Usha Martin decided against aggressive bidding for Kathautia

Usha Martin today said it decided against "aggressive bidding" for Kathautia coal block, which was with the firm earlier, due to lack of economic rationale for sponge iron making at winning bid rate of Rs 2,860/tonne.
However, it asserted that alternative arrangement for fuel procurement would be made.
On the second day of coal auction yesterday, Aditya Birla group flagship Hindalco Industries pipped others by bidding Rs 2,860 per tonne for this mine situated in Jharkhand.
"Subsequent to de-allocation of coal mines by the Supreme Court, on February 15, 2015 the company participated in e-auction of Kathautia coal block (in Jharkhand) which is being operated by the company till March, 2015," Kolkata-based Usha Martin said in a filing to BSE.

The company further said that at the last bid value of Rs 2,860 per tonne, it took a deliberate decision of not being part of such aggressive bidding "for the same not having economic justification for DRI (Directly Reduced Iron or Sponge Iron) making."
It said that it would make alternative arrangements for procurement of coal in short to medium term.
The company "would continue to have long term focus on and to work to secure, cost effective and continuous availability of key raw materials as part of its business approach," it said.
The government has put on auction 19 coal mines in the first lot. Till now the companies--B S Ispat, Sunflag Iron and Steel, CESE, Hindalco Industries, GMR and Reliance Cement--have won one mine each.