4th February 2020. JSW Steel’s final bidding offer was based on the percentage of average monthly prices of iron ore of different grades and quality. The prices were in tally with the grade and quality of ores as per the Indian Bureau of Mines.
The percentage assigned to three iron ores as per the Indian Bureau of Mines are:
– 95.20% for Nuagaon iron ore mine
– 98.55% for Narayanponshi iron ore and manganese mine
– 132% for Ganua iron ore mine
JSW Steel is a flagship company of the JSW Group, owned by Sajjan Jindal, and an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA). Sajjan Jindal had recently met Chief Minister Naveen Patnaik at the state secretariat to discuss his investment plan in Odisha. The company has proposed to set up a new steel plant near Paradip in Jagatsingpur district.
Earlier the shares of JSW Steel had fallen to 1.60% to Rs 283.45. In the four trading sessions before the announcement, JSW steel’s stock had dropped by 3.48%.
Notably, numerous analysts have stated that the aggressive bidding is expected to continuously crowd out merchant miners besides potentially resulting in higher iron ore price. This would benefit the big players like JSW and SAIL.