The steelmakers breathe some fresh air as the Supreme Court on Friday allowed auctioning 1.5 million tons (mt) of iron ore a month.The state-owned miner NMDC was allowed by the Apex Court to mine 1 mt of ore every month and sell it to the local steel manufacturers.
The steel manufacturers in Karnataka where facing high pressure of iron ore shortage after the Apex Court banned the mining activity in bellary, Tumkur and Chitradurga and other mines on finding illegal mining.The country’s total steel production accounts for 66 mt out of which 16 mt comes from Karnataka and require 2.7mt of iron ore every month.
JSW steel, the biggest steel producer in Karnataka admits that they were under pressure of iron ore shortage.The company had been buying ores from Chhattisgarh which results them less profit as of high freight cost."There is a shortfall of the raw material and we are looking at all options to source. We are hopeful once the auction begins, we will be back at 80 per cent," Jayant Acharya, director (sales and marketing), JSW Steel was quoted by Business standard.
According to the Federation of Indian Minerals and Industries (FIMI), the iron ore lying in the stockpile should be sold and they are also concerned about the small steelmakers.
- Umesh Shanmugam
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