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Odisha mineral block auction: Jindal Steel gets official nod for Kasia mine

Odisha mineral block auction: Jindal Steel gets official nod for Kasia mine

JSPL has been declared as the preferred bidder for the Kasia Iron and dolomite mine at a premium of 118.10%

The e-auction for Kasia Iron and dolomite mineral block was held on September 18 where JSPL bagged iron ore block The e-auction for Kasia Iron and dolomite mineral block was held on September 18 where JSPL bagged iron ore block

Jindal Steel & Power Limited (JSPL) has received the official communication from the Odisha government for the grant of mining lease of the Kasia Iron and dolomite mine situated in the state.

JSPL has been declared as the preferred bidder for the mine at a premium of 118.10%. The Kasia Mine has a large resource of 278 million tonnes of iron ore and it consists of an average Fe grade of approx. 62.5%.

"The mine has an Environmental Clearance (EC) of 7.5 MTPA," the company said in a statement.

The e-auction for Kasia Iron and dolomite mineral block was held on September 18 where JSPL bagged iron ore block.

Also Read: JSPL board approves plan to raise $1 billion

The state received 123 bids for the 11 mineral deposits. Major players in the race included Jindal Steel and Power Limited, Adani, JSW, Tata Steel, ArcelorMittal, Essel Mining and Industries Limited, Rungta Mines Ltd, MSPL, Vedanta and NMDC

The Kasia iron ore mine was earlier owned and operated by Essel Mining & Industries Limited.

"JSPL can resume operations in a short period of time enhancing backward integration for the company in the current financial year itself. This large & high-quality captive iron ore mine provides significant raw material security to JSPL," the company added.

Commenting on the development VR Sharma, Managing Director, JSPl said, "Kasia is a high Fe and low alumina mine, which is located only 17 km away from our Barbil pellet plant. The company has a current crude steel capacity of around 9 MTPA and plans to expand the capacity to approx. 16 MTPA by FY25."

"Access to this large captive iron ore source, therefore, provides a massive strategic advantage to the company. The company already has plans to use a slurry pipeline from the Barbil region to Angul which will further reduce the logistics cost. There would not be any significant CAPEX requirement, except for statutory payment, as the mine was already operational," he added.

Also Read: Jindal Steel aims to become net debt free; grow capacity to 27 MT