JSW Steel achieves crude steel production of 2.96 million tons in Q1FY21; stock dips 1%

The average capacity utilisation dropped to 76% in June 2020 primarily due to a fall in production at Vijayanagar Works where certain employees tested Covid-19 positive.

Jul 03, 2020 01:07 IST India Infoline News Service

JSW Steel Limited achieved crude steel production of 2.96 million tons in Q1FY21. The average capacity utilisation dropped to 76% in June 2020, primarily due to a fall in production at Vijayanagar Works.

The company revealed to the exchanges Friday that at Vijayanagar Works, certain employees tested Covid-19 positive (started with an employee who had travelled far away from plant premises on personal work and got infected). This has led to not only hospitalisation of these employees, and an active contact tracing and quarantining of their primary and secondary contacts, but also an imposition of restrictions by the local administration on the entry and exit of employees at the plant location.

“The company responded promptly and responsibly to control the spread of Covid-19 infection among our workforce and local communities by implementing and intensifying comprehensive prevention and mitigation measures, by leveraging on our existing medical infrastructure and community outreach programme,” a release from the company said.

JSW Steel Ltd is currently trading at Rs192.35 down by Rs2.15 or 1.11% from its previous closing of Rs194.50 on the BSE.

Operationalising iron ore mines in Odisha
The company has been declared as the preferred bidder for four iron ore mines in the State of Odisha, in the auctions held by the State Government in February 2020. The Govt. of Odisha has issued vesting orders in respect of these mining blocks viz:-Nuagaon, Narayanposhi, Jajang and Ganua by virtue of which all valid rights, approvals, clearances, licenses and the like vested with the previous Lessee(s) have been deemed to have been acquired by the company.

The company has signed the Mine Development and Production agreement(s) for all the four blocks and executed the lease deed(s)with Govt. of Odisha after complying with all regulatory aspects. The company has also started mining operations at all the above said blocks from July 1, 2020. 

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