Mining scenario in K’taka will improve in 2-3 months: Jindal
JSW Group Chairman Sajjan Jindal on Thursday said the mining scenario in Karnataka would improve in next two to three months.
Bangalore: JSW Group Chairman Sajjan Jindal on Thursday said the mining scenario in Karnataka would improve in next two to three months following Central Empowered Committee recommending the Supreme Court that some mines in some districts could be opened up.
"Shortage of ore in Karnataka is getting resolved and the mines are getting operationalise. We expect things to improve in next two to three months," he told reporters on the sidelines of Global Investors Meet (GIM) 2012 here.
Jindal said that JSW`s 10 million tonnes per annum (MTPA) Vijayanagar plant in Karnataka is currently running at 85-90 per cent capacity and expects to increase running capacity to 100 per cent once mines are opened up.
JSW Steel has been hit by a severe shortage of iron ore as the Supreme Court banned mining in three districts (Bellary, Chitradurga and Tumkur) of Karnataka last July and August to prevent further ecological damage. Since then, the company has met its requirement by buying ore in court-mandated auctions.
Continuous shortage of iron ore had forced Jindal to state that JSW Steel may close Karnataka plant on input shortage in September last.
"We may have to shut entirely (Vijayanagar plant)... There is a good possibility of that (closure) if the situation does not improve," Jindal had stated.