Odisha: JSPL Bags Kasia Iron Ore Block

Jindal Steel and Power Limited (JSPL) has bagged the Kasia iron ore and dolomite block in Odisha’s Keonjhar district. The ore was secured at a premium of 118 per cent to the sale value at the latest auction process.

“The mine isn’t cheap but is commercially viable and value-accretive as this is the best iron ore mine in Odisha with high Fe and low alumina ore,” Kapil Mantri, executive vice president and head-strategy, JSPL said to the media.

“The mine has huge strategic importance for JSPL since after this we are over 50 per cent secured for procurement of iron ore,” he added.

The Kasia mining site spans over 194 hectares and was among the 11 mineral blocks for bauxite, iron ore and dolomite announced for auction by the Odisha government.

Other biggies that participated in the auction include Adani Group, JSW Steel, Tata Steel, ArcelorMittal, Essel Mining and Industries Ltd, Rungta Mines Ltd, MSPL, Vedanta and National Mineral Development Corporation (NMDC).

Notably, a large majority of JSPL shareholders have approved the proposal to sell the 96.42 per cent stake the company holds in Jindal Power to Worldone. The deal worth Rs 7,401 crore is expected to conclude by end of the year.

The divestment of JPL is part of JSPL’s strategic objective to focus on its India steel business, in addition to becoming a net debt free company. The deal also augurs well with JSPL’s aim to reduce its carbon footprint as part of its broader ESG objectives.

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