S2

CAPITALS DEPLOYED

Natural Capital
Intellectual Capital

CAPITALS ENHANCED

Financial Capital
Manufactured Capital

33%

Iron ore consumption met
through captive mines in
FY 2023-24

2,000 MW

Total capacity of the
captive power plants

At JSW Steel, we maintain cost leadership and ensure the sustainability of our operations through strategic acquisitions/investments in mining assets and internal logistics. By reducing dependency on external suppliers and mitigating risks associated with raw material volatility, we support our longterm growth and profitability goals, ensuring a stable supply of essential raw materials for our steel production processes.

OPTIMISE

Cost leadership
through resource
optimisation and improved
CAPITALS DEPLOYED raw material security

Raw material security and mining enhancements

We have acquired 7 iron ore leases in India through auctions in FY 2023-24 of which 3 are mining leases (1 in Karnataka and 2 in Goa) and 4 are composite licenses. Iron ore production from these 3 mining leases will begin after obtaining necessary statutory approvals. ~2 to 3 MTPA of ore is expected to be supplied from these 3 leases. On the other hand, the 4 composite licenses will have to be explored and then, operationalised.

We have also constructed a state-of-the-art pipe conveyor system spanning 24 km connecting the captive mines in Karnataka to the Vijayanagar plant for the transportation of iron ore fines efficiently. BPSL features advanced oxygen production and line calcination facilities. Meanwhile, JSW Steel's Vijayanagar plant now hosts a new 1.5 MTPA coke oven, eliminating the need for external coke procurement. This development enhances operational efficiency and secures the supply chain.

Acquisition of Minas de Revuboe Limitada

JSW Steel has approved the acquisition of 92.19% of Minas de Revuboe Limitada (MDR) in Mozambique for a purchase consideration of US$73.75 million. The acquisition will be executed through JSW Natural Resources Limited, a subsidiary of JSW Steel, securing access to over 800 million metric tonnes of premium hard-coking coal reserves.

Cost reduction

Over the year, we have focused on process improvement, energy optimisation, and cost reduction have reduced operational costs. Key efforts include:

Vijayanagar

  • Reduction in usage of prime hard coking coal with an optimum blend of semi-hard, semi-soft and inert coking coal to reduce the coke cost.
  • Developed a beneficiation process for high siliceous iron ore.
  • Introduced hematite iron ore pelletisation with renewable fuel sources, achieving up to 50% replacement of coke breeze with charcoal pellets without compromising on product quality.
  • Developed a Cold Crushing Strength (CCS) prediction model, leading to reduction in average mixed gas consumption.
  • Created a process to clean chocked iron slurry filter cloths for re-utilisation in the process.
  • ∞ Implemented the use of fly ash along with lime dolomite dust in the sintering process, increasing the balling index, granulation and product yield.
  • Evaluated washed domestic coal samples for coke-making suitability, with encouraging preliminary results.
  • Developed a Computational Fluid Dynamics (CFD) model of a COREX gas-based DRI furnace to optimise gas consumption and improve process performance.
  • Created a heating control model for blast furnace hot blast stoves, reducing BF gas consumption, and CO2 emissions.
  • Improved steel desulphurisation using modified synthetic slag briquettes, reducing FeO in Ladle Heating Furnace slag.
  • Developed a method to utilise Al-killed LF slag in cement manufacturing, replacing commercially procured laterite.
  • Utilised dry pit slag aggregates in civil applications, minimising natural aggregate procurement.
  • Identified optimised welding parameters for advanced automotive steels, improving productivity.

Dolvi

  • Reduction in usage of prime hard coking coal with an optimum blend of semi-hard, semi-soft and inert coking coal to reduce the coke cost.
  • Created a system to predict the pellet quality profile along the depth of the pellet bed, leading to quality improvement.
  • Developed a Computational Fluid Dynamics (CFD) model for the firing and after-firing zones at Pellet Plant 2.
  • Reduced dust generation at the Pellet Plant through improvements in green mix granulometry.
  • Implemented processes for the removal of alkali and Zn from various solid wastes (BF2 pot dust, BF1 Gas Cleaning Plant sludge and Sinter Plant ESP dust), reducing coke rate and alkali/Zn load in blast furnaces.
  • Conducted a CFD study on Submerged Entry Nozzle design to reduce mould level fluctuations.
  • Carried out an experimental study to reduce clogging in ladles.
  • Enhanced casting speed by using a 2D heat transfer model in HSM-1.
  • Designed complex phase steels (HR CP800) for automotive applications.
  • Developed fire resistance steels (FRS) in HSM-2 for construction and infrastructure applications.
  • Investigated the influence of charging temperature on the retransformed austenite condition and reheated grain size of the slab.

Bhushan Power & Steel

  • Completed 68 Kaizen projects, resulting substantial savings.
  • 15 Quality Circle projects completed.
  • Utilisation of flared gases (BFG and COG) in process units and for steam generation; more venues being explored.
  • Ferro alloy cost saving through grade harmonisation and Lean chemistry methodology.
  • Increase flyability of high moisture in iron ore and coking coal.
  • Reduction of specific power of compressors by reducing compressed air pressure.
  • Anthracite crusher installed for reduction in Coke Breeze/Anthracite consumption in sinter plant.
  • Dry grinding started for reducing tailing of medium grade IOF.
  • HGMS System (Longi) commissioned for reduction in generation of tailing by 25%, thereby reducing Fe% in tailing.
  • Limestone Crusher Dedusting system commissioned, by replacing imported fines with oversized lump which would be crushed in online crusher.

Salem

  • Developed a system for effective use of waste heat from the ladle preheating system, enhancing energy efficiency which reduces fuel consumption.
  • Eliminated the centre looseness in through-hardened bearing steel by improving product quality.
  • Modelled the vortex phenomenon during teeming in continuous casting systems, leading to process and yield improvements.
  • Developed a process for producing low phosphorous crude steel, enhancing steel quality.
  • Optimised the annealing process for turbine shaft applications, resulting in cycle time reduction and increase in productivity.
  • Created the special grade for rotavator blade applications, offering enhanced durability and performance.

Raigarh

  • Pig casting mould modification (4 pockets to 2 pockets per mould) resulting in yield improvement.
  • Installation of online DRI feeding conveyor from DRI plant to SMS, resulting in reduction of shifting by vehicles.
  • Billet caster sequence length was improved, by SEN modification and improved SEM ramping practice, resulting in cost saving in tundish refractory.
  • Improvement in caster sequence length, in turn reducing in tundish heating frequency resulting in lower fuel consumption and higher tundish refractory life.
  • Implementation of waste heat recovery system in sinter plant resulted in reduction in coke consumption.

JSW Steel Coated Products

Cost-reduction initiatives and savings in power/fuel consumption through:

Tarapur

  • Changing of exit crane LT & CT with VFD motors and drives at CSD2.
  • Pot ECR cooling tower stopped and water taken from centralised cooling system at CSD3.
  • Replacement of Acid Blower with lower capacity at PLTCM.

Vasind

  • Replacement of CT/LT of old cranes slipring control with VFD (CGL1).
  • Installation of IIoT-based predictive maintenance solutions.
  • CRM-4 cooling tower stopped and water taken from centralised cooling tower system.
  • CGL-3 Speed enhancement from 180 to 200 mpm.
  • Steam Optimisation and Energy Efficiency Enhancement at PLTCM.

Kalmeshwar

  • CAG Blower to run in auto control mode with respect to temperature and thickness.
  • Installation of energy efficient Grundfoss pump 4HI Mill-3 roll coolant spray pump.
  • Installation of pyrometer in Line for strip temperature control.
  • Installation of Additional RTO in CCL-2.

Khopoli

  • Utilising Variable Frequency Drive (VFD) for the ARP Combustion Air Blower, effectively controlling airflow.
  • Implementing VFD for the Water Complex Cold Well pumps, optimising their operation and leading to power saving.
  • Installing VFD for the Coater Room Exhaust Fan, ensuring efficient energy usage.
  • Enhancing efficiency by automatically switching the incinerator main burner to low fire mode when the line remains idle for more than 5 minutes.

Bawal

  • VFD installed in 6Hi Mill Coolant Motor.
  • VFD installed in Air Knife Blower/Exhaust Blower in CGL-1 for close loop control and power optimisation.
  • Fix Power optimisation in 6Hi Mill by automation and other energy saving initiatives.

Rajpura

  • Induction Reflow System in ETL Section of Tin Plate
  • Installation of energy-efficient Colour Coating Line.
  • Operation of Rice Husk Boiler (Bio Mass fuel).

Outlook

Near-term

  • Operationalise Moitra, Parbatpur and Sitanala mines in the next 1-2 years.
  • Secure washeries proposed for monetisation by Government to increase our domestic sourcing of coking coal.

Long-term

  • Target to source up to 50% of the iron ore requirement captively.
  • Target to source up to 25% of the coking coal requirement captively.
  • Establish domestic coal linkages by acquiring mines under auction and set up / acquire coal washeries.
  • Participate in the government’s iron ore and coal auctions to improve backward integration.
  • Evaluate opportunities to increasingly use domestic coal and continue diversification of coal sources.