Increase in Karnataka iron ore mining cap brings relief to steel firms

Not only would availability improve, but it would cut transportation costs

The increase in the cap on iron ore mining in Karnataka brings relief for the state’s steelmakers such as JSW Steel, Kalyani Steel, Kirloskar Ferrous, as well as smaller steel producers and pipe manufacturers, as they stand to benefit on account of increased availability of the input used in steelmaking. The Supreme Court’s decision on Thursday means the miners in the state can now extract 35 million tonnes (mt) of iron ore a year, against 30 mt earlier, an increase of 17 per cent. 

The limited availability of iron ore has been a cause of concern for the state’s steelmakers. So