Plagued by inadequate iron ore supply,JSW Steel’s capacity utilisation at 10 million tonnes per annum Vijaynagar facility may remain at the current level of 80 per cent for the remaining period of FY13,an official said today.
“For the next six-eight months,the capacity utilisation will remain at 80 per cent,at least for the current fiscal,” JSW Steel’s Chairman and Managing Director Sajjan Jindal said.
A ban on mining in Karnataka for over a year till the partial lifting a month ago played a havoc on the local steel makers who were forced to cut their production capacity for want of the key steel making raw material.
“We are awaiting the opening up of the mines. It is likely to take six-eight months from now for normalisation of production of iron ore in Karnataka. Once that happens,we will go up,” Jindal said.
The Supreme Court,in a directive issued in July,2011,had suspended all the mining activities in the Bellary re ion of the southern state. However,last month,the apex court had lifted ban on 18 leases,subject to certain conditions.
Following the restrictions on mining,JSW Steel had in late September last year stated that it was “compelled” to cut production to 30 per cent.
JSW Steel sources about 50 per cent of its iron ore need from the Bellary region which together with Hospet area of the state contribute around 80 per cent of the state’s iorn ore production.