Tata Steel Secures Long-Term Iron Ore Supply to Support Expansion Plans

Beyond capacity expansion, Tata Steel has outlined a strong sustainability agenda, committing to achieving Net Zero by 2045.

SEATTLE (Scrap Monster): Tata Steel has initiated measures to ensure a steady supply of iron ore as it accelerates its domestic steel production capacity. The company is in discussions with state-owned miners NMDC and Odisha Mining Corporation (OMC) and plans to operationalize two additional iron mines, Kalamang West and Gandalpada, to bolster raw material security, according to D.B. Sundara Ramam, Vice President of Raw Materials at Tata Steel.

Currently, Tata Steel fulfills its iron ore requirements from six mines in Odisha and Jharkhand. However, with leases for four of these mines expiring in March 2030, the company has devised a comprehensive plan to maintain supply continuity. “We aim to increase our domestic steel manufacturing capacity from 22 million tonnes per annum (MTPA) to 40 MTPA by 2030, which will require over 60 million tonnes of iron ore annually,” Ramam stated.

As part of the strategy, Tata Steel plans to start operations at the Kalamang mine by the fourth quarter of this financial year and the Gandalpada mine by FY29. The combined reserves of the two mines are estimated at around 400 million tonnes. Together with NINL (Mithirda) and Vijay II mines, these will meet 50% of Tata Steel’s iron ore needs.

The company has also engaged with NMDC and OMC to secure the remaining iron ore requirements. Discussions have focused on arranging supply agreements to meet future demand, with both state-run miners showing willingness to collaborate.

To support its growth trajectory, Tata Steel has significantly expanded its production capacity in recent years through strategic acquisitions, including Bhushan Steel (5.6 MTPA), NINL (1 MTPA), and Usha Martin’s steel business (1 MTPA). In September, Tata Steel commissioned India’s largest blast furnace at its Kalinganagar plant in Odisha, increasing the facility’s capacity to 8 MTPA.

Beyond capacity expansion, Tata Steel has outlined a strong sustainability agenda, committing to achieving Net Zero by 2045. Its plants in Jamshedpur, Kalinganagar, and Meramandali have received ResponsibleSteel™ certification, with over 90% of the company’s Indian steel production now sourced from certified sites.

Globally, Tata Steel is among the top steelmakers with a presence across five continents and an annual crude steel capacity of 35 MTPA. In FY24, the company reported a consolidated turnover of $27.7 billion. It has also earned accolades for its digital transformation initiatives, environmental stewardship, and commitment to diversity, equity, and inclusion.

Tata Steel’s efforts to strengthen its raw material supply chain reflect its proactive approach to maintaining growth momentum while aligning with India’s sustainability goals and the evolving demands of industries such as automotive, infrastructure, and renewable energy. Tata Steel Group is a global steel powerhouse with an annual crude steel capacity of 35 million tonnes per annum. It is one of the most geographically diversified steel producers in the world, with operations and a commercial presence spanning five continents. In FY24, the group achieved a consolidated turnover of approximately USD 27.7 billion and boasts an employee base of over 78,000. Recognised as a Great Place to Work-Certified™ organisation, Tata Steel is committed to excellence in its workforce practices and sustainability initiatives, including its ambitious goal of achieving Net Zero by 2045.

Tata Steel has been a pioneer in leveraging digital technologies to redefine steelmaking. It has received the World Economic Forum’s Global Lighthouse recognition for its Jamshedpur, Kalinganagar, and IJmuiden plants, along with the ‘Digital Enterprise of India – Steel’ Award 2024 from Economic Times CIO. The company has also been recognised for its diversity and inclusion efforts, earning the Global Diversity Equity & Inclusion Lighthouse accolade in 2023. Tata Steel is a leader in sustainable practices, being part of the DJSI Emerging Markets Index since 2012 and ranking consistently among the top 10 steel companies in the DJSI Corporate Sustainability Assessment since 2016. Notably, more than 90% of its steel production in India now comes from ResponsibleSteel™ certified sites.

Courtesy: www.themachinemaker.com

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