Tata Steel, a well-known business within the Tata Group under the leadership of noel Tata, has made a big move to ensure its continued expansion.

To guarantee a steady supply of iron ore, a crucial raw ingredient for the production of steel, the company has started talks with two state-owned mining companies. odisha Mining Corporation (OMC) and National Mineral Development Corporation (NMDC) are the two government businesses engaged. Tata Steel's ambitious ambition to increase its domestic steel manufacturing capacity is in line with this action.Strategic Talks at the Tata Group

D.B. Sundaram, Vice President (Raw Materials) of Tata Steel, verified the development. According to him, Tata Steel would also start operations at two new iron ore mines, Kalmang West and Gandhalpada, as part of the company's plan to secure raw supplies.Tata Steel now uses six active iron ore mines in jharkhand and odisha to supply all of its iron ore needs. The main basic material required to make steel is iron ore.

Why Adopt a New raw Material Strategy?

According to D B Sundara Ramam, this plan is necessary because the mining leases for four of Tata Steel's current mines—the Joda east Mine (since 1956), the Katamati and Khondbond Mines (since 1933), and the Noamundi iron Ore Mine (since 1925)—are scheduled to expire in march 2030.Vijay and NINL (Mithirda), two other mines, will continue to operate. After usha Martin's steel company and the NINL facility were acquired, Tata Steel took control of these mines.

Aiming for Almost Twofold Increase in Production Capacity

The business intends to increase its domestic steel manufacturing capacity from the present 22 million tonnes per annum (MTPA) to 40 million tonnes per annum by 2030, according to Sundaram, who also provided details on Tata Steel's roadmap. With this extension, the current capacity is almost doubled.Tata Steel produced 38 million tonnes of iron ore for the fiscal year 2023–2024. The corporation wants to boost production to 41 million tonnes for the current fiscal year. Tata Steel will need about 60 million tonnes of iron ore a year to meet its 40 million-ton steel production goal.Together with its new mining operations, Tata Steel's proactive involvement with NMDC and OMC demonstrates the company's dedication to obtaining the necessary raw materials to accomplish its aggressive expansion goals. Given that current mine leases are about to expire, this tactic guarantees continuous output and strengthens Tata Steel's position as the industry leader in India.