No impact on production due to unavailability of raw materials: Tata Sponge Iron

27th Aug 2018

Tata Sponge Iron, an associate firm of Tata Steel, today said there is no impact in the production due to unavailability of iron ore.

Industry body Sponge Iron Manufacturers Association (SIMA) recently raised the non-availability issue of raw materials like iron ore and coking coal with the Ministry of Steel.

SIMA Director Deependra Kashiva has informed the ministry about problems being faced by sponge iron makers with regard to raw materials and requested to take measures to address the issue.

“There is no impact in the production of sponge iron due to unavailability of iron ore,” Tata Sponge said in a regulatory filing.

It has made alternate arrangements to purchase iron ore from other suppliers, it added.

The company also said that “while the impact in near term may not be significant, however, the full year profitability could be affected”.

Tata Sponge located in Bileipada near Joda in district Keonjhar, Odisha.

Sponge iron or direct reduced iron (DRI) is used in producing semi-finished steel items, ingots and billets, which are further used to make various finished steel items.

Iron ore and non-coking coal are the main raw materials used to produce sponge iron.

Source: PTI