India: Tata Steel may Import over 1 MnT Iron Ore

Bhubaneswar: Anticipating further disturbance in supply of Iron ore from its captive mines, Indian steel major Tata Steel is planning to import more than 1 MnT of Iron ore this financial year.

The company has already imported two shipments carrying 45,000 MT and 17,000 MT of Iron ore through Haldia & Paradip ports.

A senior Paradip port official has said that the steelmaker has asked for 1-2 MnT Iron ore import facility at the port and has also asked for railway sidings for continuous supply of the cargo.

Earlier, a senior Tata Steel official had also indicated that the company is planning to import few more Iron ore consignments in the coming months especially from countries like Australia, Brazil & Chile through Paradip & Haldia port.

Why import?

The company requires about 17 MnT of Iron ore annually to feed its current 9.7 MnT pa Jamsedpur capacity. Meanwhile, it is planning to commission the first phase of its Odisha plant of 3 MnT pa capacity by Q4 FY15, so the company will require additional 5 MnT of Iron ore for the new plant and overall Iron ore requirement of Tata Steel will touch around 22 MnT pa, if operated at optimum capacity. However sources tell that initially company will operate only 1 MnT capacity and gradually ramp it up.

Currently, Tata sources half of its Iron ore requirement from its Odisha mines, which were re-opened recently through an express order by the Odisha government.

On the other hand, Tata sources a major chunk of its Iron ore requirement from its Jahrkhand based Noamundi Iron ore mines. But, the mines is currently running under 2nd renewal and the state government is going to take a decision on the mines while complying with the SC order on deemed renewal licenses.

Also, the union government may present the Shah Commission report on illegal mining in the upcoming budget session in July. So, the company is preparing itself to face any kind of supply disturbances from its captive mines. Not only it is relying on imports, it has also started talks with domestic miners for supply of Iron ore.