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Ore shortage likely to halt steel production at JSW

The 10 million tpa plant at Bellary employs 30,000 people
Last Updated 27 September 2011, 18:10 IST
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The production has come down drastically over the past two months due to non-availability of ore. The Supreme Court, on July 29, ordered suspension of mining and ore transport in the district. The JSW, with an annual production of 10,000 million tonnes, is the highest producer of steel in the country.

The plant requires 60,000 tonnes of ore per day against the present availability of about 7,000 tonnes. The ban on mining and ore transportation has hit the production badly over the past three months.

While only 27,000 tonnes of steel was produced in July, the quantity has come down drastically in August and September. This week, the plant has produced only 7,000 tonnes, Dr Vindo Nowal, the chief executive officer of JSW told Deccan Herald.

Limited options

The ore now has to be sourced through e-auctioning from the mines of National Mineral Development Corporation (NMDC) at Donimalai in Sandur taluk. “But even the quantity available there is not sufficient to meet our demand. Of the six blast furnaces in the plant, steel is being produced at only one furnace,” he said. In addition, regulations restrict transportaion of ore from NMDC mines after dusk. Mining operations at these mines too have come to a halt for the past three days.

With no other go, the management has decided to halt production, Nowal added.
As many as 30,000 employees work at the JSW Steel set up in 1994. The production could be sustained only if the Supreme Court, the Union and State governments take necessary steps to ensure supply of ore, he said.

Nowal further said the attempts to source ore from the mines in Odisha too have failed due to non-availability of rakes for transportaion.

About 4,800 tonnes of ore could be transported in a rake and even if one rake of ore is received per day, it still doesn’t meet the plant’s demand. Transportation costs would render the ore purchase dearer.

Sour ore

*  It requires 60,000 MT of ore per day
*  Present availaibility is 7,000 MT per day
*  Ore from NMDC through e-auctioning only source
*  Purchase from Odisha not feasible

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(Published 27 September 2011, 07:23 IST)

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