JSW Steel has officially submitted a notice to surrender its mining lease for the Jajang iron ore block in Odisha, citing “uneconomic operation” as the primary reason. The company disclosed this decision in a regulatory filing on Saturday.

The Jajang iron ore block, located in Keonjhar, was one of four iron ore mining leases acquired by JSW Steel through an auction in 2020. Despite the strategic acquisition, the company has determined that continuing operations at this particular block is not economically viable.

In its filing, JSW Steel stated that it submitted the notice for the surrender of the mining lease on August 3. This move is part of the company’s broader strategy to optimize its operations and focus on more profitable ventures.

The surrender of this lease reflects the challenges faced in the mining sector, where operational costs and market conditions can impact the economic feasibility of projects. JSW Steel’s decision underscores the need for ongoing evaluation of resource management and investment strategies in the industry.