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【Ferro-alloys.com】If informed sources in Odisha Steel and Mines Department are to believed, Sajjan Jindal led JSW Steel, which had surrendered its  Gonua iron ore mines in Sundargarh district due to low grade ore and logistics problems on August 11, may also likely give up its right to Jajanga iron ore block for reason similar to Gonua.

In both the cases, the JSW Steel failed to achieve Model Mine Development and Production Agreement (MDPA) under which the mines owner have to produce at least 80 per cent of the average production of the previous two years.

On August 13, Joda Joint Director of Mines had served a notice to Jajanga iron ore block of JSW Steel citing demand on shortfall in despatch vis a vis the minimum dispatch required under Sub Rule 1 of 12A of Other than Atomic and Hydrocarbon Energy Mineral Concession Rules, 2016.

The JSW Steel, which makes 14 million tonnes per annum (mtpa) of steel without any captive iron mine, bid aggressively and won  4 mines in Odisha with a long-term plan to set up 12 mtpa greenfield steel plant entailing an investment of Rs 50, 000 crore.

The Gonua iron ore block, which is being surrendered by JSW Steel, was won with the committed premium of 132 per cent and has estimated reserves of 118 million tonnes (mt). Currently, the company mines about 0.5 mtpa. The company is learnt to have paid stamp duty of Rs 110 crore for Gonua and a performance guarantee of about Rs 50 crore.

JSW Steel, which has enhanced its production capacity to 18 mtpa now, has now 3 mines in Odisha including Nuagaon iron ore with reserves of 793 mt, Narayanposhi iron ore block with 190 mt deposits and Jajanga block with reserves of 39.42 mt.

Earlier, Odisha Government had debarred  Sociedade De Fomento Industrial Private Ltd, Vishal LPG Industries and Tarama Apartment Private Ltd  from participating in Nadidih Iron Ore Block (BICO), Nadidih Iron Ore and Manganese Block (FEEGRADE) and Teherai Iron Ore and Manganese Block, respectively.

• [Editor:zhaozihao]