JSW Steel plans to bid for iron ore blocks in Karnataka

NEW DELHI Wed Apr 24, 2013 1:02pm IST

Related Topics

Stocks

   

NEW DELHI (Reuters) - JSW Steel Ltd (JSTL.NS) plans to bid for iron ore mining blocks in Karnataka that could go up for auction after a Supreme Court order last week, as the country's third-largest steel producer looks to cut its dependence on costly imports.

JSW and rivals such as Essar Steel have been forced to import iron ore due to a ban on mining in two states of India, once the world's third-largest iron ore exporter that is expected to be a net importer this year.

"We will surely bid," Seshagiri Rao, joint managing director of JSW Steel, told Reuters. "How many we will bid for depends on the details of the auction process."

He said the company might have to keep importing iron ore, the main raw material for making steel, until domestic production ramps up.

India's top court last week canceled the leases of 49 iron ore mines in Karnataka because they were mining illegally. It said they may be assigned to the highest bidder among end-users.

JSW already has an iron ore joint venture in Karnataka with a production capacity of 2.5 million tonnes per year. The company has the capacity to produce more than 14 million tonnes of steel products per year, mainly for the domestic market. (Editing by Sunil Nair)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Indian Markets

Indian Markets

Nifty marks record high, tracks higher global shares.  Full Article 

Tracking Asia

Tracking Asia

Asian shares hitch a ride on Wall Street's record  Full Article 

Commodities

Commodities

Gold near two-month low; set for weekly drop on interest rate fears  Full Article 

RBI Annual Report

RBI Annual Report

RBI reiterates commitment to bring down inflation .  Full Article 

Monsoon Update

Monsoon Update

Monsoon to display lull as floods ease.  Full Article 

Regulatory Troubles

Regulatory Troubles

U.S. regulator alleges Dr Reddy's breached packaging rules  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage