Stories
Steel Ministry Directs SAIL, NMDC to Explore Global Mining Assets for Raw Material Security
- •The Steel Ministry has instructed public sector undertakings SAIL and NMDC to seek mineral assets abroad to secure long-term raw material supplies and manage input costs.
- •SAIL is India's largest public sector steel producer, while NMDC is the country's leading iron ore player.
- •The initiative aims to ensure future raw material requirements and reduce production costs for the steel industry.
- •Indian steelmakers, including SAIL, heavily rely on imports for 85-90% of their coking coal needs, primarily from Australia and Mozambique, and also import limestone from the West Asia region.
- •NMDC plans to diversify its operations beyond iron ore, aiming for 20% of its revenues by 2030 to come from the sale of other minerals.
Key Questions Answered
The Steel Ministry asked SAIL and NMDC to explore mineral assets abroad to secure long-term raw material requirements and support input costs. This move will help secure future production needs and reduce overall operational expenses.
Iron ore and coking coal are the two basic raw materials required for steel production, alongside limestone and pulverised coal injection (PCI coal). While iron ore is abundant domestically, Indian steelmakers rely heavily on imports for their coking coal and limestone requirements.
NMDC aims to earn at least 20 percent of its revenues from the sale of minerals other than iron ore by the year 2030. The company operates primarily in iron ore production but is looking to diversify into exploring other minerals to support various industries like steel.
