Share price of Jindal Steel and Power (JSPL) gained around one per cent on Thursday, September 23, after the infra major was declared the preferred bidder for the Kasia Iron Ore Mine by the Odisha government. On Thursday, Jindal Steel and Power opened on the BSE at Rs 369.10, touching an intra day high of Rs 374, and an intra day low of Rs 369, in the trading session so far.
Jindal Steel received an official communication from the Odisha government for the grant of mining lease of the Kasia Iron and dolomite mine situated in the state, according to a regulatory filing by the company to the stock exchanges today. The company is declared as the preferred bidder for the mine at a premium of 118.10 per cent.
The Kasia Mine has a resource of 278 million tonnes of iron ore and comprises of an average Fe grade of approximately 62.5 per cent, The iron ore mine has favourable lumps to the ratio of 20:80, as per the statement.
The e-auction for the Kasia Iron and dolomite mineral block was held on September 18, 2021. The iron ore mine was earlier operated and owned by Essel Mining & Industries Limited, and Jindal Steel can resume operations shortly, enhancing the backward integration for the company.
“Kasia is a high Fe and low alumina mine, which is located only 17 km away from our Barbil pellet plant. The company has a current crude steel capacity of around ~9 MTPA and plans to expand the capacity to ~16 MTPA by FY25. Access to this large captive iron ore source provides a massive strategic advantage to the company,” said Mr VR Sharma, Managing Director, Jindal Steel and Power.
”The company already has plans to use a slurry pipeline from the Barbil region to Angul which will further reduce the logistics cost. There would not be any significant CAPEX requirement, except for statutory payment, as the mine was already operational,” added Mr Sharma.
Jindal Steel and Power opened on the NSE at Rs 372, touching an intra day high of Rs 374, and an intra low of Rs 369, in the session so far. It was last trading 1.63 per cent higher at Rs 371.90 on the NSE.
Shares of Jindal Steel and Power were last trading 1.43 per cent higher at Rs 371.30 on the BSE.