JSW Steel Ltd. has made the strategic decision to surrender one of its iron ore blocks in Odisha, citing economic unviability of operations. The steel giant formally submitted a notice of surrender for the mining lease on September 1, 2023, in accordance with the applicable legal provisions. This development pertains to the Jajang Iron Ore Block, situated in the Keonjhar district of Odisha, out of the total of four mines under the company’s purview.
The surrender of the Jajang Iron Ore Block is contingent upon approval from the government, as stated in an official exchange filing by the company on a recent Friday. Notably, JSW Steel had previously communicated its intention to surrender this very mine to the state government in 2021 but later withdrew the request.
JSW Steel had secured these four iron ore mining leases in Odisha through a competitive auction process in 2020, demonstrating its commitment to strengthening its raw material security. The decision to relinquish the Jajang Iron Ore Block is part of the company’s strategic reassessment in response to changing economic factors and market dynamics.
Following this news, JSW Steel’s shares exhibited a positive response in the stock market, with a gain of 3.51%. The company’s stock closed at Rs 807 per share on Friday, outperforming the benchmark Nifty 50, which registered a gain of 0.94%. This development reflects the dynamic nature of the mining industry and the company’s proactive approach to optimizing its resource portfolio.
Prasanta Patnaik