India: Odisha HC to hear JSW-IBM dispute on 14 Feb

The matter of the Indian Bureau of Mines (IBM's) average sale price (ASP) for iron ore in Odisha will be heard again on 14 Feb'22. As reported earlier by SteelMint, India's largest steelmaker, JSW Steel, is contesting the Indian Bureau of Mines' decision to set an ASP excluding some of its transactions from its mines in Odisha.

A final judgment in this matter will have implications for JSW Steel which has set aside INR 1,000 crore as liability in case the court rules against it, as well as other steelmakers, and the state, which collects royalty and premium from auctioned mines based on this ASP. The IBM is believed to have submitted its counter argument in the matter which will be heard again on Monday, 14 Feb'22.

• From Aug-Dec'21, MSTC conducted 11 auctions of iron ore from JSW's Jajang mine, which was used to discover a "market price" for ore from Nuagaon.
  
  
• IBM serves the company with notices for sales lower by 30% than its average sale price for the month of August.
  
  
• JSW challenged this in the High Court of Delhi.
  
  
• IBM on 12 Jan'22 revised ASP for the months of September, October, November and December, 2021, and excludes these "related party" transactions.
  
  
• JSW files writ before the High Court of Orissa.