Business · India Bureau
Steel Ministry directs SAIL, NMDC to scout overseas mineral assets
India's steel ministry has tasked state-run producers SAIL and NMDC with identifying mineral resources abroad to secure long-term raw material supplies and manage input costs. The push reflects New Delhi's strategy to reduce dependence on imports for critical steelmaking materials.
LSN India ·
The Steel Ministry has directed its two major public sector undertakings—Steel Authority of India Ltd (SAIL) and the National Mineral Development Corporation (NMDC)—to explore and develop mineral assets in overseas markets, according to a senior ministry official. The initiative aims to address India's raw material vulnerabilities and help stabilise production costs for the country's steel sector.
India's steelmakers face significant constraints in sourcing key inputs. While iron ore remains abundant domestically, Indian producers including SAIL depend on imports for approximately 85-90 per cent of their coking coal requirements, sourcing primarily from Australia and Mozambique. Securing alternative or supplementary supplies through overseas mining ventures could provide greater supply chain stability and potentially reduce costs.
Coking coal and iron ore constitute the primary raw materials for steel production, alongside limestone and pulverised coal injection (PCI coal). The ministry believes that by establishing direct access to mineral resources abroad, Indian steel PSUs can strengthen their competitive position and insulate domestic production from volatile global commodity prices.
The move aligns with broader government efforts to ensure energy and resource security for India's manufacturing sector. While the official declined to provide specific details about target countries or investment timelines, the directive underscores New Delhi's commitment to reducing import dependency across critical industries.