Date:03/10/2008 URL: http://www.thehindu.com/2008/10/03/stories/2008100357101600.htm

Business

JSW commissions Vijayanagar blast furnace

K. Satyamurty

BANGALORE: JSW Steel has crossed more milestones in its quest to become the second largest steel producer in the country by end of 2010.

To cope with enhanced production of ten million tonnes annually, its Vijayanagar plant near Bellary has commissioned what could be the largest blast furnace in the region, with 1,250 cubic metres capacity.

“We commissioned the furnace within 17 months, against an industry benchmark of 24 months” said Joint Managing Director Y. Siva Sagar Rao. Furnaces in a steel plant need ore to be melted and JSW has explored options beyond its own captive iron ore mines in the Bellary region. Ore is being imported from Australia, though more expensive.

To meet the current needs of 5.50 lakh tonnes, and anticipating future needs, the company had resorted to large scale recycling; using ore ‘fines’ or small particles, once discarded. This recycling also went to reusing the fines of coal and coke for fuel, Mr. Rao explained.

JSW has also sought mining leases in Dhonimalai, not far from the Vijayanagar steel plant. Proximity to mines is a cost advantage, it wants to attain. The mines it can now access have estimated reserves of around 30 million tonnes.

Mr. Rao was optimistic on the global economic situation becoming more stable in the near future. With the expansion of its units in Vijayanagar, Jharkand and Salem, expected to cost Rs 6,300 crore, continued increase of input price and stagnant exports could cost dearly.