JSW Steel To Surrender Mining Lease For Jajang Iron Ore Block Amid Uneconomic Operations
The notice for the lease surrender was submitted on 3 August 2024, and is currently pending necessary regulatory approvals
JSW Steel has disclosed its decision to surrender the mining lease for the Jajang iron ore block in Keonjhar, Odisha, citing "uneconomic operation." This block was one of four iron ore mining leases acquired through an auction in 2020.
The notice for the lease surrender was submitted on 3 August 2024, and is currently pending necessary regulatory approvals.
In its latest financial report, JSW Steel revealed a significant drop in net profit for the quarter ending 30 June. The company reported a net profit of Rs 867 crore, a sharp decline from Rs 2,428 crore for the same quarter the previous year. This decrease was primarily attributed to weaker export market conditions and strong competition from Chinese steel producers.
Despite these challenges, JSW Steel's revenue for the quarter grew by 2 per cent year-on-year to Rs 42,943 crore, compared to Rs 42,213 crore in the previous year.
JSW Steel maintained a robust capacity utilisation rate of 87 per cent at its Indian operations for Q1 FY25, despite the reduction in production.
Headquartered in Mumbai, JSW Steel is a major player in the steel industry and part of the JSW Group. It is the second-largest private sector steel company in India, following mergers with Bhushan Power & Steel, Ispat Steel, and Jindal Vijayanagar Steel.
As of July 2023, JSW Steel has an installed production capacity of 29.7 million tonnes per annum (MTPA) in India and the United States. The company plans to increase this capacity to 38.5 MTPA by the financial year 2025.
Approximately 98 per cent of JSW Steel’s revenue comes from steel and related products, including long rolled products (18 per cent), galvanised coils/sheets (15 per cent), CR coils/sheets (9 per cent), plates/pipes (5 per cent), and other miscellaneous steel products (5 per cent).
Iron ore contributes 2 per cent to the revenue. About 70 per cent of revenue is derived from India, while 30 per cent comes from international markets.
