Odisha High Court is to hear on Jindal Steel & Power Ltd’s (JSPL) plea over liquidation of Iron ore stocks lying at Sarda Mines on 18 Mar’15.
Jindal Steel & Power (JSPL) had filed an affidavit against Odisha government to allow liquidation of Iron ore stocks at Sarda Mines, for which a hearing on 18 Mar’15 is scheduled in Odisha Hight Court. Sarda Mines, which used to be the major source of Iron ore for Jindal Steel, has been closed since Apr’14 owing to lack of necessary clearances.
JSPL’s operational Tensa Mines has a capacity of 2-2.5 MnT pa, but it is is not enough to run their 9 MnT Pellet plant in Barbil (Odisha). Since mining operations were suspended at Sarda Mines, JSPL has been facing shortage of Iron ore and is dependent on merchant miners like Rungta, Serajuddin & OMC to source Iron ore.
It is estimated that Sarda Mines has inventory that amounts to more than 10 MnT. Once JSPL is allowed to liquidate stocks, its requirement for Iron ore for about an year will be met.This might give a big relief to the steel maker in terms of Iron ore sourcing.
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