SAIL to Establish Dedicated Mining Vertical to Boost Iron Ore Production

The Ministry of Steel is considering the formation of a dedicated mining vertical within the Steel Authority of India Ltd (SAIL) to enhance iron ore production. This initiative aims to support SAIL’s goal of increasing its steel-making capacity to 35 million tonnes per annum (MTPA) by 2030. 

A senior government official confirmed that discussions are underway at the ministerial level to streamline and strengthen SAIL’s mining operations in support of its long-term expansion strategy. SAIL, one of India’s largest integrated steel producers, holds several captive iron ore blocks across the country.

SAIL currently operates 15 iron ore mines across Jharkhand, Odisha, and Chhattisgarh, along with four coal mines and three flux mines. In the fiscal year 2024–25, the company produced 33.78 million tonnes of iron ore, 0.59 million tonnes of coking coal, 0.84 million tonnes of thermal coal, 1.31 million tonnes of limestone, and 0.40 million tonnes of dolomite. 

The proposed mining vertical is expected to focus on increasing iron ore output to align with SAIL’s ambition to raise its installed steel-making capacity. Iron ore is a crucial raw material in the blast furnace-based steel manufacturing process, and enhancing its production is vital for SAIL’s expansion plans. 

The Ministry is in talks with the company, and the structure of the proposed vertical is being worked out and will be shared with SAIL for further action. This move is seen as a strategic step to ensure long-term raw material security and to insulate SAIL from external market volatility in iron ore pricing and availability. A query sent to SAIL regarding the development remained unanswered at the time of publication.