JSPL Won Strategic Kasia Block in Iron Ore Auctions

SEATTLE (Scrap Monster): Leading steel producer Jindal Steel and Power Limited (JSPL) announced it has won the Kasia iron ore and dolomite block in the state of Odisha in the ongoing auction process. The other bidders for the block included Tata, Essel Mining, Rungta, MSPL, ArcelorMittal and Electrosteel.

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According to the amended auction rules, JSPL will not have to seek fresh environmental clearance for the block. It must be noted that the block has been operated by Essel Mining until March 2020. JSPL has agreed to pay a premium of 118.1% for the sale or transaction of iron ore from the block.

The company had earlier cited that its Odisha-based steelmaking facilities are facing shortage of iron ore raw material. The winning of the block should help the company meet its increased raw material needs of the 6 million tonnes per annum (Mtpa) steelmaking plant in Angul.

Meantime, the auction bidding process is under progress for the Nadidih iron ore block, for which five companies are competing against each other.

The ongoing auction process is in connection with auctioning of 11 mineral blocks. A total of 123 bids have been received. The auction process is likely to continue until the end of the current month.