JSW Steel outbid others in the ongoing tenders for Odisha’s iron ore mines to win two mine blocks while ArcelorMittal won one block.
JSW Steel outbid sister concern Jindal Steel, along with Vedanta, ArcelorMittal to win Nuagaon iron ore block at 95.20pc premium of the sale value of mineral to the state government. The net reserves of the block is estimated at 790mn mt. JSW won another tender for Narayanposhi iron and manganese ore mine with reserves of around 187mn mt at a premium of 98.55pc.
ArcelorMittal India has won the Thakurani iron ore block in Odisha at 107.55pc premium of the sale value of ore to the state government, according to local media. The iron ore block has an estimated reserve of 179mn mt.
Steel and other metal producers in India are competing against each other in closely fought tenders for mining rights in the state of Odisha, which accounts for 50-55pc of the country’s 210mn mt iron ore production. Mining leases of around 30 of Odisha’s mines are scheduled to expire on March 31, 2020. Odisha invited tenders for mining rights for 20 iron ore and manganese blocks on Dec 6, 2019.
In early January, India amended its mining laws for coal allowing steel and power companies to sell surplus coal from their captive mines in the open market without end-user restrictions. Steel producers expect the Indian government to extend the ‘hybrid licenses’ regime for iron ore mines as well, thereby allowing steel producers to divert part of the iron ore production from captive mines to other ventures.