The Steel Ministry has asked Steel Authority of India (SAIL) and NMDC to explore mineral assets overseas to secure long-term raw material supplies and help reduce input costs, according to a senior ministry official. The directive is aimed at supporting the companies’ future requirements and strengthening their access to key resources.

SAIL is India’s largest public sector steel producer, while NMDC is the country’s leading iron ore producer. The ministry confirmed that the two state-owned companies had been asked to examine overseas mining opportunities, but did not provide details on specific countries, assets or investment plans.

Iron ore and coking coal are the principal raw materials used in steel production, alongside limestone and pulverised coal injection coal. Although iron ore is widely available domestically, Indian steel producers, including SAIL, depend on imports for 85-90 per cent of their coking coal requirements, mainly from Australia and Mozambique.

India also imports limestone from the West Asia region. Overseas resource ownership could therefore help steelmakers reduce exposure to international price movements and supply disruptions while improving the predictability of their raw material costs.

Private-sector producer JSW Steel has acquired coking coal assets abroad as part of a strategy to meet 50 per cent of its raw material needs through captive sources. NMDC, which is primarily focused on iron ore, is also seeking to diversify into other minerals to meet rising demand across industries, including steel.

NMDC chairman Amitava Mukherjee has set a goal for the company to generate at least 20 per cent of its revenue from minerals other than iron ore by 2030. The ministry’s request could support that diversification strategy while encouraging state-owned steel and mining companies to build a broader international resource portfolio.