JSW Steel gains on bagging Jajang iron ore block in Odisha

JSW Steel rose 1.55% to Rs 262.80 after the company said on Monday it has been declared as a preferred bidder for an iron ore mine in Odisha.

The projected iron ore resource in this mine as per tender documents is 39.4 million tonnes.

JSW Steel said it has got a communication from the Director of Mines for the Jajang iron ore block of Keonjhar district. The auctions were held by the state government on 6 February 2020.

The highest final offer price by the company to become a preferred bidder is 110% of average monthly prices of iron ore of different grades and quality published by Indian Bureau of Mines in Odisha from time to time.

"The company will take all requisite steps as per the tender document to obtain a letter of intent, all statutory clearances, execute mine development and production agreement (MDPA) and start the mining operations, it said in a statement.

Last week, JSW Steel had informed that it it has emerged as preferred bidder for three iron ore mines (viz. Nuagaon iron ore mine, Narayanposhi iron & manganese ore mine, Ganua iron ore mine) in Odisha, with an estimated reserves of 1,092 million tonnes. The estimated iron ore resources of the aforesaid mines are around 1091.835 million tonnes (MT), it added.

JSW Steel is a flagship company of the JSW Group, an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA).

On a consolidated basis, its net profit slumped 87% to Rs 211 crore on a 12.1% drop in net sales to Rs 17,416 crore in Q3 December 2019 over Q3 December 2018.

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