JSW Steel Secures Goa Iron Ore Block, Italian Unit Signs Deal

JSW Steel, a leading Indian steelmaker, has made significant strides in its mining and international operations. The company has been declared the preferred bidder for the Codli Mineral Block XII in Goa, a move that strengthens its domestic iron ore resources.

In a regulatory filing announced on November 19, JSW Steel stated that it had received a communication from the Directorate of Mines & Geology, Government of Goa, confirming its status as the preferred bidder. The company secured this position by offering a compelling bid price of 92.60% of the mineral's value.

The Codli Mineral Block XII is estimated to hold substantial iron ore reserves, with projected resources of 48.5 million tonnes and an additional 2.7 million tonnes in existing dumps. JSW Steel is now poised to initiate the necessary procedures to obtain a Letter of Intent and acquire the requisite statutory clearances. Upon securing these approvals, the company will execute a Mine Development and Production Agreement (MDPA) and commence mining operations.

On the international front, JSW Steel's Italian subsidiary, JSW Steel Italy SrL, has entered into a commercial agreement with Metinvest Adria S.p.A. This agreement, following an earlier memorandum of understanding with the Ministry of Industries and Made in Italy, pertains to the transfer of rights to Metinvest for a specific area within the property owned by JSW Steel Italy Piombino SpA.

As part of this transaction, Metinvest is obligated to pay a release fee of €30 million to JSW Steel Italy Piombino SpA. However, the completion of the deal is contingent upon Metinvest fulfilling certain conditions stipulated by the government and relevant institutions within a specified timeframe.

This strategic move aligns with the broader objective of modernizing the Piombino steel production facility. The Accordo Di Programma, a comprehensive plan aimed at revitalizing the site, encompasses upgrades to rolling mills, the establishment of a hardening facility, and an increase in rail production length to 120 meters.

The collaboration between JSW Steel, the Ministry of Industries and Made in Italy, and various government institutions underscores the collective effort to transform Piombino into a thriving steel hub. By securing the Goa iron ore block and advancing its international operations, JSW Steel reinforces its position as a key player in the global steel industry.

JSW Group is a leading conglomerate with diversified business interests across steel, energy, infrastructure, cement, and more. It is recognized for its significant contributions to the Indian economy, with a focus on innovation, sustainability, and expansion. The company operates globally, driving growth through strategic investments, technological advancements, and commitment to environmental responsibility.