Wednesday, Aug 03,
JSW Steel has started sourcing iron ore from NMDC’s Bailadila mines in Chhattisgarh to maintain production at its plant near Bellary, Karnataka.
JSW has tapped alternative sources to secure iron ore supplies following the Supreme Court ban on mining in Bellary district on environmental grounds.
“We have started supplying two to three rakes of iron ore daily, amounting to 8,000-10,000 tonnes from Chhattisgarh to JSW Steel,” said Mr S. Thiagarajan, Director Finance at NMDC Ltd, the country’s largest miner.
JSW Steel is one of NMDC’s large customers in Karnataka. The annual supplies from NMDC’s Donimalai mines to the JSW Steel plant were about 2.5 million tonnes. The Supreme Court ban has restricted the iron ore supplies.
JSW, which has iron ore stocks for about a week, is reportedly looking to source the raw material from states such as Goa, Orissa and Jharkhand as well.
“There is a lot of pressure to source ore. They are even willing to take the iron ore from Chhattisgarh to their plant in Salem,” Mr Thiagarajan said.
NMDC has also started iron ore supply from Chhattisgarh to Kudremukh Iron Ore Company Ltd (KIOCL)’s pellet plant near Mangalore. KIOCL is also among top NMDC’s client in Bellary. “We are supplying two rakes daily to KIOCL,” Mr Thiagarajan added.
Source: The Business Line
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