JSW Steel Ltd, India's second largest steel producer in terms of installed production expect 'B' grade mines to resume operations soon. A formal decision to restart the mines is expected on April 18 by Supreme Court,after which the mining companies will slowly speed up the capacity.
“It all depends on the starting of category B mines. Once that happens, we can expect our capacity utilisation to go beyond 80%,†said Sheshagiri Rao, group chief financial officer, JSW Group.
Category B is expected next week which could help the company see some increase in production and hence financials too, said Mr Rao.
Although if other local sources based in Karnataka are believed, it will take time to actually get the production from 'B' grade mines.
“Even if 'B' grade mines get official confirmation from Supreme Court, actual production will take at least 8-10 months, if we consider past track records.” said an executive with a mining company based in Karnataka.
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