JSW Steel chooses to keep ownership of iron ore mine in Odisha

17 Nov 2023 , 02:47 PM

JSW Steel has decided to call off plans to sell an iron ore mine in Odisha that it obtained through an auction in 2020, citing current demand and supply dynamics in the nation as the basis for the decision.

The company announced the same in an exchange filing on November 16.

JSW Steel formally submitted a notice of surrender of the mining lease related to the Jajang Iron Ore Block in Odisha’s Keonjhar district in September. It was one of four iron ore mining licenses purchased by the business in 2020.

According to different media sites, JSW Steel obtained the rights to this mine in 2020, beating over contenders such as Adani, JSPL, Serajuddin & Co, Lal Traders, Rungta Mines, and Eastern Mining.

The mine closure plan has been withdrawn as the firm contends with increased raw material costs.  Last month, the company’s Managing Director, Jayant Acharya, predicted that iron ore prices will climb in September and October.

In October, the business recorded a 12% increase in consolidated crude steel output to 23.12 Lakh Tonnes (LT), as demand remained strong owing to an increase in infrastructure and development projects.

At around 2.43 PM, JSW Steel was trading at Rs 769.50, against the previous close of Rs 769.15 on NSE. The counter plunged to an intraday low of Rs 767.60.

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