Steel Ministry Plans Dedicated Mining Arm for SAIL to Boost Iron Ore Output

To boost iron ore production, the Steel Ministry is contemplating setting up a separate mining vertical within the Steel Authority of India Ltd (SAIL). According to a top government official, in-house discussions are on to carve out a dedicated arm within the company for consolidated and efficient mining operations.

The configuration of the vertical is being debated now. When finalized, the proposal will be sent to SAIL for action,” the official stated.

The step falls in line with SAIL’s long-term growth strategy of raising its installed steel-making capacity to 35 million tonnes per annum (MTPA) by 2030. Iron ore is a key raw material for making steel, particularly via the blast furnace route, and a separate mining vertical should improve efficiency in the use of resources and security of supply.

SAIL, an arm of the administrative branch of the Steel Ministry, is India’s third-largest producer of iron ore. It has 15 iron ore mines in Jharkhand, Odisha, and Chhattisgarh. Apart from that, the company also has four coal mines and three flux mines.

SAIL produced in FY 2024-25:

• 33.78 million tonnes (MT) of iron ore
• 0.59 MT of coking coal
• 0.84 MT of thermal coal
• 1.31 MT of limestone
• 0.40 MT of dolomite

The new mining vertical will not only meet SAIL’s capacity goals but also streamline operations across its vast network of mines. Authorities feel that a streamlined structure will improve productivity, provide timely raw material supply, and minimize dependence on outside sources.

An inquiry to SAIL on the development went on record unanswered at the time of going to press.