September28, 2011
India's leading steelmaker JSW Steel has had to reduce its steel production to 30 percent of its capacity at its Vijaynagar plant due to the abrupt disruption of supplies to JSW Steel from Indian state-run mining company National Mineral Development Corporation (NMDC).
The Supreme Court of India first suspended all mining activity in the Bellary district of India's Karnataka state, but then it allowed NMDC to mine iron ore and sell 1 million mt per month. However, JSW Steel stated that NMDC has not yet fulfilled this order even after 50 days.
According to the company statement, due to this artificial shortage of iron ore, raw material prices may increase to unnatural levels. Steel industry in Karnataka region contributes 0.5 percent to India's GDP and provides employment to thousands of people. If steel production does not continue with timely supply of iron ore, the already slowing Indian economy will suffer from loss of steel production in the Karnataka region as well, the statement said.
Tags: raw mat , India , Indian Subcon , Southeast Asia , investments , mining , JSW Steel , South Asia
(sourced steelorbis)
India's leading steelmaker JSW Steel has had to reduce its steel production to 30 percent of its capacity at its Vijaynagar plant due to the abrupt disruption of supplies to JSW Steel from Indian state-run mining company National Mineral Development Corporation (NMDC).
The Supreme Court of India first suspended all mining activity in the Bellary district of India's Karnataka state, but then it allowed NMDC to mine iron ore and sell 1 million mt per month. However, JSW Steel stated that NMDC has not yet fulfilled this order even after 50 days.
According to the company statement, due to this artificial shortage of iron ore, raw material prices may increase to unnatural levels. Steel industry in Karnataka region contributes 0.5 percent to India's GDP and provides employment to thousands of people. If steel production does not continue with timely supply of iron ore, the already slowing Indian economy will suffer from loss of steel production in the Karnataka region as well, the statement said.
Tags: raw mat , India , Indian Subcon , Southeast Asia , investments , mining , JSW Steel , South Asia
(sourced steelorbis)
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