Dubious Policy Advocacy by JSW - Exported 68% low grade production to China .

By C R Sahu
Special Correspondent 
Bhubaneswar, 04-07-23

“Mining & Environment Watch” , apprised Odisha Govt. and Union Government about dubious policy advocacy by JSW Steel Ltd exporting 68% low grade production to China instead of beneficiating it in India.

MEW  alleged that JSW is exporting over 68% of low grade ore production to China divergent with its policy advocacy on low grade. In April 2023, from Jajang iron ore mine, 69% (0.37mt) of total low grade fines dispatch was exported. Similarly, for May’23, 84% (0.38mt) of total low-grade dispatch was exported to China without any value addition.

As per the data received from different sources, the total dispatch from Jajang iron ore mines for the month of April’23 and May’23 were 0.83million tonne and 0.83mt, respectively and out of which dispatches of low grade fines grade was 79% (0.54mt) and 88% (0.46mt)

In the drive for export for low grade ore, JSW has increased dispatches of grade 51-55%Fe, sharing about 38% total dispatch of low grades. It is pertinent to note that prior to auction, all dispatches of fines were above 60%Fe, but post auction there is sudden reduction in grade from the same mine indicating huge manipulation of grades.

The company has not only been exporting huge low-grade fines, but also exported 4.78 lakh tonnes of lumps to China from April’23 to May’23 which is divergent with its policy advocacy with Union Government and State Government of Odisha on banning export of low grade .

On one side, JSW through different industry associations are indulged in  policy advocacy with Union Government in Ministry of Steel, Ministry of Mines and MOEF&CC for promoting beneficiation of low grades (below 58%Fe) by reduction of royalty rates and tax holidays etc. and on the other side, the company itself is exporting more than 68% low grade iron dispatches.

MEW has requested the State Government of Odisha to  examine the submissions of JSW Steel Ltd and its sponsored big industry associations as being based on manipulated data and divergent with actual ground position in mines. MEW requested the State Government of Odisha to investigate the iron ore movement from Jajang iron ore mine to Paradip and Gopalpur ports and transit permits mentioned destination Self but exporting ore to China to curb any evasion of export duty so that there is no revenue loss to the Government Exchequers.