TS Alloys, a fully owned subsidiary of Tata Steel Ltd, would now be known as Tata Steel Mining Ltd. The new entity will focus on commercial mining and also the existing ferroalloys business.
It may be recalled that TS Alloys had emerged as the successful bidder for three chromite mines in Odisha- Sukinda, Saruabil and Kamarda at the online auctions of lapsing merchant blocks conducted by the Odisha government. TS Alloys had outbid many strong contenders to bag the first merchant mine put up for auctions and formerly owned by Misrillal Mines, quoting a premium of 88.5% over and above the reserve price. As many as 12 bidders were in the fray for acquiring the chromite deposit with one of them facing disqualification. Besides TS Alloys, Tata Steel, Jindal Stainless Ltd (JSL) and Indian Metals & Ferro Alloys Ltd (IMFA) were among the key contenders. The chromite lease held by Misrilall Mines is the first lapsing mine to have been successfully auctioned in Odisha. Presently, TS Alloys runs a high carbon ferrochrome plant in Athagarh near Cuttack, an essential supplier to domestic and international stainless-steel makers. It also operates Tata Steel’s ferrochrome plant in Gopalpur.
Tata Steel Mining Ltd will build on the parent company Tata Steel’s century-old mining experience for creating a sustainable mining business. The new company’s priority is to complete all lease execution formalities as per plan and then set up Tata Steel’s best practices and systems to commence production.
In addition, the company has plant facilities which can produce both chrome and manganese alloys at Anantpur village in Odisha’s Cuttack district.
In November last year, Tata Steel’s MD & CEO, TV Narendran had announced that Tata Steel Mining will be the vehicle for all mining activities. Also, the company will participate in mining auctions under ‘Tata Steel Mining’.
The new vertical is part of the overall re-organising drive at the country’s oldest steelmaker, and also includes closing down units and selling non-core businesses. The new mining vertical will benefit from this considerable experience and resources, and also make the most of the government moves to open up the mining sector. Recently, the government also indicated that it may allow owners of captive mines to sell resources commercially.
In FY19, Tata Steel had mined 23.3 million tonnes (mnt) of iron ore and 6.54 mnt of coal. The new entity- Tata Steel Mining is expected to benefit from this considerable experience and resources and also make the most of the government’s moves to open up the mining sector.
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