JSPL to Commence Mining at Kasia Iron Ore Block

SEATTLE (Scrap Monster): Jindal Steel and Power Limited (JSPL) announced that it plans to begin mining at Kasia iron ore block within a month. The company had won the Kasia iron ore and dolomite block in the state of Odisha with total reserves of 278 million tonnes (MT) in the recently held auction process, following tough competition from bidders including Tata Steel, Essel Mining, Rungta, MSPL, ArcelorMittal and Electrosteel.

V.R. Sharma, Managing Director, JSPL provided details on starting operations at the mine. Since it is an already operational mine, it expects to commence mining within a month, further to receipt of all required statutory approvals. JSPL will not have to seek fresh environmental clearance for the iron ore block, he said.

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The company plans to put up a slurry pipeline from the Barbil region to its steelmaking facility in Angul, which in turn would further reduce its logistics cost. The high-quality captive mine will ensure raw material security to JSPL. The Kasia block would help the company with approximately 5-6 million tonnes of iron ore per annum. It must be noted that the company has agreed to pay a premium of 118.10 per cent for the sale or transaction of iron ore from the block.

The iron ore block is strategically located at around 17 kilometres from its pellet plant in Barbil.