JSW Steel, a major player in the steel industry, has opted to retract its initial plans of surrendering an iron ore mine in Odisha, a decision influenced by the prevailing dynamics of supply and demand for raw materials in the country. This strategic move was disclosed in an official filing on Thursday, emphasizing the company’s adaptability to the evolving conditions of the raw material market.
The decision to surrender the mining lease for the Jajang Iron Ore Block in Odisha’s Keonjhar district, acquired through an auction in 2020, was officially communicated in September. This particular mine was one of four iron ore leases obtained by JSW Steel in the same year.
JSW Steel outpaced notable competitors such as Adani, JSPL, Rungta Mines, Serajuddin & Co, Lal Traders, and Eastern Mining to secure rights to the Jajang Iron Ore Block, as reported by various media outlets at the time of acquisition. The successful bid underscored JSW Steel’s competitive edge in navigating the complexities of the auction process.
The decision to reverse the plan to close the mine aligns with JSW Steel’s proactive approach in response to the challenges posed by escalating raw material costs. With iron ore prices on the rise in September and October, as highlighted by the company’s Managing Director Jayant Acharya in a post-earnings call with analysts, retaining control over essential raw material sources becomes a strategic imperative.
The Managing Director revealed that JSW Steel has successfully acquired seven additional iron ore mines spread across Karnataka, Maharashtra, and Goa. Currently, JSW Steel operates six operational iron ore mines in Karnataka, as per information available on the company’s website, reflecting a diversified geographical presence in the mining sector.
