Jindal Steel and Power Limited (JSPL) is on course to acquire the Guali iron ore mine in Odisha and is waiting for the letter of confirmation from the State government to proceed.
The mine was involved in a court case which was withdrawn by the petitioner recently, clearing the path for JSPL.
In February 2020, JSPL had emerged the highest bidder for 198.7 mn mt located less than 30km away from its Barbil Pellet plant. The company had bid a premium of 144pc on the base price. The company claims that this mine will make them 100pc self-reliant in iron ore.
The company is expecting the iron ore prices to come down in near term. Hot-rolled coil (HRC) prices are back to the pre-COVID levels and have been hiked by Rs2,000/mt in last few weeks while flat steel prices rose by Rs1,000-1,500/mt.