Tata Steel Engages With Miners NMDC, OMC To Secure Future Iron Ore Needs

Tata Steel has initiated discussions with state-run miners NMDC and Odisha Mining Corporation (OMC) to secure future iron ore supplies as the company ramps up its domestic steel manufacturing capacity. Tata Steel will also operationalise two new iron mines namely Kalamang West and Gandalpada as part of its strategy to ensure raw material security, the company's Vice President, Raw Material, D B Sundara Ramam told PTI. At present, Tata Steel meets its entire demand for iron ore, a key raw material used for manufacturing steel, from six iron ore mines operated by the company in Odisha and Jharkhand.

Ramam said raw material plan has been carved out as leases of four mines -- Noamundi iron ore mine (being operated since 1925), Katamati and Khondbond (since 1933) and Joda East (1956) -- are expiring in March 2030. While two other mines NINL (Mithirda) and Vijay II will continue to remain operational. The mines came along acquisition of NINL plant and Usha Martin's steel business, he said. "We have a plan ready," Ramam said when asked about the company's road map to ensure iron supplies as it looks to increase domestic steel manufacturing capacity to 40 million tonne per annum (MTPA) by 2030 from 22 MTPA at present.

Tata Steel produced 38 million tonnes of iron ore in FY24, and in FY25, it plans to produce 41 million tonnes. For its planned 40 MTPA steel output, the company would require over 60 MT iron ore. Sharing the plan, the VP said the company is looking to start operations at Kalamang iron ore mine in the fourth quarter of this financial year, and Gandalpada by 2029, because after that year four mines will go for auction. "We are not sure whether we are going to get those mines or not.

That's why we are going to start production of Gandalpada in FY29. So that when other mines are under auction and maybe some transition happens, that time this mine will produce whole 10 million tonnes," he said. The total estimated reserves of Kalamang and Gandalpada mines would be close to 400 million tonnes, the VP said. He said Kalamang and Gandalpada along with NINL (Mithirda) and Vijay II will be able to support Tata Steel with 50 per cent iron ore requirement. Besides, Tata Steel has spoken to NMDC and OMC to arrange the remaining demand in future, Ramam said.

"We are trying to talk to OMC and NMDC to buy some more ore. Our procurement team has met both of them. They have also assured that they will give us iron ore," he said. NMDC and OMC have also asked to share a rough plan for estimated iron ore requirement so they can arrange the required quantity to ensure timely supply, he said. Tata Steel operates India's first and oldest steel plant at Jamshedpur in Jharkhand having a capacity of 11 MTPA. In September this year, the company commissioned India's largest blast furnace at Kalinganagar plant in Odisha to scale up capacity at the site to 8 MTPA.

Over the past few years, India production capacity of Tata Steel has gone up with the acquisition of Bhusan Steel (5.6 MTPA) and NINL (1 MTPA) in Odisha, and Usha Martin's steel business (1 MTPA) in Jharkhand. The company aims to meet the growing demands of various industries, including automotive, infrastructure, power, oil & gas, shipbuilding, and defence.

(PTI)