JSW Steel plans to acquire an iron ore terminal in Tamil Nadu

 

NEW DELHI (Scrap Monster): This is based on the company’s move to integrate its operations backward, and at the same time the company is also planning to save cost by importing the key raw material. The company, Sical logistics, operates an iron ore terminal, which has a capacity of 6 million tonnes of iron ore per year, and the mill is located at the government owned, Ennore Port.

 

 The existing infrastructure of the iron ore terminal can be further expanded, so that the terminal can handle 12 million tonnes of iron ore per year, in order to meet the growing volumes. The JSW Steel, which is owned by Sajjan Jindal, is highly depending on imported iron ore, as the company doesn’t own any iron ore mines in the country, and the availability of the steel making raw material in India is declining as the court has imposed constraints over the iron ore production in the mines, in order to prevent illegal mining. The company imports about half of its iron ore requirements, which is 20 million tonnes per year.

 

 According to the analysts, Sical Logistics, is a good option for JSW Steel, V.G Siddhartha Hedge, the company which is better known as the promoter of the Café Coffee Day, which also own the majority of shares in the Sical Logistics, is in charge with the discussions regarding the sale. The spokesperson, of Sical logistics, declined to comment regarding the matter, and stated that, the company is not looking for media attention at this phase of the discussion.

 

 The Executives of JSW Steel stated that, the company is planning to negotiate hard on the deal. Sical Logistics had spent about 360 crore on building the terminal in the first phase of 6 million tonnes capacity, and the company will require another 120 crore to expand the capacity of the terminal to 12 million tonnes. JSW Steel had built an iron ore jetty, with a capacity 10 million tonnes for 180 crore, in Goa. And also a iron ore terminal of 20 million tonne capacity based in Ratnagiri, for 700 crore