Raw material security

We are fortifying our integrated operations with strategic raw material linkages, ensuring long-term supply resilience. With access to 23 iron ore mines housing ~1.62 billion tonnes in reserves with 12 already operational, we are well-positioned for sustained growth.

On the coking coal front, our portfolio includes three coking coal mines in Jharkhand—Moitra Coal Block (1 MTPA), Parbatpur Central Coal Mine (0.9 MTPA), and Sitanala Coal Mine (0.3 MTPA). In addition, we have secured 2.06 MTPA of Non-Regulated Sector coking coal (purchased through long-term linkage) and a washery plant, i.e., Dugda Coal washery, which comes with a 2 MTPA of Fuel Supply Agreement linkage. Raw coal availability from these sources is 6.26 MTPA, and with an average yield of 54%; clean coal availability is 3.36 MTPA.

We acquired a 66.67% economic interest in M Res NSW HCC Pty Ltd. (M Res NSW) by way of subscription to its non-voting Class B Shares, for a purchase consideration of US$ 120 million. M Res NSW owns a 30% interest in Golden M NSW Pty Ltd (Golden M), which acquired 100% of Illawarra Coal Holdings Pty Ltd. (Illawarra Metallurgical Coal) from South32 Ltd. By virtue of this investment, we acquired a look through 20% stake in Illawarra Coal Holdings Pty Ltd. The primary objective of this acquisition was to secure prime hard coking coal availability to the Company and its subsidiaries.

Illawarra Metallurgical Coal owns and operates two metallurgical coal mines – the Appin and Dendrobium mines, and associated infrastructure, in the New South Wales region of Australia.

This acquisition is expected to provide mine offtake rights to premium hard coking coal produced by Illawarra Coal Holdings Pty Ltd, which will reduce the dependability on the open market import of coking coal and provide consistent quality coal resulting in improved operational efficiencies. The annual offtake of coking coal from Illawarra mines is expected to be ~1.2 MTPA.

Operational cost reduction in FY 2024-25

Over the year, we have focused on fuel reduction, yield and process improvements, energy optimisation, which has reduced our operating cost.

Some of the key cost reduction across the plants include the following:

• Focus on regional sourcing of iron ore, which enabled the Company to reduce inbound logistics costs through shorter haulage routes and multi-modal transport strategies.
• Optimising the coking coal blend to reduce the overall coke production costs.
• Increasing the Pulverised Coal Injection (PCI) to reduce the overall fuel costs.
• Optimum utilisation of Blast Furnace gas and Coke oven gas to generate power and usage in heating requirements.
• Souring of Renewable Power there by reducing the thermal power resulting in overall power costs.

Vijayanagar

• Resource utilisation
  1. Pellet Plant 1 began utilising LD slag leading to a reduction in raw flux consumption.
  2. Fly ash usage commenced at Pellet Plant 1 helping to lower bentonite consumption.
  3. SMS-4 dust is now being consumed in both Sinter Plant 1 and Pellet Plant 1.
• Yield improvement in Wire Rod Mill #1, Bar Rod Mill #1 & #2.
• Reduction in Conveyor belt consumption costs at Pellet Plant 1 through the implementation of best practices.
• Reducing steam injection in JVML Blast Furnace (BF) to zero level which results in lower Fuel Rate and higher PCI consumption to reduce overall cost.
• Flaring control by Valve Modification in Blast Furnace and operating in cascade mode.
• Implementation of Centre Coke Charging Pattern, using Burden Distribution Model.
• Use of pyrophosphate in cooling tower to increase the COC & reduce the fresh water consumption.

Dolvi

• Optimised hot charging temperature for value-added grades, enhancing both energy efficiency and hot strip mill productivity.
• Developed an offline Hot Strip Mill Down coiler model for thicker gauge coils to reduce cobbles and mandrel delay resulting in increased productivity.
• Development of a CFD (Computational fluid dynamics) based model on steel grade intermixing in 70 T Tundish to reduce generation of intermixed slabs.
• Sponge Iron Plant channelling prediction model has helped Sponge Iron Plant to get an early indication of channeling to take timely corrective action helping in avoiding production losses.
• Increase in pellet % in burden of blast furnace enhancing blast furnace production and reduced the coke consumption.
• Reduction in Packing cost by using Edge protector in place of ID ring in HR Coil packing.
• Installation of Vent Valve to maintain Turbine extraction LP steam pressure at CPP2.
• Increase in Ladle Furnace’ Ladle life by changing the refractory type and tapping practices.
• Reduction in plate consumption by changing KR Station Raker plate from metallic to pre-cast pre-fired.

Salem

• Improved Blast Furnace (BF) Gas boiler steam generation through enhanced BF gas utilisation.
• Reduction in fuel rate at Blast Furnace -1 through Level-2 Automation and process monitoring.
• Reduction in the power consumption of cooling tower fan by modifying the fan blade profile & material.
• Reduced the power consumption of Waste Gas Fan (WGF) motor in Sinter Plant #2 by installing Variable Voltage Variable Frequency drive.
• Elimination of annealing process for thinner flat products by optimising the rolling and heating parameters in BRM.
• Reduction in Ferro alloy cost by optimising the mix of Ferro alloys.

Raigarh

• Auto stop of IGH vibro feeder and routes with installation of Positioning sensor for Earth moving equipment to reduce the idle / unwanted movements.
• Captive Power Plant Atmospheric Fluidised Bed Combustion boiler (AFBC), FD fan (650kW motor) Variable Frequency Drive installation to reduce power consumption.
• Installation of Bucket Scraper at wagon tippler grizzly to avoid hopper getting jammed in case of oversized materials.
• Use of DRI Bag filter dust for coal usage reduction.

Bhushan Power & Steel

• Commissioning of Coke Oven gas mixing system to increase Hot Blast Temperature by enriching BF gas with Coke Oven Gas.
• Reducing Aluminium consumption by controlling oxygen and carry over slag while tapping from Electric Arc Furnace.
• Productivity enhancement by improved operating practices.
• Reduction in Argon consumption by arresting multiple location leakages & installation of Argon stirring station at all LRF stations.
• Usage of Gas Cleaning Plant dust generated at Blast Furnace and moisture reduction.
• Utilisation of Sewerage Treatment Plant (STP) treated water of township in Power Plant cooling tower.

JSW Steel Coated Products

Vasind Plant

• Reduction of secondary product generation through proactive measures for quality and production planning.

Tarapur Plant

• Reduced diversion in Oil Can material, through proactive measures for quality and production planning.
• Applicability of analysed methodology to build process parameters (like CAL study) to improve the surface quality.

Kalmeshwar Plant

• Reduction in Paint Consumption by optimising coating thickness.
• Reduction in Acid Consumption through Commissioning of Acid Auto Dosing.

Khopoli Plant

• Optimised ventilation blower by controlling the speed with respect to temperature at Cold Rolling Mill.
• Installation of Variable Frequency Drive pump at water complex to reduce power usage.
• Power optimisation in Continuous Galvanising Lines through installation of pyrometer based closed loop control system.
• Oven temperature control using prime oven exhaust valves and modification of PLC logic for oven duct opening and closing system at CGL resulting in lower energy consumption.
• Implemented new techniques to reduce the roll change time at Cold Rolling Mill resulting in higher productivity.
• Strengthening of sink roll scrapper for galvanising lines to prevent diversion resulting higher prime production.

Bawal Plant

• Variable Frequency Drives were installed on coolant standby pumps, and coolant flow was automated based on real time demand. Further optimisation of fume exhaust speeds and ventilation blowers, along with power consumption reduction at mill.
• A new boiler system with integrated waste heat recovery and economiser was commissioned, improving fuel efficiency. Additionally, measures were taken to arrest steam leakage and optimised steam trap systems at pickling.

Dhar Plant

• Additional dolly cars in entry looper to reduce diversion on account of sidetrack.
• Reduction in re-work by process optimisation.
• Replacement of Cooling Tower and Pump House Motor with higher efficiency Motor.

Rajpura Plant

• Improved Colour Coating Line substrate yield by initiating structured feedback cycles with stakeholders.
• Achieved paint cost reduction by optimising coating thickness.
• Developed a structured wealth yard and implemented 5S for effective arising management.
• Reduced the generation of coil brakes at DCR line due to poor shape of CR coils.
• Recovery from waster thinner through installation of distillation unit.

OUTLOOK

Near-term

• Increase the production from the existing nine iron ore mines and operationalise three new iron ore mines viz. Vyasankere, Jaisinghpura South, Jaisinghpura North to cater to the iron ore requirements at Vijayanagar.
• Operationalise the three Goa Iron ore mines in the coming years.
• Operationalise coking coal mines, Moitra, Parbatpur and Sitanala in the next 1-2 years.
• Secure washeries proposed for monetisation by Government to increase our domestic sourcing of coking coal.
• Acquire coking coal mines overseas to secure supplies for Prime Hard Coking requirements.
• Transportation of iron ore from Odisha mines to Jagatsinghpur through the 30 MTPA slurry pipeline to enhance logistics efficiency and raw material security.
• Commissioning of the planned coke oven facilities and expansion projects across plant locations will drive economies of scale and fortify its cost competitiveness and operational resilience.

Long-term

• Target to source at least 50% of the iron ore requirement captively.
• Target to source at least 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.