India’s 2nd largest private sector steel making company-JSW Steel is in talks with Sandur Manganese & Iron Ore Mines (SMIORE) for long term iron ore supply agreement.
“We are going to have a long-term tie-up with them (Sandur Manganese) for supply of iron ore. They have a capacity of 1.6 MnT pa now, but they can reach up to 3 MnT pa,” Mr Vinod Nowal, Deputy Managing Director of JSW Steel said.
“Discussions are still going on and we want to tie-up for the entire 3 MnT,” he added.
A senior official from Sandur Manganese said in condition of anonymity that it was in talks with JSW Steel but said no decision has been reached until now.
JSW Steel annual iron ore requirement ramps up to 30-31 MnT
JSW Steel earlier had installed crude steel capacity of 14.3 MnT pa which got upgraded to 18 MnT pa by end of FY16. Thus the steel biggy needs around 30-31 MnT iron ore annually.
In last fiscal, the steel maker procured 21.8 MnT iron ore. Out of which major share of 86% (18.7 MnT) was sourced from Karnataka e-auctions. The balance amount came from imports, NMDC Chhattisgarh, Odisha and Goa e-auctions.
Out of 1.03 MnT iron ore sold by SMIORE in FY16, nearly 39% was sourced by JSW Steel.
JSW Steel – a prospective bidder for Karnataka mine block auction
JSW Steel devoid of its captive iron ore mines is likely to remain a potential bidder in Karnataka mine block auctions whose events are to start in Jun’16. DMG Karnataka is to auction 14 “C” category mine blocks in Jun’16. Owing to logistical advantages and high net worth are some factors that will favour JSW Steel in mine block auctions.
JSW Steel aims to produce 15.75 MnT crude steel in FY17
JSW Steel yesterday (on 18 May’16) declared its Q4 FY16 results. 3.21 MnT crude steel was produced in Q4 FY16. The quarter was marked by recommissioning of blast furnaces which were under planned shutdowns for capacity expansions at all three plants namely-Vijaynagar, Salem and Dolvi.
In the fiscal FY16, JSW Steel produced 12.56 MnT crude steel while saleable steel volumes were recorded at 12.13 MnT in the same time span.
The steel giant aims to produce 15.75 MnT (up by 25% Y-o-Y) crude steel in FY17 and guidance for saleable steel sales has been set at 15 MnT (up by 24% Y-o-Y).
-Partially sourced
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