Nov5, 2011
JSW Steel Ltd, the largest producer in India, continues to be the largest buyer of iron ore at e-auctions in Karnataka. The company, which runs a 10-million-tonne steel plant in Karnataka, has picked up 926,000 tonnes of iron ore (with an iron grade of 62 per cent), about 41 per cent of the ore auctioned at the fifth round of e-auctions held yesterday and on Friday in Karnataka.
“Despite high base prices fixed for the iron ore at Karnataka e-auctions, we purchased iron ore fines with 62 Fe grade. However, problems related to transportation of ore from the respective mines to our plant at Toranagal continues, due to the strict timings set by the monitoring committee,” Vinod Nowal, director and CEO, JSW Steel told Business Standard.
For this week’s auctions, the base price was fixed at Rs 2,300 a tonne, a decline of around 15 per cent over the previous auctions for all grades of ore.
The monitoring committee appointed by the Supreme Court to oversee the conduct of e-auctions, to clear a stockpile of about 25 million tonnes of ore at various mines in Karnataka, released a stock of 2.25 million tonnes for the auctions this week. This was the fifth round in the state to enable mills to source iron ore, a key steel making ingredient.
Of the 2.2 million tonnes put up for auction this week, about 850,000 tonnes were auctioned yesterday and the balance 1.4 million tonnes were auctioned on Friday. With this, the total ore bought by JSW Steel totals 3.4 million tonnes till now in all the auctions put together in the state.
The company, which is running its steel plant at 50 per cent of its installed capacity, requires around 50,000-60,000 tonnes per day, depending on the grade. The company hopes to resume normalcy in production within a month’s time after the resumption of mining activities assuming the Supreme Court lifts the ban on ‘clean’ mining companies, Nowal said.
Kalyani Steel, another producer of steel in Bellary district of Karnataka, purchased about 14,000 tonnes of lumpy ore during both the days of auctions. “We have bought at a landed price of Rs 5,800 a tonne after paying all taxes and royalty. Though the quality of ore auctioned was inferior, we had no choice but to take whatever was available,” said R K Goyal, company’s managing director.
(sourced Business Standard)
JSW Steel Ltd, the largest producer in India, continues to be the largest buyer of iron ore at e-auctions in Karnataka. The company, which runs a 10-million-tonne steel plant in Karnataka, has picked up 926,000 tonnes of iron ore (with an iron grade of 62 per cent), about 41 per cent of the ore auctioned at the fifth round of e-auctions held yesterday and on Friday in Karnataka.
“Despite high base prices fixed for the iron ore at Karnataka e-auctions, we purchased iron ore fines with 62 Fe grade. However, problems related to transportation of ore from the respective mines to our plant at Toranagal continues, due to the strict timings set by the monitoring committee,” Vinod Nowal, director and CEO, JSW Steel told Business Standard.
For this week’s auctions, the base price was fixed at Rs 2,300 a tonne, a decline of around 15 per cent over the previous auctions for all grades of ore.
The monitoring committee appointed by the Supreme Court to oversee the conduct of e-auctions, to clear a stockpile of about 25 million tonnes of ore at various mines in Karnataka, released a stock of 2.25 million tonnes for the auctions this week. This was the fifth round in the state to enable mills to source iron ore, a key steel making ingredient.
Of the 2.2 million tonnes put up for auction this week, about 850,000 tonnes were auctioned yesterday and the balance 1.4 million tonnes were auctioned on Friday. With this, the total ore bought by JSW Steel totals 3.4 million tonnes till now in all the auctions put together in the state.
The company, which is running its steel plant at 50 per cent of its installed capacity, requires around 50,000-60,000 tonnes per day, depending on the grade. The company hopes to resume normalcy in production within a month’s time after the resumption of mining activities assuming the Supreme Court lifts the ban on ‘clean’ mining companies, Nowal said.
Kalyani Steel, another producer of steel in Bellary district of Karnataka, purchased about 14,000 tonnes of lumpy ore during both the days of auctions. “We have bought at a landed price of Rs 5,800 a tonne after paying all taxes and royalty. Though the quality of ore auctioned was inferior, we had no choice but to take whatever was available,” said R K Goyal, company’s managing director.
(sourced Business Standard)
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