Tata Steel is in talks with NMDC and Odisha Mining Corporation (OMC) to ensure future iron ore supplies as it scales up its domestic steel manufacturing capacity. As part of its strategy for raw material security, the company will operationalize two new iron ore mines, Kalamang West and Gandalpada, according to D.B. Sundara Ramam, VP of Raw Material at Tata Steel.
Currently, Tata Steel meets its iron ore needs from six mines in Odisha and Jharkhand. However, leases for four key mines, Noamundi, Katamati, Khondbond, and Joda East, are set to expire in March 2030. The company has a plan in place to maintain supply, including ramping up production from two newer mines, NINL (Mithirda) and Vijay II, acquired through recent purchases.
Tata Steel aims to increase its steel production capacity to 40 mln tons per annum by 2030, up from the current 22 mln tons per annum. To meet this target, it would require over 60 mln tons of iron ore annually. In FY24, the company produced 38 mln tons of iron ore, with plans to increase output to 41 mln tons in FY25.
The Kalamang mine is expected to begin operations in late FY25, while Gandalpada is slated to start by 2029. These mines, with an estimated combined reserve of 400 mln tons, are projected to fulfill half of Tata Steel’s iron ore requirements.
For the remaining demand, Tata Steel is collaborating with NMDC and OMC. Both miners have shown willingness to supply and requested a forecast of Tata Steel’s requirements to ensure timely delivery.
Tata Steel operates India’s first steel plant in Jamshedpur with a capacity of 11 mln tons per annum and recently commissioned India’s largest blast furnace at its Kalinganagar facility, boosting capacity there to 8 mln tons per annum. Its domestic production capacity has grown significantly through acquisitions, including Bhushan Steel (5.6 mln tons per annum), NINL (1 mln tons per annum), and Usha Martin’s steel business (1 mln tons per annum).
