JSW Steel, which aims to produce 9 million tonne (mn t) of steel in 2013-14, plans to use low-grade iron ore dumps, with 46 per cent iron (Fe) content, at its Bellary steel plant owing to shortage of high-grade ore.

The company, which has an annual iron ore demand of 15 mn t, finds very difficult to secure it. It created capacity of 20 mn t at its benefication plant, used 52 per cent Fe iron ore and survived for the last two years. Now, it is targeting 46 per cent Fe grade iron ore.

This information was given by the firm’s Deputy Managing Director Vinod K Nowal at a conference on the mining in Karnataka. This would be the first time an Indian steel company would use such low-grade haematite iron ore as raw material. So far, JSW Steel has used iron ore with 52 per cent iron content.

The in-house research and development team of the company is in advanced stages of using very low-grade iron ore, called banded haematite quartzite, or BHQ ore (with Fe content of less than 40 per cent), in case iron ore wasn't available. In the Bellary region, very big deposits of BHQ ore are available, he said.

Currently, JSW’s steel plant is running at 80 per cent of installed capacity. The company plans to raise this to 90 per cent this financial year. The company is awaiting the announcement of e-auctions for iron ore dumps. Apart from JSW Steel, other steel companies such as BMM Ispat and Janaki Steel also have benefication capabilities to use low-grade iron ore.