JSW Steel gains after winning five iron ore mines in Karnataka

JSW Steel rose 1.01% to Rs 1,792.50 at 9:25 IST on BSE after the company announced that it has been declared a preferred bidder in 5 mines in the auctions for category C mines conducted by state government of Karnataka.

The announcement was made after market hours on Friday, 7 October 2016.

Meanwhile, the S&P BSE Sensex was up 139.83 points or 0.5% at 28,200.97.

On BSE, so far 1,077 shares were traded in the counter as against average daily volume of 76,251 shares in the past two weeks. The stock hit a high of Rs 1,795 and low of Rs 1,783.10 so far during the day.

The auction was conducted during the period 1 October 2016 to 6 October 2016. The estimated resources in these 5 mines as per the tender documents are around 111 million tonnes. The highest final offer price by the company to become a preferred bidder is in the range of 58.9% to 102.52% of average monthly prices of iron ore of different grades and quality published by Indian Bureau of Mines in Karnataka from time to time. The company will take all requisite steps as per the tender documents to obtain letter of intent, all statutory clearances, execute mine development & production agreement (MOPA) and start the mining operations.

On consolidated basis, JSW Steel's net profit jumped 5133.6% to Rs 1109 crore on 2.4% rise in net sales to Rs 11542.38 crore in Q1 June 2016 over Q1 June 2015.

JSW Steel is an integrated steel company with an installed capacity of 18 million tonnes per annum.

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