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JSW Steel may source iron ore from merchant miners for Odisha plant

Steel major open to bidding for iron ore blocks offered by the state govt

Jayajit Dash  |  Bhubaneswar 

JSW Steel

The Sajjan Jindal-led is likely to buy from merchant miners in to cater to the requirement of its 10 million-tonne-per-annum (mtpa) plant and a pellet unit proposed in the state. The company has pegged its annual requirement for the two facilities at 30 million tonnes.
"has initiated discussions with a few merchant producers in They are looking to secure long-term raw material supplies for their proposed greenfield plant", said a source close to the development.

JSW Steel, however, refused to comment on the development. A questionnaire sent via e-mail went unanswered.

The steelmaker is looking at multiple options to firm up supplies. It is also open to bidding for blocks offered by the government. was interested in winning the bid for two reserves that were put to with integrated plant as an end-use. Essar and Bhushan Steel, both facing insolvency proceedings, have emerged as preferred bidders for the two blocks.

Previously, JSW Steel, in a communication with the state government, had sought a long-term linkage pact with the state-run Mining Corporation (OMC). The company has asked for an agreement, running up to 50 years, for the supply of 30 million tonnes of fines at the Indian Bureau of Mines (IBM) declared prices. has suggested that the OMC may engage a mine developer-cum-operator (MDO) on a long-term basis to develop its large mines like Gandhamardhan and Dubuna.

But OMC, which currently produces around 5-6 million tonnes of each year, is constrained to meet the entire ore requirement projected by The mining company also has long-term supply commitments towards and other end-use industries in

In Odisha, Essar Steel, Visa Steel, Jindal & Power Ltd (JSPL), Bhushan Ltd and MMTC promoted Neelachal Ispat Nigam Ltd (NINL) are among the industries buying from OMC through long-term linkage. Tata is also examining the possibility of clinching a long-term pact with OMC to secure for its Kalinganagar plant. On a trial basis, the steelmaker has signed an agreement with OMC that will remain valid for one year.

has pledged an investment of Rs 50,000 crore on the plant and associated facilities. The company has asked for around 4,500 acres of land for the integrated project to be set up close to To optimise raw material costs, has committed an investment of Rs 3,700 crore on a slurry pipeline for transporting 30 million tonnes of each year from Joda to Both the project and the slurry pipeline have been approved by the High-Level Clearance Authority (HLCA), which is the apex body to clear investments in

First Published: Tue, September 26 2017. 19:30 IST