Steel Ministry Considers Separate SAIL Mining Unit for Iron Ore Boost.

The Union Steel Ministry is reportedly considering the establishment of a dedicated vertical within the state-owned Steel Authority of India Ltd (SAIL) specifically focused on mining operations. The move is aimed at significantly boosting the production of iron ore, a critical raw material for steel manufacturing.

According to a senior government official, a proposal is currently under discussion at the ministry level to create this specialized mining vertical within SAIL to enhance operational efficiency. SAIL is one of India's largest integrated steel companies and possesses significant captive iron ore reserves.

"The Ministry is discussing it with the company (SAIL). The structure of the vertical is being discussed at present and then it will be sent to SAIL for further course of action," the official stated.

This proposed vertical would concentrate on increasing iron ore production to align with SAIL's ambitious expansion plans. The company aims to scale up its overall installed steel production capacity to 35 million tonnes per annum (MTPA) by 2030.

SAIL, which operates under the administrative control of the Ministry of Steel, is currently India's third-largest iron ore producer. Its mining network includes 15 iron ore mines spread across the states of Jharkhand, Odisha, and Chhattisgarh. Additionally, the company operates four coal mines and three flux mines.

In the fiscal year 2024-25, SAIL reported production figures of 33.78 MT of iron ore, 0.59 MT of coking coal, 0.84 MT of thermal coal, 1.31 MT of limestone, and 0.40 MT of dolomite.

A request for comment sent to SAIL regarding this development remained unanswered at the time of reporting.