JSW Steel, an Indian steelmaking unit of energy to infrastructure company JSW Group, is investing nearly 350 crore rupees ($47.95 million) to set up two pipe conveyor projects that will transport ore from the mines to its plant in Karnataka.
The projects will save JSW Steel as much money, around $47.95 million, in annual logistics cost to transport the raw material. The company said that the money saved is like money earned and will reflect in its margins.
For JSW Steel, the two pipelines will help at a time when the cost of raw materials like iron ore and coal is slowly inching up. The pipeline will also play a crucial role in its plan for raw material security.
The projects will be completed by the end of the present financial year. While two of the five mines are already operational, the rest will start operating by December.