Inside Tata Steel’s race to secure raw material after it loses legacy mines
But this will change because the company will lose its advantage when old mining leases begin to expire from 2030.
The company has created an extensive network stretching from the cold mountains of Labrador in Canada to the forests of Gadchiroli in Maharashtra to ensure a stable supply of iron ore, the main raw material for steelmaking.
“Maharashtra, Canada, all these are options to release 2030,” said TV Narendran, CEO of Tata Steel. Mint On Monday he described the company’s efforts to secure iron ore supplies. This is in addition to the minerals purchased in India under the new auction regime, he said.
Tata Steel, Asia’s oldest steelmaker, currently supplies 100% of its iron ore needs in India through its six legacy mines, which were given to it before the Mines and Minerals (Development and Regulation) Amendment Act 2015, which required all mines to be auctioned rather than nominated by the government.
Domestic links
India’s second-largest steel producer has joined hands with a key player in central India’s mining ecosystem, which has managed to extract iron ore in a Maoist conflict-prone region where few businesses dare to venture, and will soon produce steel from it.
In December 2025, Tata Steel acquired 50.01% stake in Thriveni Pellets Pvt Ltd. (TPPL) and acquired it from Lloyd Metals & Energy Ltd. established a joint venture with. TPPL holds 100% stake in Brahmani River Pellet Ltd. (BRPL), which operates a 4 million tonnes per annum (mtpa) pellet plant and 212 km of fertilizer in Jajpur, Odisha. pipeline. Pellets are small, hardened balls made from iron ore and used in steel production.
More importantly, the steelmaker has also signed a memorandum of understanding with Lloyds Metals & Energy to explore mining opportunities in Maharashtra to increase iron ore production.
“We see opportunities as the Maharashtra government looks at the entire Gadchiroli region for development and mining, we will be willing to participate and understand,” said Koushik Chatterjee, chief financial officer of Tata Steel. He said the company was also considering how it could partner with Lloyds on the steelmaking side.
Overseas opportunity
The steelmaker also leveraged its Canadian subsidiary, Tata Steel Minerals Canada. In January, the company flagged a test shipment of iron ore from Canada for its domestic operations. Mint had previously reported. Although the shipment is yet to reach Indian shores, the company could be one of the solutions to the iron ore impasse after 2030, said Narendran.
He said the logistical costs of Canadian iron ore are offset by its superior quality. Labrador ore has an iron content of over 67% and alumina impurities of less than 1%, Narendran said. Low-alumina iron ore is considered superior in steel production because it increases blast furnace efficiency.
The company plans to blend this high-grade ore with domestic raw materials to improve the load it gives to its blast furnaces.
“So this is an option we want to test before 2030, so that we can decide our plans for the Canadian mine based on its benefit to India,” said Narendran, adding that for now the Canadian arm is exporting the ore to Europe and some to China.
He said that the Canadian mine has an annual capacity of 3 mt, but it can be increased to 10 mt annual capacity because it has sufficient reserves. In context, Tata Steel mined a record 40.5 million tonnes of iron ore in FY25, which helped the company produce 21.8 million tonnes of steel.
“If everyone bids above 100% for iron ore mines in India, then the cost of iron ore in India will be equivalent to 130-140% of the international market. So imports become an option,” said Narendran.
Policy support needed for UK profitability
Tata Steel will miss its guidance to reach earnings before interest, tax, depreciation and amortization (EBIT) breakeven in the UK by the end of this financial year due to tight competition from low prices and cheap imports.
Tata Steel’s operations in the UK continue to weigh on the company’s overall performance even after an expensive restructuring last year that saw the company shut down old equipment and lay off a significant portion of its workforce.
Hot rolled coil prices in the UK are currently around £500-510 per tonne, around £100 below the levels needed to break even, the company’s senior executives said, adding that they were hopeful they could get some policy support soon.
Tata Steel has repeatedly stated that, unlike the EU, the UK does not impose sufficient safeguard duties or import restrictions, allowing cheaper imports to drive down prices. However, the transition to electric arc furnace (EAF)-based production is expected to structurally improve costs in the medium term.
For now, “Britain will not get worse, not much better, maybe a little better” this quarter, said Narendran, adding that it was not possible to cope with current prices “unless some step is taken by the government”.
The Mumbai-based steelmaker reported a 6% year-on-year increase in consolidated revenue. ₹57,002.40 crore in the third quarter of FY26. ₹53,648.3 crore a year ago. Its revenue was higher in the 2nd quarter of FY26 ₹58,689 crore. Last Friday, the company published a report. ₹2,688.7 crore consolidated net profit attributable to owners.
In the steelmaker’s overseas operations, its operations in the Netherlands reported an EBITDA of €55 million, significantly lower than €92 million in the second quarter. Losses in the UK fell to £63 million from £66 million in the second quarter.
Tata Steel expects prices to rise gradually in the March quarter, driven by recovery in Indian and European markets. In India, from quarter to quarter, the company has increased approximately ₹Net realizations for the 4th quarter, reflecting the price increases towards the end of December and the improvement in demand conditions, are 2,200 per ton. Volumes are also seen higher.
Price trends in Europe are mixed but stable. While spot steel prices have risen in recent months, Tata Steel expects average realizations in Europe to be around €30 per tonne lower due to product mix, as increased volumes head towards lower-priced segments such as engineering rather than automotive or packaging.
But this impact will be more than offset by cost increases, especially in the Netherlands, where EBITDA is expected to improve, said Narendran. In the UK, prices rose only marginally, leaving operations below breakeven levels, and any meaningful recovery was dependent on government policy intervention.
