Tata Steel engages with miners NMDC, OMC to secure future iron ore needs.

Tata Steel has initiated talks with state-run miners NMDC and Odisha Mining Corporation (OMC) to secure its future iron ore supplies as the company works to expand its domestic steel manufacturing capacity. The company plans to ramp up its production to 40 million tonnes per annum (MTPA) by 2030, up from the current 22 MTPA.

To ensure steady access to this key raw material, Tata Steel is also moving forward with plans to operationalize two new iron ore mines—Kalamang West and Gandalpada. These mines will play a critical role in securing the company’s raw material needs, according to D.B. Sundara Ramam, Vice President of Raw Material at Tata Steel.

Currently, Tata Steel meets all of its iron ore demand from six mines in Odisha and Jharkhand. However, the leases of four of these mines—Noamundi, Katamati, Khondbond, and Joda East—are set to expire in 2030, prompting the company to develop a new raw material strategy. Two other mines, NINL (Mithirda) and Vijay II, will continue to remain operational as part of Tata Steel’s acquisitions of the NINL plant and Usha Martin’s steel business.

Tata Steel aims to begin operations at Kalamang in the fourth quarter of FY24, while the Gandalpada mine is slated for production by FY29. With estimated reserves of 400 million tonnes across the two mines, Kalamang and Gandalpada, alongside NINL and Vijay II, will meet up to 50% of the company’s iron ore requirements, supporting its goal of producing 40 MTPA of steel by 2030.

In FY24, Tata Steel produced 38 million tonnes of iron ore and plans to increase output to 41 million tonnes in FY25. However, for its target of 40 MTPA steel output, the company will need over 60 million tonnes of iron ore annually. Ramam emphasized that the company is prepared for potential challenges, particularly with the upcoming auction of several mines after 2030.

HBL