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 explore mineral assets abroad to secure long-term raw material requirements and reduce input costs.
- •SAIL is India's largest public sector steelmaker, while NMDC is the country's leading iron ore producer.
- •The initiative aims to secure future raw material needs and lower production costs for steel manufacturing.
- •Indian steelmakers, including SAIL, heavily rely on imports for 85-90% of their coking coal requirements, primarily from Australia and Mozambique, and also import limestone from West Asia.
- •NMDC plans to diversify into exploring other minerals, with Chairman Amitava Mukherjee aiming for at least 20% of revenues from non-iron ore minerals by 2030.
Key Questions Answered
The Steel Ministry directed SAIL and NMDC to explore foreign mineral assets to secure long-term raw material requirements and support input costs. This move aims to secure future needs and reduce costs, particularly since Indian steel makers depend heavily on imports for 85-90 per cent of their coking coal requirements.
Iron ore and coking coal are two basic raw materials required to produce steel, alongside limestone and pulverised coal injection coal. While iron ore is available in abundance domestically, Indian steel makers remain heavily dependent on imports for 85-90 per cent of their coking coal requirements from countries like Australia and Mozambique, and also import limestone from the West Asia region.
NMDC is looking to diversify into the exploration of other minerals to meet the growing needs of various industries, including steel. According to Chairman Amitava Mukherjee, the company's goal is to earn at least 20 per cent of its revenues from the sale of minerals other than iron ore by 2030.
