In the state of Karnataka, the 8 A grade mines operational at the moment contribute to 13-15 million tons of iron ore production.
JSW Steel, which requires about 23 million tons of iron ore annually, to meet with its capacity, has planned to import about 5 million tons of the iron ore to continue its operations at both Salem (Tamil Nadu) and Dolvi, near Mumbai (Maharashtra) as they are located near to port.
Both the plants account to a total capacity of 4.3 million tons per annum in total i.e. Salem is 1 mtpa (near to Tuticorin) and Dolvi (near to JNPT) is 3.3 mtpa.
It contributes to about 30% of its total production which is 14.3 mtpa.
JSW was sourcing iron ore from Karnataka
Though, the company has planned to import 5 mtpa annually, rest depends on factors such as landed cost of the imported raw material, supply in Odisha and Jharkhand and availability of cargoes.
JSW has already imported some quantity of the raw material from Australian and South American countries at Tuticorin and JNPT port due to shortage of the material for around a couple of years now.
With hopes of B grade mines becoming operational the next month, on Supreme Court's decision, they would add 8 million tons of iron ore supply.
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