JSW Steel buys low-grade Goa iron ore through auction

Sajjan Jindal-led JSW Steel has bought 11,484 tonnes of low-grade iron ore from Goa to ensure uninterrupted supply for its 3-mtpa steel plant at Dolvi in Maharashtra.
According to Goa mines directorate's website, the company bought fines in an auction conducted on May 12 at a price ranging between Rs 1,830 and Rs 1,970 per tonne amounting to Rs 214.35 lakh.
Anil Agarwal-led Sesa Sterlite also participated in the third round of auction.
A JSW Steel spokesperson said the fines are meant for the company's Dolvi steel plant, which earlier belonged to Ispat Industries. Later, JSW Steel bought it and subsequently, Ispat Industries was renamed as JSW Ispat.

Indian steel firms mostly lack necessary technology to use fines for iron making and use lump variety or superior grade of iron ore for the purpose. Goan miners used to mainly expor to China.
JSW Steel has a 4-mtpa pellet plant at Dolvi. It will bring fines through the sea route to make pellets.

JSW Steel's participation in the auctioning of Goa ore would help it to tide over the gaps that were to accrue from last week's stay order by the Supreme court on mining of 26 leases in Odisha, sources said.
The Supreme Court had on October 5, 2013 stopped mining, transportation and export of iron ore in Goa following a report of irregularities by the Justice M B Shah Commission.

However, it lifted the ban last month, but capped annual output at 20 million tonnes. On November 11, 2013, the apex court allowed e-auctioning of nearly 11.48 million tonnes of extracted iron ore lying unused in Goa.
About 1.62 million tonnes of iron ore had been auctioned in two rounds till now and approximately Rs 260 crore realised from it.