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Post Supreme Court mining ban in Bellary, JSW Steel Ltd has started sourcing iron ore from Chitradurga and Tumkur districts of Karnataka for its Vijaynagar plant. The company is also sourcing from Orissa and Chhattisgarh.
“We are getting about 20,000 tonnes per day from NMDC in Bellary. The shortfall is being sourced from Orissa and Bacheli in Chhattisgarh,” said Mr Vinod Nowal, Director and CEO, JSW Steel Ltd. He was speaking to reporters on sidelines of Steel Tube Summit, 2011.
“We are operating at 70-80 per cent capacity,” Mr Nowal said while maintaining that JSW Steel had not shut down any furnaces due to disruption in iron ore supplies. However, Mr Nowal said iron ore prices have shot up by Rs 2,000 after the ban.
JSW Steel operates its largest unit, the Vijayanagar Steel plant near Bellary. The company recently fired a new blast furnace which has increased its crude steel production capacity to 10 million tonnes per annum.
The JSW Steel scrip was trading 2 per cent lower in the intra-day trade at Rs 635 on the BSE on Friday. The scrip had hit a 52-week low of Rs 623.80 on August 19.
Mr Nowal said the company would begin work on its proposed10 mtpa integrated steel plant at Salboni in West Bengal in about a month. JSW Steel is investing Rs 35,000 crore in the new plant.
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