With Indian state-run miner, NMDC Limited suspending mining operators at its Donimalai iron ore mines in southern state of Karnataka, JSW Limited is gearing up to meet the impending raw material shortage through a combination of sourcing from neighboring state of Odisha, imports and increased production from captive mines, company sources said on Thursday, November 22.
He said that JSW’s 12 million mt steel mill located in Vijayangar, Karnataka requires an estimated 20 million mt of iron ore per year of which around 5 million mt per year is sourced from NMDC’s Donimalai mines while the balance is sourced from mines in neighboring Odisha and imports.
JSW is now gearing up to contract additional volumes from mines in Odisha and explore import options subject to right prices, to meet the shortfall in supplies from the now suspended Donimalai mines, he added.
JSW currently has one captive iron ore mines in Karnataka producing about 700,000 mt per year and the company is pushing ahead to rapidly bring into production two additional captive mines around this month end which will yield an additional 2 million mt of iron ore to bridge the supply gap following the closure of NMDC mine, he said.