It is reported that JSW Steel predicted that its crude steel production in September 2011 may drop as the Indian Supreme Court gave orders to postpone the mining activities and transportation in Karnataka state.

It is known that Indian Supreme Court determined on July 29th 2011 to postpone the mining activities and rail transportation in Bellary region in Karnataka state. Consequently, JSW Steel has been forced to reduce the production due to shortage of iron ore.

At present, JSW Steel's capacity utilization rate recovered to 80% after the Indian Supreme Court agreed National Mineral Development Corporation to mine 1 million tonnes of iron ore per month on August 5th 2011.

However, as the Supreme Court determined on August 26th 2011 to postpone the mining activities and iron ore transportation in Chitradurga and Tumkur regions, the capacity utilization rate in JSW Steel's Vijayanagar plant was at 75% in August 2011.

Considering the difficulties that local steel industry has faced, Indian Supreme Court determined on September 2nd 2011 to release 1.5 million tonnes of iron ore from the current stocks to steel industry.