Sajjan Jindal, Chairman and Managing Director of JSW Steel is hopeful that the firm may improve its productivity and capacity utilisation as iron ore mining operation resumes gradually in Karnataka. Jindal said this at the company’s Annual General Meeting.
The company expects that with the sale of sub-grade ore, the iron ore quality may improve in the coming months and this would enable the firm ramp up capacity utilisation.
The firm had to cut its production and with that capacity utilisation at its Vijaynagar plant had to be reduced significantly owing to the mining ban in Karnataka earlier.
But the Supreme Court allowed resumption of mining operations in 18 Category “A” mining leases in September 2012 and in April 2013, it allowed resumption of all mining operations in the remaining Category ‘A’ mines and Category ‘B’ mines with certain riders. Additionally, sale of sub-grade iron ore was also allowed by the apex court.
JSW Steel today said it expects to clock better capacity utilisation in the coming days with the gradual resumption of iron ore mines in Karnataka.
The firm had to contend with additional challenges on account of a mining ban in Karnataka which significantly constrained iron ore availability during the year, Jindal told shareholders.
He said profitability of the company also got impacted owing to poor growth of steel and rising imports during the last fiscal.
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