JSW Steel to operate Bellary plant as Supreme Court partially lifts mining ban
08 Aug 2011
JSW Steel will operate its plants at Bellary in south India at about 80 per cent capacity, following a Supreme Court order that partially lifted iron ore mining ban in Karnataka state to allow state-owned NMDC to continue its mining operations.
"In view of the partial relief granted by the Honourable court, JSW Steel plans to operate its plants at present at around 80 per cent capacity with an expectation of further relief in the availability of ore from the Honourable Supreme Court of India to enhance the capacity utilisation beyond 80 percent," India's number three steel-maker said in a statement.
JSW Steel Ltd, belonging to JSW group that is a part of the O P Jindal Group, is one of the lowest-cost steel producers in the world. Japan's JFE Holdings owns 14.8 per cent stake in the firm.
"It is heartening to note that the Honourable Supreme Court of India in its order dated August 5, 2011, permitted NMDC to mine one million tonnes of iron ore per month from its two mines commencing from August 6, 2011," it said.
On Friday, India's Supreme Court partially lifted an iron ore mining ban imposed last week in Karnataka by allowing state-run NMDC to mine up to 1 million tonnes per month of the steel-making ingredient from August 6. (See: Supreme Court allows limited mining by NMDC in Bellary)
NMDC, which produces about 15 per cent of country's iron ore, mines about 6 million tonnes of iron ore annually from the Bellary region, the report added.
