Indian government-run steel producer Rashtriya Ispat Nigam Limited (RINL) has entered into a long-term supply agreement with NMDC Limited to source iron ore from the latter’s Donimalai mines in the southern state of Karnataka, sources at the steel company said on Wednesday, December 27.
The supply agreement will support the existing contract with NMDC Limited for supplies of iron ore from the latter’s Bailadila mines in the central state of Chhattisgarh.
RINL’s requirement for iron ore will increase following the planned restart of its third blast furnace on December 30, 2023, following an agreement with Jindal Steel and Power Limited (JSPL) under which the latter will provide working capital to RINL in lieu of monthly off-take of semis.
RINL will require 600,000 mt of iron ore per month for its 7.3 million mt steel mill located in the southern port town of Vishakhapatnam once the third blast furnace is fired up later this week.
NMDC Limited is the largest iron ore miner in the country, while RINL is the only government-run steel mill without any captive iron ore mine, relying on merchant procurement locally and imports of the raw material.
