India's JSW Steel Limited, the country's third largest steel producer, will operate its 10 million mt per year Vijayanagar plant at full capacity within the next two months, expecting higher supplies of iron ore from mines in the southern Indian province of Karnataka where its facility is located, a company official said on Thursday, July 5.
The JSW plant was currently being operated at 80 percent capacity utilization owing to shortage of iron ore, caused by the complete ban on iron ore mining in Karnataka.
In 2010, India's Supreme Court imposed a ban on iron ore mining in the provinces of Karnataka and Goa in the wake of widespread illegal mining.
However, the Supreme Court-appointed Central Empowered Committee (CEC) on Wednesday, July 4 approved reclamation and rehabilitation (R&R) plans for eight mines charged with minor violations of mining laws and granted permission for the resumption of operations.
Another seven mines were expecting approval of their R&R plans by the CEC and a total of 15 mines were expected to resume operations by the end of next month.
According to government officials, approvals from the CEC will gradually increase and could lead to the re-opening of 50 mines in Karnataka over the next six months resulting in an additional supply of 15 million mt of iron ore available to steel plants in the region.
JSW Steel, in which Japan-based JFE Steel has a 15 percent equity holding, has been sourcing its iron ore requirements to maintain production through e-auction conducted under supervision of the courts.