Steel Ministry Asks SAIL, NMDC to Explore Overseas Mineral Assets
Steel

Steel Ministry Asks SAIL, NMDC to Explore Overseas Mineral Assets

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.

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.

Related Stories

Gold Stories

Next Story
Resources

K Raheja Corp Homes hosts Joyfest 2.0 at Navi Mumbai project

K Raheja Corp Homes hosted the second edition of Joyfest at Raheja Jade City in Juinagar, Navi Mumbai, bringing together more than 500 residents and visitors for an evening of games, music and family activities.The event, themed ‘Streets of India’, drew inspiration from traditional Indian fairs and included food stalls, interactive games and entertainment for different age groups. Activities included virtual reality cricket, balloon shooting, motion dance, Ring the Pot and Hit the Tins. A jumping castle, bubble artist and mascots added to the attractions.Participants also took part in diya..

Next Story
Real Estate

Ashiana Housing launches third phase of Chennai senior living project

Ashiana Housing has launched Phase 3 of Ashiana Vatsalya, its active senior living project in Chennai. The new phase will add 168 residential units, with an estimated investment of Rs 1.004 billion. Construction is scheduled for completion by March 2029.Spread across 17.9 acre, the new phase will offer one-, two-, and three-bedroom homes priced between Rs 8.5 million and Rs 16.9 million. The International Finance Corporation (IFC) will fund the investment.The larger development includes a 42,000 sq ft clubhouse, 6.3 acres of landscaped and park areas, and more than 40 lifestyle and sports amen..

Next Story
Infrastructure Transport

Seco Marks 30 Years in India, Strengthens Pune Operations Wins Rs 8.39 Billion Vande Bharat Sleeper Orders

"Wabtec Corporation (NYSE: WAB) has secured orders worth approximately US$94 million (Rs 8.39 billion, or Rs 8,390 million) from Indian Railways for systems for the Vande Bharat Sleeper programme. The equipment is intended to increase service availability, simplify maintenance and improve passenger safety.Wabtec will supply onboard brake systems, doors and gangway solutions. Its scope also includes system delivery, integration support, testing, commissioning and long-term operational reliability support.Pascal Schweitzer, President, Wabtec Transit, said the orders reflect the company’s commi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code