Monday, 16 Jan 2012
ET reported that curbs on mining iron ore in Orissa and its movement between states have stymied JSW Steel's proposed INR 35,000 crore steel project in West Bengal, forcing its chairman to seek the intervention of chief minister Ms Mamata Banerjee.
Mr Sajjan Jindal told ET recently that "I have requested Ms Banerjee to look into the issue of inter state transfer of ore. We want market linked access and the CM has promised to take it up with the Centre.”
JSW’s steel cum power project at Salboni has been granted land and coal linkage. It was to source iron ore from private miners in Odisha, but plans went awry when the Mr Naveen Patnaik government clamped down on mining after irregularities came to the fore.
(Sourced from ET)
Showing posts with label Sajjan Jinal. Show all posts
Showing posts with label Sajjan Jinal. Show all posts
Monday, January 16, 2012
Thursday, November 17, 2011
JSW undecided on Mozambique block
Thu,November 17, 2011
Mumbai: JSW Steel had plans to transfer thermal coal mine to the power arm, but the boards have yet to discuss the transfer.
Sajjan JindalJSW Steel had plans to transfer thermal coal mine to the power arm, but the boards have yet to discuss the transfer.
One may call it the curious case of the coal mine in Mozambique for the $7-billion diversified JSW Group.
At a time when its power arm, JSW Energy, is severely hamstrung due to the lack of captive coal resources to fire its thermal power portfolio, analysts and company shareholders are puzzled at the delay in transferring an existing coal mine within group companies.
Two years ago, during launch of the Rs 2,700-crore JSW Energy IPO, Sajjan Jindal, chairman of the group, had said JSW Steel was looking at selling the Mozambique coal mines to group company JSW Energy for Rs 300 crore. The decision was taken after it was discovered the majority of coal in the mine was thermal, more suited for power production.
Steel companies use coking coal. Considering JSW Energy did not possess any captive resources, the Mozambique mines were considered strategic.
But in the last two years, neither board has been able to finalise the transfer of the crucial asset.
When asked, Pramod Menon, CFO, JSW Energy, said the respective boards were yet to take up the transfer. "It is an issue which has to be considered by the boards," he said.
When asked why the two boards hadn’t discussed the issue, he said, "They are two separately-listed entities and one of them has an asset which belongs to them. Today, we have not yet considered the asset from the (JSW) Energy's perspective, nor have we got anything from (JSW) Steel if they would like to sell."
A corporate lawyer, who isn't allowed to speak to the media, said, "Since it is a non-core asset there should not be an issue in the deal, provided both boards agree upon the sale and the pricing, etc."
He said it was normal for companies to have such transactions within group companies. "There are a lot of asset transfers that happen within companies. But they have to take care that the deal is at arms-length."
JSW Energy said there were logistic challenges in Mozambique and the company would look at the merits of the projects before it is offered to them. Sajjan Jindal is the chairman and managing director of JSW Steel, as well as JSW Energy.
JSW Steel also has its own captive power plant of 300 Mw, which would be commissioned soon. The company might be keeping the coal block for their own use, Menon said.
Questions sent to JSW Steel remained unanswered.
An analyst tracking the sector and the company, said, "JSW Energy has been looking to acquire coal assets abroad and the Mozambique coal block transfer was definitely a positive story. However, we are yet to see the two companies make the deal."
Volatile coal prices have been consistently denting the profitability of JSW Energy, as even now the company predominantly relies on spot market deals to source raw material, having no long-term fuel security.
Imported coal prices have risen 30 per cent in the last one year and availability from Indian sources like Coal India have become extremely unreliable.
But what seems more odd is the fact, when the resource crunch is severely hurting the company's growth, there is no work ongoing also to develop the Mozambique mines and they are lying idle.
For the quarter ended September, the company's fuel costs grew 86 per cent on soaring spot coal prices, resulting in a net loss ofRs 109 crore, even as its income grew 18 per cent. A depreciating rupee further hit the company's earnings.
In the last one year, JSW Energy stock was down 60 per cent. On Wednesday it closed at Rs 46.4/share.
However, L K Gupta, deputy managing director, JSW Energy, said the company will definitely spring back to profitability in the third quarter as coal prices were coming down and its various expansion plans were getting commissioned.
Talking about efforts being undertaken to identify new sources of coal. Menon said that there is a drop in coal indexes in North and South America and the company is finding very attractive rates to tie up coal. "In terms of acquisitions, we are still looking out for opportunities. As and when we come across any asset which is making economic sense and in terms of size which we can chew, we will look at it. At this point in time we are evaluating assets but there is nothing that we can talk about.""For acquisitions, the question is what kind of landed cost of coal we are looking and if the acquisition can be a long term one.
Our balance sheet is very strong. Our consolidated net debt gearing is 1.7 times. So, in terms of leveraging and buy-outs it will not be an issue. We can look at an acquisition in the region of $250-$500 million," Menon added. Earlier this year, the company made a failed attempt at buying Canadian coal miner CIC Energy's asset in Botswana for $418 million. The company even extended the deadline to complete the deal once but decided to call off the deal. There have been rumours that JSW Energy might bid for New Hope of Australia. However, the company denied the news categorically.
(sourced BS)
Mumbai: JSW Steel had plans to transfer thermal coal mine to the power arm, but the boards have yet to discuss the transfer.
Sajjan JindalJSW Steel had plans to transfer thermal coal mine to the power arm, but the boards have yet to discuss the transfer.
One may call it the curious case of the coal mine in Mozambique for the $7-billion diversified JSW Group.
At a time when its power arm, JSW Energy, is severely hamstrung due to the lack of captive coal resources to fire its thermal power portfolio, analysts and company shareholders are puzzled at the delay in transferring an existing coal mine within group companies.
Two years ago, during launch of the Rs 2,700-crore JSW Energy IPO, Sajjan Jindal, chairman of the group, had said JSW Steel was looking at selling the Mozambique coal mines to group company JSW Energy for Rs 300 crore. The decision was taken after it was discovered the majority of coal in the mine was thermal, more suited for power production.
Steel companies use coking coal. Considering JSW Energy did not possess any captive resources, the Mozambique mines were considered strategic.
But in the last two years, neither board has been able to finalise the transfer of the crucial asset.
When asked, Pramod Menon, CFO, JSW Energy, said the respective boards were yet to take up the transfer. "It is an issue which has to be considered by the boards," he said.
When asked why the two boards hadn’t discussed the issue, he said, "They are two separately-listed entities and one of them has an asset which belongs to them. Today, we have not yet considered the asset from the (JSW) Energy's perspective, nor have we got anything from (JSW) Steel if they would like to sell."
A corporate lawyer, who isn't allowed to speak to the media, said, "Since it is a non-core asset there should not be an issue in the deal, provided both boards agree upon the sale and the pricing, etc."
He said it was normal for companies to have such transactions within group companies. "There are a lot of asset transfers that happen within companies. But they have to take care that the deal is at arms-length."
JSW Energy said there were logistic challenges in Mozambique and the company would look at the merits of the projects before it is offered to them. Sajjan Jindal is the chairman and managing director of JSW Steel, as well as JSW Energy.
JSW Steel also has its own captive power plant of 300 Mw, which would be commissioned soon. The company might be keeping the coal block for their own use, Menon said.
Questions sent to JSW Steel remained unanswered.
An analyst tracking the sector and the company, said, "JSW Energy has been looking to acquire coal assets abroad and the Mozambique coal block transfer was definitely a positive story. However, we are yet to see the two companies make the deal."
Volatile coal prices have been consistently denting the profitability of JSW Energy, as even now the company predominantly relies on spot market deals to source raw material, having no long-term fuel security.
Imported coal prices have risen 30 per cent in the last one year and availability from Indian sources like Coal India have become extremely unreliable.
But what seems more odd is the fact, when the resource crunch is severely hurting the company's growth, there is no work ongoing also to develop the Mozambique mines and they are lying idle.
For the quarter ended September, the company's fuel costs grew 86 per cent on soaring spot coal prices, resulting in a net loss ofRs 109 crore, even as its income grew 18 per cent. A depreciating rupee further hit the company's earnings.
In the last one year, JSW Energy stock was down 60 per cent. On Wednesday it closed at Rs 46.4/share.
However, L K Gupta, deputy managing director, JSW Energy, said the company will definitely spring back to profitability in the third quarter as coal prices were coming down and its various expansion plans were getting commissioned.
Talking about efforts being undertaken to identify new sources of coal. Menon said that there is a drop in coal indexes in North and South America and the company is finding very attractive rates to tie up coal. "In terms of acquisitions, we are still looking out for opportunities. As and when we come across any asset which is making economic sense and in terms of size which we can chew, we will look at it. At this point in time we are evaluating assets but there is nothing that we can talk about.""For acquisitions, the question is what kind of landed cost of coal we are looking and if the acquisition can be a long term one.
Our balance sheet is very strong. Our consolidated net debt gearing is 1.7 times. So, in terms of leveraging and buy-outs it will not be an issue. We can look at an acquisition in the region of $250-$500 million," Menon added. Earlier this year, the company made a failed attempt at buying Canadian coal miner CIC Energy's asset in Botswana for $418 million. The company even extended the deadline to complete the deal once but decided to call off the deal. There have been rumours that JSW Energy might bid for New Hope of Australia. However, the company denied the news categorically.
(sourced BS)
Saturday, October 29, 2011
Jindals' Salboni project faces iron ore crisis
Sat,Oct29,2011 |TNN
KOLKATA: Supply crunch of iron ore has cast a shadow on Bengal's showpiece project - Sajjan Jindal's integrated steel and power plant at Salboni in West Midnapore.
JSW officials have informally requested the state to help them procure iron ore from National Mineral Development Corporation's mines in Orissa and Jharkhand. JSW Bengal got three coal blocks in state dispensation route, Kulti, Ichapur and Sitarampur in Raniganj belt and the estimated combined reserve is over 600 million tonne.
Incidentally, the project is also facing land hurdle as mutation for the entire land (4,334 acres) is still pending. The company officials would meet state industries minister Partha Chatterjee and West Bengal Industrial Development Corporation (WBIDC) managing director Nandini Chakraborty on Saturday where the issue is likely to be discussed.
However, the only silver lining is that NMDC has not ruled out the possibility of limited iron ore linkage for the project. JSW Group is now planning to set up a 3 million tonne steel plant and a 300 MW power plant with an investment of Rs 20,000 crore in the first phase. NMDC chairman and MD, Rana Som, told TOI that it has got a couple of mines in Orissa where the production is not fully tied up. It has also got prospecting license for a big mine in Jharkhand. "There is no request so far from JSW for its Bengal project. We are supplying iron ore to other JSW projects," he added.
It's not only the JSW Group alone. Several other steel firms across the country have been facing iron ore shortage for the last few months. The Vijaynagar plant of JSW Steel is running at less than 50% of installed capacity of 10 million tonne.
Incidentally, WBIDC had sought clarification from JSW Bengal Steel regarding issues relating to the size of Salboni project for sourcing iron ore in September. JSW Group had given a reply to that letter
a couple of days ago. There were indications that WBIDC would start processing necessary clearances for Salboni project once it receives the clarifications. However, sources added that some grey areas still remained even after the reply.
JSW made this request to the state after the WBIDC asked it to specify how it would source iron ore and location of handling and
whether it is planning to set up any pallet plant in Bengal. It has also raised question about the location of the power plant proposed by JSW Bengal Steel. "The power plant was originally planned in Andal. As per the the approved feasibility report, the capacity of the Salboni project would be 6 million ton. The Expert Committee of Steel of the state government approved this quantity earlier," a source said.
(sourced TOI)
KOLKATA: Supply crunch of iron ore has cast a shadow on Bengal's showpiece project - Sajjan Jindal's integrated steel and power plant at Salboni in West Midnapore.
JSW officials have informally requested the state to help them procure iron ore from National Mineral Development Corporation's mines in Orissa and Jharkhand. JSW Bengal got three coal blocks in state dispensation route, Kulti, Ichapur and Sitarampur in Raniganj belt and the estimated combined reserve is over 600 million tonne.
Incidentally, the project is also facing land hurdle as mutation for the entire land (4,334 acres) is still pending. The company officials would meet state industries minister Partha Chatterjee and West Bengal Industrial Development Corporation (WBIDC) managing director Nandini Chakraborty on Saturday where the issue is likely to be discussed.
However, the only silver lining is that NMDC has not ruled out the possibility of limited iron ore linkage for the project. JSW Group is now planning to set up a 3 million tonne steel plant and a 300 MW power plant with an investment of Rs 20,000 crore in the first phase. NMDC chairman and MD, Rana Som, told TOI that it has got a couple of mines in Orissa where the production is not fully tied up. It has also got prospecting license for a big mine in Jharkhand. "There is no request so far from JSW for its Bengal project. We are supplying iron ore to other JSW projects," he added.
It's not only the JSW Group alone. Several other steel firms across the country have been facing iron ore shortage for the last few months. The Vijaynagar plant of JSW Steel is running at less than 50% of installed capacity of 10 million tonne.
Incidentally, WBIDC had sought clarification from JSW Bengal Steel regarding issues relating to the size of Salboni project for sourcing iron ore in September. JSW Group had given a reply to that letter
a couple of days ago. There were indications that WBIDC would start processing necessary clearances for Salboni project once it receives the clarifications. However, sources added that some grey areas still remained even after the reply.
JSW made this request to the state after the WBIDC asked it to specify how it would source iron ore and location of handling and
whether it is planning to set up any pallet plant in Bengal. It has also raised question about the location of the power plant proposed by JSW Bengal Steel. "The power plant was originally planned in Andal. As per the the approved feasibility report, the capacity of the Salboni project would be 6 million ton. The Expert Committee of Steel of the state government approved this quantity earlier," a source said.
(sourced TOI)
Tuesday, May 10, 2011
JSW Steel April production up 11 pc at 5.60 lakh tonnes
Tuesday 10 May 2011, 1:27 PM
New Delhi, May 10 (PTI) Sajjan Jindal-led JSW steel today reported 5.60 lakh tonnes of crude steel production for April, 2011, up 11 per cent over the corresponding month last fiscal.
The low cost domestic steel producer also saw an increase of 13 per cent in output of flat products at 3.92 lakh tonnes during last month as compared to April, 2010, the company said in a statement.
As far as long products are concerned, a 10 per cent growth was recorded in April 2011 at 1.16 lakh tonnes, compared to an year-ago period.
Crude steel is the first product derived from solidification of liquid steel, it said.
Flat products are used for ship building, pipes, automotive body panels, white goods, etc, while long products like bars, rods, wires, structural shapes and rails, etc, are mainly used in construction industry.
On annual basis, its crude steel production for 2010-11 had stood at 6.51 million tonnes (MT), showing a growth of 9 per cent over the previous fiscal, while flat rolled products output was recorded at 4.94 MT, up 33 per cent from the production in 2009-10, it added.
Production of long products was recorded at 1.13 MT during the period, up 18 per cent over 2009-10.
The company is likely to become one of the largest steel makers in the country with the commissioning of 3.2 MT per annum (MTPA) blast furnace at its Vijaynagar plant in Karnataka.
At present, the company has a steel making capacity of about 7.8 MTPA at its Vijaynagar and Salem units.
After the new capacity addition, JSW will be able to produce 14.3 million tonnes per annum (MTPA) of steel as a result of its acquisition of 41.29 per cent stake in loss-making Ispat Industries that has a capacity of about 3.3 MTPA.
JSW Steel scrip was trading at 897 on the Bombay Stock Exchange this afternoon, up 0.04 per cent over its previous close.
The company belongs to JSW group, part of the O P Jindal Group that has diversified interest in mining, carbon steel, power, industrial gases, port facilities, aluminium, cement and Information Technology.
(sourced from PTI)
New Delhi, May 10 (PTI) Sajjan Jindal-led JSW steel today reported 5.60 lakh tonnes of crude steel production for April, 2011, up 11 per cent over the corresponding month last fiscal.
The low cost domestic steel producer also saw an increase of 13 per cent in output of flat products at 3.92 lakh tonnes during last month as compared to April, 2010, the company said in a statement.
As far as long products are concerned, a 10 per cent growth was recorded in April 2011 at 1.16 lakh tonnes, compared to an year-ago period.
Crude steel is the first product derived from solidification of liquid steel, it said.
Flat products are used for ship building, pipes, automotive body panels, white goods, etc, while long products like bars, rods, wires, structural shapes and rails, etc, are mainly used in construction industry.
On annual basis, its crude steel production for 2010-11 had stood at 6.51 million tonnes (MT), showing a growth of 9 per cent over the previous fiscal, while flat rolled products output was recorded at 4.94 MT, up 33 per cent from the production in 2009-10, it added.
Production of long products was recorded at 1.13 MT during the period, up 18 per cent over 2009-10.
The company is likely to become one of the largest steel makers in the country with the commissioning of 3.2 MT per annum (MTPA) blast furnace at its Vijaynagar plant in Karnataka.
At present, the company has a steel making capacity of about 7.8 MTPA at its Vijaynagar and Salem units.
After the new capacity addition, JSW will be able to produce 14.3 million tonnes per annum (MTPA) of steel as a result of its acquisition of 41.29 per cent stake in loss-making Ispat Industries that has a capacity of about 3.3 MTPA.
JSW Steel scrip was trading at 897 on the Bombay Stock Exchange this afternoon, up 0.04 per cent over its previous close.
The company belongs to JSW group, part of the O P Jindal Group that has diversified interest in mining, carbon steel, power, industrial gases, port facilities, aluminium, cement and Information Technology.
(sourced from PTI)
Wednesday, March 9, 2011
Iron ore duty hike will temper steel price rise - Mr Sajjan Jindal
Wed, 09 Mar 2011 By BL
Mr Sajjan Jindal vice chairman and MD of JSW Steel said that though coking coal and iron prices are on a high, any further hike in steel prices could hurt demand in the country and that the budget proposal to increase the iron ore export duty to 20% should alleviate some concerns and lead to drop in prices of around INR 1,000 a tonne in the next two three months.
Mr Jindal said that “With the economy and manufacturing sectors growing rapidly, demand is bound to grow, but the ability to absorb further price hikes is limited and prices will rise in the short-term. But the Government has done a very good thing by proposing the export duty on iron ore at 20%. It will increase availability of iron ore for domestic companies and prices could come down by as much as INR 1,000 a tonne over the next 2 to 3 months.”
Subscribe to:
Posts (Atom)
Posts
