India’s leading integrated steel producer, JSW Ltd, recorded a sharp increase in its captive iron ore production in FY’21, SteelMint data shows. The company produced around 21.6 million tonnes (mn t) of iron ore in FY’21 from its nine ‘C’ category mines in Karnataka and four iron ore mines in Odisha. In FY’20, its iron ore production was recorded at around 4.1 mn t.
With the increase in its captive iron ore production, the steelmaker’s iron ore sourcing from the merchant market dropped 19% to 19.43 mn t in FY’21, against 24 mn t seen in FY’20.
The sourcing figures mentioned are for its Vijaynagar, Dolvi & Salem works:
JSW Steel’s merchant iron ore sourcing
Quantity in tonnes
Provisional data
Source: SteelMint
Capacity additions to boost captive iron ore production
On 31 Mar’21, JSW Steel commenced production of hot-rolled plates from the new 5 mn t per annum (pa) hot strip mill at its Dolvi Works, the company reported in its BSE filing. In addition, it also commenced production from its 1.2 mn t pa wire rod mill at its Vijaynagar works.
Increased iron ore requirement, after doubling its capacity at Dolvi, led JSW Steel to enhance production from its three captive mines in Odisha. Company officials informed SteelMint that, while the Narayanaposhi mine will be expanded to 10 mntpa from the present 6 mntpa, Gonua will be expanded to 3.9 mntpa compared to the present EC limit of 1.2 mntpa.
However, Nuagaon is slated to undergo a mammoth capacity expansion to 20 mntpa from the current 5.62 mntpa. Provided the grades and mineral reserves tick all the right boxes, SteelMint expects the steel major to keenly participate in the upcoming auctions of virgin iron ore blocks in Odisha.
The company reported a 6% year-on-year (y-o-y) drop in its crude steel output to 15.08 mn t in FY’21.
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