JSPL spurts after receiving mining license for Kasia mine in Odisha

Jindal Steel & Power (JSPL) gained 1.02% to Rs 369.80 after the company received grant of mining lease from the Government of Odisha for Kasia Iron & dolomite mine.

JSPL said it has been declared as the preferred bidder for the mine at a premium of 118.10%. The Kasia Mine has a large resource of 278 million tonnes of iron ore and it consists of an average Fe grade of approx. 62.5%. The mine has favourable lumps to the fine ratio of 20:80. The mine also has an Environmental Clearance (EC) of 7.5 MTPA.

The Kasia iron ore mine was earlier owned and operated by Essel Mining & Industries. JSPL can resume operations in a short period of time enhancing backward integration for the company in the current financial year itself. This large & high-quality captive iron ore mine provides significant raw material security to JSPL. The e-auction for Kasia Iron & dolomite mineral block was held on 18 September 2021.

VR Sharma, MD of JSPL said, Kasia is a high Fe and low alumina mine, which is located only 17 km away from our Barbil pellet plant. The company has a current crude steel capacity of around 9 MTPA and plans to expand the capacity to 16 MTPA by FY25. Access to this large captive iron ore source, therefore, provides a massive strategic advantage to the company. The company already has plans to use a slurry pipeline from the Barbil region to Angul which will further reduce the logistics cost. There would not be any significant CAPEX requirement, except for statutory payment, as the mine was already operational.

JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors. The company's consolidated net profit declined 73.5% to Rs 41.81 crore on a 62.8% rise in net sales to Rs 10,628.80 crore in Q1 FY22 over Q1 FY21.

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