JSW Steel , one of India's leading steel producers, has taken a significant step towards enhancing its raw material security by incorporating a new joint venture company for an iron ore project in Andhra Pradesh.

Joint Venture Details

JSW Steel has partnered with Andhra Pradesh Mineral Development Corporation Limited (APMDC) to form APJSW Private Limited, a joint venture company incorporated on August 25. The new entity, with its registered office in Vijayawada, Andhra Pradesh, will spearhead the Konijedu Marlapadu Integrated Iron Ore Project.

Ownership Structure

The joint venture showcases a strategic partnership between the private and public sectors:

APMDC's 11% stake is held as free ride equity.

Project Objectives

The primary objectives of this joint venture include:

1. Setting up the Konijedu Marlapadu Integrated Iron Ore Project in Andhra Pradesh
2. Mining and beneficiating low-grade iron ore
3. Replacing imported iron ore usage for JSW Steel
4. Reducing costs for the company

Project Details

• Investment: The project is set to be established at a cost of ₹1,075.00 crore
• Production Capacity: Expected to produce approximately 1.3 million tons of beneficiated iron ore concentrate per annum
• Impact: The project aims to replace imported iron ore, potentially resulting in significant cost savings for JSW Steel

Financial Aspects

• Authorized Capital: ₹15,00,000 divided into 1,50,000 Equity Shares of ₹10 each
• Initial Subscription: JSW Steel has made an initial subscription of ₹89,000 for 8,900 equity shares at face value

Regulatory Compliance

The formation of this joint venture complies with the Securities and Exchange Board of India (SEBI) regulations, with the company making the necessary disclosures under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This strategic move by JSW Steel underscores the company's commitment to vertical integration and cost optimization in its operations. By securing a domestic source of iron ore, JSW Steel aims to reduce its dependence on imports and strengthen its position in the competitive steel market.

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.