These three mines are Nuagaon, Narayanposhi and Ganua, the steel major said in a regulatory filing.
JSW Steel has been declared as the preferred bidder received from the Director of Mines, Odisha for three iron ore mines (i.e. Nuagaon Iron Ore Mine, Narayanposhi Iron & Manganese Ore Mine, Ganua Iron Ore Mine) Saturday, 15 February 2020, the company said.
The auctions were held between 31 January and 4 February 2020. “The estimated iron ore resources of the aforesaid mines are around 1091.835 million tonnes (MT),” it added.
The company said it will take all requisite steps as per the tender document to obtain Letter of Intent, all statutory clearances, execute Mine Development and Production Agreement (MDPA) and start the mining operations. The disclosure was made after market hours on Monday, 17 February 2020.
In a separate announcement on Monday, JSW Steel said that the National Company Law Appellate Tribunal (NCLAT), has by its order dated 17 February 2020, allowed the appeal of JSW Steel for acquiring Bhushan Power and Steel (BPSL).
According to media reports, a two-member bench headed by chairman justice S J Mukhopadhaya, said that JSW Steel will be immune from the acts done by the former promoters of BPSL. However, it also said that prosecution against the former promoters under the money laundering act by the Enforcement Directorate can continue. It has also rejected the petitions filed by operational creditors, seeking higher claims.
The bench reportedly said that the EBITDA (earnings before interest, tax, depreciation and amortization) earned by BPSL during its Corporate Insolvency resolution period will be given to JSW Steel.
On a consolidated basis, its net profit slumped 87% to Rs 211 crore on a 12.1% drop in net sales to Rs 17,416 crore in Q3 December 2019 over Q3 December 2018.
JSW Steel is a flagship company of the JSW Group, an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA).
Shares of JSW Steel fell 1.60% to Rs 283.45. The stock has fallen 3.48% in four trading sessions.
On the technical front, the stock’s RSI (relative strength index) stood at 38.352. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading between its 50-day moving average (DMA) placed at Rs 288.16 and its 100-DMA placed at Rs 274.21.
