Tata Steel Partners with NMDC and OMC to Ensure Future Iron Ore Supply
COAL & MINING

Tata Steel Partners with NMDC and OMC to Ensure Future Iron Ore Supply

Tata Steel has begun negotiations with state-owned mining entities, NMDC and Odisha Mining Corporation (OMC), to secure iron ore supplies for its expanding steel production capacity. The company also plans to operationalise two new iron mines, Kalamang West and Gandalpada, as part of its raw material security strategy, according to DB Sundara Ramam, Vice President of Raw Material at Tata Steel. 

Currently, Tata Steel fulfills its iron ore requirements entirely from six operational mines in Odisha and Jharkhand. These include the Noamundi, Katamati, Khondbond, and Joda East mines, which have leases expiring in March 2030. Ramam mentioned that the company has already incorporated a raw material plan to address this timeline. Meanwhile, two other mines—NINL (Mithirda) and Vijay II—will remain operational, having been acquired through the takeovers of NINL and Usha Martin's steel business. 

Discussing the roadmap to meet the iron ore demand for its planned increase in steel production capacity from 22 MTPA to 40 MTPA by 2030, Ramam explained that Tata Steel produced 38 million tonnes of iron ore in FY24 and aims to produce 41 million tonnes in FY25. The company estimates it will require over 60 million tonnes of iron ore annually to achieve the targeted steel output. 

Ramam highlighted that the Kalamang mine is expected to commence operations in the fourth quarter of the current fiscal year, while Gandalpada is slated for production by FY29. He added that the timeline aligns with the expiry of leases for four existing mines, which will subsequently go up for auction. The Gandalpada mine, with an expected annual output of 10 million tonne, will play a crucial role during this transitional phase. 

The estimated reserves of the Kalamang and Gandalpada mines are approximately 400 million tonnes, and together with NINL (Mithirda) and Vijay II, they are projected to meet 50 per cent of Tata Steel's iron ore needs. To address the remaining demand, Tata Steel is in discussions with NMDC and OMC. Ramam noted that the company’s procurement team has met with both organizations, which have assured their support in providing the necessary quantities of iron ore, pending the submission of a detailed requirement plan. 

Tata Steel, which operates India's oldest steel plant in Jamshedpur with an 11 MTPA capacity, recently expanded its Kalinganagar facility in Odisha to 8 MTPA by commissioning India’s largest blast furnace in September. Over the years, the company’s domestic capacity has increased through acquisitions, including Bhushan Steel (5.6 MTPA), NINL (1 MTPA), and Usha Martin's steel business (1 MTPA). 


Tata Steel has begun negotiations with state-owned mining entities, NMDC and Odisha Mining Corporation (OMC), to secure iron ore supplies for its expanding steel production capacity. The company also plans to operationalise two new iron mines, Kalamang West and Gandalpada, as part of its raw material security strategy, according to DB Sundara Ramam, Vice President of Raw Material at Tata Steel. Currently, Tata Steel fulfills its iron ore requirements entirely from six operational mines in Odisha and Jharkhand. These include the Noamundi, Katamati, Khondbond, and Joda East mines, which have leases expiring in March 2030. Ramam mentioned that the company has already incorporated a raw material plan to address this timeline. Meanwhile, two other mines—NINL (Mithirda) and Vijay II—will remain operational, having been acquired through the takeovers of NINL and Usha Martin's steel business. Discussing the roadmap to meet the iron ore demand for its planned increase in steel production capacity from 22 MTPA to 40 MTPA by 2030, Ramam explained that Tata Steel produced 38 million tonnes of iron ore in FY24 and aims to produce 41 million tonnes in FY25. The company estimates it will require over 60 million tonnes of iron ore annually to achieve the targeted steel output. Ramam highlighted that the Kalamang mine is expected to commence operations in the fourth quarter of the current fiscal year, while Gandalpada is slated for production by FY29. He added that the timeline aligns with the expiry of leases for four existing mines, which will subsequently go up for auction. The Gandalpada mine, with an expected annual output of 10 million tonne, will play a crucial role during this transitional phase. The estimated reserves of the Kalamang and Gandalpada mines are approximately 400 million tonnes, and together with NINL (Mithirda) and Vijay II, they are projected to meet 50 per cent of Tata Steel's iron ore needs. To address the remaining demand, Tata Steel is in discussions with NMDC and OMC. Ramam noted that the company’s procurement team has met with both organizations, which have assured their support in providing the necessary quantities of iron ore, pending the submission of a detailed requirement plan. Tata Steel, which operates India's oldest steel plant in Jamshedpur with an 11 MTPA capacity, recently expanded its Kalinganagar facility in Odisha to 8 MTPA by commissioning India’s largest blast furnace in September. Over the years, the company’s domestic capacity has increased through acquisitions, including Bhushan Steel (5.6 MTPA), NINL (1 MTPA), and Usha Martin's steel business (1 MTPA). 

Next Story
Infrastructure Transport

Kavach 4.0 Commissioned on Delhi–Mumbai and Delhi–Howrah

"Kavach version four has been commissioned on 1,452 route km, covering the high density Delhi–Mumbai and Delhi–Howrah corridors. The rollout included laying 8,570 km of optical fibre, installation of 1,100 telecom towers, deployment of trackside equipment over 6,776 RKm and establishment of 767 station data centres. Trackside implementation has been taken up on 24,427 RKm covering Golden Quadrilateral, Golden Diagonal and High Density Network sections. The programme aims to strengthen signalling and train protection on key routes.Kavach is an indigenously developed automatic train protecti..

Next Story
Infrastructure Transport

Railways Advance Kalyan–Murbad Line And Mumbai Capacity Expansion

"Indian Railways is advancing multiple rail infrastructure projects in Maharashtra, including the sanctioned Kalyan–Murbad new line and sizable investments under the Mumbai Urban Transport Project and the Mumbai–Ahmedabad High Speed Rail project. The Kalyan–Murbad 28 km new line has been sanctioned at Rs 8.36 billion (bn) on a 50:50 cost-sharing basis with the Government of Maharashtra and has been declared a Special Railway Project for land acquisition; proposals covering 214 hectares are at various stages of acquisition. Budgetary outlay for projects falling fully or partly in Maharash..

Next Story
Infrastructure Urban

Parliamentary Panel Flags Funding Gaps in Heavy Industries

"The Department-Related Parliamentary Standing Committee on Industry (Rajya Sabha) presented its 332nd report on the Demands for Grants 2026-27 of the Ministry of Heavy Industries (MHI). Figures converted from crore and lakh are expressed in million (mn). The Budget Estimates 2026-27 for the Ministry stand at Rs 79,399 mn against a projected requirement of Rs 94,843.2 mn, a shortfall of about 16 per cent, with revenue at Rs 79,370.8 mn and capital compressed to Rs 28.2 mn from Rs 5,020 mn.The committee flagged recurring BE-to-RE compression and declining revised estimate utilisation, and calle..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement