In FY 2019-20, we acquired six additional iron ore mines in Karnataka and four iron ore mines in Odisha, resulting in a cumulative acquisition of 13 iron ore mines.
In FY 2020-21, we operationalised all the newly acquired mines, which have started significantly contributing to our raw material security. With this we have embarked on completely integrated steel manufacturing operations, guarded against input price fluctuations. JSW Steel remains well-positioned to drive value-chain efficiencies and support its massive capex plan on the back of the captive iron ore mines. We also have a coal block at Moitra, and cumulatively have over captive power capacity of 1,029 MW, enhancing our overall backward integration focus.
Director (Commercial and Marketing)
Operationalising Odisha mines for a winning edge
Sustainability remains at the heart of our mining work. A carefully crafted mining action plan across our Odisha mines is complemented and furthered by our well-monitored, multi-disciplinary team with utmost earnestness. The plan is designed to bring in economic, environmental and social development, and substantially fuel mine economics. We expect enhanced operational efficiency, safety, utilisation of low-grade ore and digitalisation of the entire mineral value chain by way of these integrations. Ecological management and overall performance improvements undergo regular evaluations at our Odisha mines.
Across our mines, diverse environmental measures, such as dry fog systems, regular/fixed water sprinkling, rainwater harvesting, plantation of native species and afforestation for biodiversity are being actively adopted. While overburden dumps are scientifically stabilised, followed by their reclamation and rehabilitation to create a self-sustaining ecosystem, hazardous wastes are responsibly stored and disposed off with authorised vendors, in accordance with government regulations. To mitigate climate change, the mines have been tracking and reducing their electricity and diesel consumption, apart from undertaking large-scale afforestation activities with the cooperation of State Forest Department and local communities.
Within the domain of logistics, we prioritise maximum transportation of ore through railways and planned slurry pipeline. This is line with our goal of reducing traffic on the village roads and ensuring the security of adjacent communities, bringing down GHG emissions ecological impact.
JSW Foundation has transformed lives for countless people and several communities of Odisha. We work to remain in touch with the afflictions of local communities and actively identify needs through participatory rural appraisal processes. Accordingly, we design development projects in collaboration with local NGOs and SHGs.
In Karnataka, the mines we acquired through auctions included Category-C mines, where previously boundaries had stretched beyond their permitted lease limits. Further, the Indian Council of Forest Research and Education (ICFRE), who had done a macro level environment impact assessment of Bellary, noted “severe and significant damage to environment” in its reports.
As JSW Steel assumed control of the mines, we undertook a scientific R&R methodology, in line with ICFRE and government suggestions. The R&R plans straddled the following objectives:
1
To carry out time bound reclamation and rehabilitation of the areas under illegal mining
2
To ensure scientific and environmentally sustainable mining
3
To ensure compliance with standards stipulated under the environment / mining statutes
4
Regular and effective monitoring, evaluation and corrective measures
Before the operationalisation of mines, we undertook large-scale R&R actions aligned to the above objectives, including capex for systems to control dust suppression, fugitive emissions, water usage and ecosystem impact.
These interventions, designed for long-term sustainability and viability of mines, are over and above the statutory compliances.
Note: If there is an instance of closure of mines, it will be done as per the standard guidelines issues by the Government of India
Since July 2020, all mines have been operationalised and in FY 2020-21, they collectively produced around 12.37 MnT of iron ore, which have been directed to our three integrated steel plants. Currently, we are exploring ways in which the production can be ramped up from the mines. Further, we are exploring setting up of beneficiation plant to upgrade the iron ore fines that the plants can operate with. We are also exploring setting up a slurry pipeline to efficiently transport the concentrate for pellet manufacturing at Paradip.
01
Unhindered mineral production without any gestation period or uncertainty associated with greenfield projects
02
Significant cost competitiveness in terms of early production, reduced logistics cost and value addition by virtue of long-term planning
03
Assured feed grade for steelmaking
04
Reduced dependence on external iron ore procurement
The Odisha iron ore production scenario remains buoyant, with private miners and Odisha Mining Corporation (OMC) ramping up production, with the support of the State Government.
Logistics are becoming more streamlined, even as supply bottlenecks remain with regard to rake allocation and truck unloading at ports. To mitigate these challenges, JSW Steel has planned the laying of a 324 km long slurry pipeline from Barbil to Paradip. JSW Steel is keen to ramp up mineral production from its mines in Odisha, achieve cost competitiveness and leverage on digital technologies to achieve an end-to-end optimisation from its mine-to-mill.
We are currently undertaking the enhancement of own mining infrastructure at Odisha to reduce reliance on outsourced mining. With a total project outlay of `3,450 crore, we are also including grinding and washing facilities to improve the quality of the ore, aiding higher productivity at the steel-making operations. The enhancements will also be done with a strong digital overlay.
1135 MnT
Total iron ore reserves in Odisha
We continue to focus on backward integration by investing in our resource base to secure critical raw materials. We believe that securing critical raw materials, either for sale in the global market or for direct use in our production, will help protect us from variations in raw material prices.
We have acquired coking coal mines in West Virginia, U.S. and have also acquired coal mining concessions in Mozambique.
We also secured the ‘Moitra’ coking coal block located in Jharkhand via an auction process in April 2015, which has a total extractable coal reserve of approximately 30 MnT. This is expected to further enhance our raw material security and lead to integrated and efficient operations. The mine is expected to be operational by the end of FY 2021-22.
