Tata Steel partners with NMDC and Odisha Mining Corporation (OMC) to secure iron ore for its ambitious plans to expand steel manufacturing capacity. With domestic production set to rise to 40 million tonnes per annum (MTPA) by 2030, the company is taking proactive steps to ensure steady raw material availability.
Current iron ore strategy
Tata Steel currently meets its iron ore requirements from six operational mines in Odisha and Jharkhand. These include iconic sites like Noamundi, operational since 1925, and Joda East, active since 1956. However, leases for four key mines will expire by March 2030. To counter this, Tata Steel is set to operationalise two new mines, Kalamang West and Gandalpada. These mines, with an estimated reserve of 400 million tonnes, will fulfill half of the company’s iron ore needs.
Collaborations with NMDC and OMC
To meet the remaining demand, Tata Steel is in discussions with NMDC and OMC. Both state-run miners have assured support and requested detailed requirements to align with the company’s projected needs. This collaboration highlights the importance of partnerships in maintaining supply chains for critical raw materials.
Production and expansion goals
In FY24, Tata Steel produced 38 million tonnes of iron ore and aims to increase this to 41 million tonnes in FY25. For its 40 MTPA steel output target, over 60 million tonnes of iron ore will be required annually. The new Kalamang mine will start operations in late FY24, and Gandalpada is expected to begin production by FY29, ensuring continuity when existing leases expire.
Strengthening domestic capacity
With facilities like India’s oldest steel plant in Jamshedpur and the largest blast furnace at Kalinganagar, Tata Steel is scaling its production capabilities. Recent acquisitions, including Bhushan Steel and Usha Martin’s steel business, have further bolstered its capacity.
This strategic approach positions Tata Steel to meet the growing demands of sectors like automotive, infrastructure, and defence while reinforcing its leadership in India’s steel industry.
