Godawari Power and Ispat expect to increase iron ore production in Q2 after the company received permission to operate at enhanced capacity at Ari Dongri mines in Chhattisgarh. The state’s environment board accorded its consent to enhance the company’s iron ore plant’s annual production capacity to 3.284mn mt from 1mn mt.
On the expansion of the iron ore beneficiation plant, Godawari will become self-sufficient to meeting its steelmaking requirements through its captive mines. At present, the company buys 20pc of its iron ore requirement from external sources.
Despite the sluggish domestic steel market, increased exports of billets and wire rods to African and Asian countries support the company’s steel production ramps. Earlier in May, the company had announced plans to raise its billet production capacity to 700,000mt from 400,000mt by the end of FY2022. Sponge production capacity is also slated to be increased to 600,000m from 500,000mt by Q4, which will be consumed internally for billet making.