JSW Steel may cut output on iron ore shortage

Bengaluru : JSW Steel is likely to take production cuts at its 10 million tonne per annum (mtpa) steel plant at Toranagal in Bellary district of Karnataka owing to severe shortage of iron ore, the key raw material to make steel. The company, which completed the expansion of its steel plant from 7 mtpa to 10 mtpa with the commissioning of its 3 mtpa blast furnace, may operate its blast furnace and corex plants at lower capacity. It had invested Rs 14,000 crore on expansion.

“Our Toranagal plant presently needs 45,000 metric tonnes of iron ore per day to operate the 7 mtpa. We get 20,000 tonnes per day now. Once we reach the rated capacity of 10 mtpa, we will require 67,000 tonnes per day. However, the availability of ore may go down further after the Supreme Court appointed team completes resurvey of the remaining 55 mines," said Vinod Nowal, chief executive officer and director, JSW Steel.