SAIL and NMDC urged to expand overseas mineral sourcing

By Staff Report 1 October 5, 2026 6:37 pm IST

The Steel Ministry has asked SAIL and NMDC to explore overseas mineral assets to secure long-term raw material supplies and manage input costs.

The Steel Ministry has asked state-owned steelmaker Steel Authority of India Ltd (SAIL) and iron ore producer NMDC to explore mineral assets overseas to secure long-term supplies of key raw materials and manage input costs, a senior ministry official said.

The official confirmed that both companies have been asked to look for mining opportunities abroad. No further details were provided on specific countries or assets under consideration. Iron ore and coking coal are among the key raw materials used in steel production, along with limestone and pulverised coal injection (PCI) coal.

While India has substantial iron ore reserves, domestic steelmakers remain dependent on imports for coking coal. Around 85–90% of India’s coking coal requirements are met through imports from countries including Australia and Mozambique. Indian steelmakers also import limestone, including from the West Asia region.

The overseas asset push comes as steel companies seek greater control over raw material supplies and reduced exposure to fluctuations in international prices.

For NMDC, overseas exploration could also support its plans to diversify beyond iron ore. The company is looking to expand into the exploration and production of other minerals to meet growing industrial requirements.

Source: The Economic Times