Tata Steel has begun negotiations with state-owned mining entities, NMDC and Odisha Mining Corporation (OMC), to secure iron ore supplies for its expanding steel production capacity. The company also plans to operationalise two new iron mines, Kalamang West and Gandalpada, as part of its raw material security strategy, according to DB Sundara Ramam, Vice President of Raw Material at Tata Steel. 

Currently, Tata Steel fulfills its iron ore requirements entirely from six operational mines in Odisha and Jharkhand. These include the Noamundi, Katamati, Khondbond, and Joda East mines, which have leases expiring in March 2030. Ramam mentioned that the company has already incorporated a raw material plan to address this timeline. Meanwhile, two other mines—NINL (Mithirda) and Vijay II—will remain operational, having been acquired through the takeovers of NINL and Usha Martin's steel business. 

Discussing the roadmap to meet the iron ore demand for its planned increase in steel production capacity from 22 MTPA to 40 MTPA by 2030, Ramam explained that Tata Steel produced 38 million tonnes of iron ore in FY24 and aims to produce 41 million tonnes in FY25. The company estimates it will require over 60 million tonnes of iron ore annually to achieve the targeted steel output. 

Ramam highlighted that the Kalamang mine is expected to commence operations in the fourth quarter of the current fiscal year, while Gandalpada is slated for production by FY29. He added that the timeline aligns with the expiry of leases for four existing mines, which will subsequently go up for auction. The Gandalpada mine, with an expected annual output of 10 million tonne, will play a crucial role during this transitional phase. 

The estimated reserves of the Kalamang and Gandalpada mines are approximately 400 million tonnes, and together with NINL (Mithirda) and Vijay II, they are projected to meet 50 per cent of Tata Steel's iron ore needs. To address the remaining demand, Tata Steel is in discussions with NMDC and OMC. Ramam noted that the company’s procurement team has met with both organizations, which have assured their support in providing the necessary quantities of iron ore, pending the submission of a detailed requirement plan. 

Tata Steel, which operates India's oldest steel plant in Jamshedpur with an 11 MTPA capacity, recently expanded its Kalinganagar facility in Odisha to 8 MTPA by commissioning India’s largest blast furnace in September. Over the years, the company’s domestic capacity has increased through acquisitions, including Bhushan Steel (5.6 MTPA), NINL (1 MTPA), and Usha Martin's steel business (1 MTPA).