Tata Steel engages with miners NMDC, Odisha Mining Corp to secure future iron ore needs

New Delhi: Tata Steel has initiated discussions with state-run miners NMDC and Odisha Mining Corporation (OMC) to secure future iron ore supplies as the company ramps up its domestic steel manufacturing capacity.

Tata Steel will also operationalise two new iron mines namely Kalamang West and Gandalpada as part of its strategy to ensure raw material security, the company’s Vice President, Raw Material, D B Sundara Ramam said.

At present, Tata Steel meets its entire demand for iron ore, a key raw material used for manufacturing steel, from six iron ore mines operated by the company in Odisha and Jharkhand.

Ramam said raw material plan has been carved out as leases of four mines — Noamundi iron ore mine (being operated since 1925), Katamati and Khondbond (since 1933) and Joda East (1956) — are expiring in March 2030. While two other mines NINL (Mithirda) and Vijay II will continue to remain operational. The mines came along acquisition of NINL plant and Usha Martin’s steel business, he said.

“We have a plan ready,” Ramam said when asked about the company’s road map to ensure iron supplies as it looks to increase domestic steel manufacturing capacity to 40 million tonne per annum (MTPA) by 2030 from 22 MTPA at present.

Sharing the plan, the VP said the company is looking to start operations at Kalamang iron ore mine in the fourth quarter of this financial year, and Gandalpada by 2029, because after that year four mines will go for auction.

“We are not sure whether we are going to get those mines or not. That’s why we are going to start production of Gandalpada in FY29. So that when other mines are under auction and maybe some transition happens, that time this mine will produce whole 10 million tonnes,” he said.

The total estimated reserves of Kalamang and Gandalpada mines would be close to 400 million tonnes, the VP said. He said Kalamang and Gandalpada along with NINL (Mithirda) and Vijay II will be able to support Tata Steel with 50 per cent iron ore requirement.

Besides, Tata Steel has spoken to NMDC and OMC to arrange the remaining demand in future, Ramam said. “Our procurement team has met both of them. They have also assured that they will give us iron ore,” he said.