JSW Steel Limited , one of India's leading steel producers, has received a substantial demand notice of ₹1,472.69 crore from the Government of Odisha for mining dues related to the Jajang Iron Ore Block in Keonjhar district. The notice, which requires payment within 15 days, pertains to a shortfall in dispatch against minimum requirements under mining rules for the period from June 27, 2024, to June 26, 2025.

The company had previously surrendered the Jajang Iron Ore Block due to uneconomic operations, with mining activities ceasing in December 2024. JSW Steel maintains that due legal process was followed in the matter of the block's surrender and plans to pursue appropriate legal remedies against the demand notice in consultation with its legal advisors.

Recent Financial Performance

In its recent quarterly financial results, JSW Steel reported significant improvements:

• Net profit increased to ₹2,184.00 crore, compared to ₹845.00 crore in the same quarter of the previous year.
• Total expenses decreased by 3.3% to ₹40,325.00 crore.
• Revenue remained relatively flat at ₹43,147.00 crore, showing a modest 0.5% increase.
• EBITDA grew by 37.5% to ₹7,576.00 crore, with margins expanding from 12.83% to 17.56%.
• Net debt rose by ₹3,287.00 crore from the previous quarter, reaching ₹79,850.00 crore.

Following these developments, the company's shares closed down 1.70% at ₹1,053.95.

This disclosure was made by JSW Steel in compliance with Regulation 30(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

JSW Steel , one of India's leading steel producers, has announced a significant development in its subsidiary's operations. Mivaan Steels Limited, a wholly-owned subsidiary of JSW Steel, has emerged as the successful bidder in a recent coal block auction conducted by the Ministry of Coal, Government of India.

Auction Details

The auction was for the Rajgamar Dipside (South of Phulakdih Nala) Coal Block located in the state of Chhattisgarh. Mivaan Steels Limited secured the coal block with a winning bid of 31.50% of the National Coal Index (NCI) pricing. This percentage represents the highest final offer made by the company during the auction process.

Next Steps

Following this successful bid, JSW Steel has outlined the next steps for its subsidiary:

1. Obtain a Letter of Intent from the Ministry of Coal
2. Secure all necessary statutory clearances
3. Execute the Coal Mine Development and Production Agreement (CMDPA)
4. Initiate mining operations at the secured coal block

Implications for JSW Steel

This acquisition is expected to strengthen JSW Steel's raw material security, potentially leading to more efficient and cost-effective steel production. The company's move to secure its own coal resources aligns with its strategy to enhance vertical integration and reduce dependence on external coal suppliers.

Regulatory Compliance

JSW Steel has duly informed the National Stock Exchange of India Ltd. and BSE Limited about this development, in compliance with the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company acknowledged a slight delay in disclosure, attributing it to delayed communication from its subsidiary.

As JSW Steel proceeds with finalizing the contract and initiating mining operations at the Rajgamar Dipside coal block, industry observers will be keen to see how this acquisition impacts the company's operational efficiency and overall performance in the competitive steel sector.