According to JSW, as the stock pile of 25 million tonnes was getting exhausted,
the quality of iron ore being offered in E-auction is deteriorating
substantially. Further certain iron ore in E-auctions contained high Alumina,
Silica, Manganese and Low Fe, which led to poor Sinter quality, high slag
formation and low productivity in the Blast Furnaces.
The company further stated that the quantity of iron ore
sold in the E-auction during the entire month of February was only 1.17 million
tonnes in all six E-auctions together, compared to the industry requirement of
three million ton per month.
Even after paying higher prices in E-auctions, the
availability of quality iron ore is a challenge, threatening the continuation
of steel production efficiently. Steel Industry in Karnataka region, therefore,
is not only facing shortage of iron ore but poor quality of iron ore is
impacting the equipment, productivity and efficiency.
Since the Central Empowered Committee recommended opening up
a clean mines (Category A), the company expects that the Supreme Court will
permit mining at least in Category A mines, it said.
Joint Managing Director and Group CFO Seshagiri Rao said,
“The Crude steel production during February was severely impacted due to
usage of inferior grades of iron ore.”
Source: Nasdaq
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