Sajjan Jindal-led JSW Steel Ltd on Thursday (November 16) said the company has decided to withdraw its application for the final mine closure plan of the Jajang iron ore block submitted before the Indian Bureau of Mines.

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The company had initially submitted a notice for the surrender of the mining lease on September 1, 2023, citing uneconomic operation as the primary reason, JSW Steel said in a regulatory filing.

The firm had bagged the Jajang iron ore block in the auction of blocks in Odisha. The block holds an estimated reserves of 39 million tonnes.

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The move comes after a comprehensive assessment of the demand and supply scenario for iron ore in India. JSW Steel, a prominent player in the steel industry, has four iron ore mining leases in the state of Odisha, all acquired through auctions in 2020.

The decision to withdraw the surrender application for the Jajang iron ore block underscores the company's responsiveness to the evolving market dynamics, it said.

JSW Steel reported a consolidated profit of ₹2,773 crore for the quarter that ended September against a consolidated net loss of ₹848 crore in the same period a year ago.

The company's consolidated net revenue for the quarter rose 6.7% year-on-year to ₹44,584 crore, compared to ₹41,778 crore in the year-ago quarter.

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Consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at ₹7,886 crore. The operating margin expanded by 1,350 basis points to 17.7% from 4.2% a year ago.

Total sales volumes surged 11% quarter-on-quarter and 10% year-on-year on strong domestic demand and inventory liquidation of 0.3 MT during the quarter. Net sales realisations (NSR) at Indian operations declined by 4% QoQ and 4% YoY.

Shares of JSW Steel Ltd ended at ₹768.80, down by ₹3.55, or 0.46%, on the BSE.

(Edited by : Shoma Bhattacharjee)