Over the past week, India’s Rashtriya Ispat Nigam (RINL) disclosed two strategic considerations, namely, raw material considerations and the search for a JV partner.
RINL announced that it is actively diversifying its iron ore sources beyond state-owned NMDC Chhattisgarh mines to NMDC mines in other regions, diverse source domestic auctions, and imports. RINL management also stated that coking coal and other raw materials will also be diversified to avoid overdependence on limited supply lines that create greater risk as a result of natural or accidental disasters.
RINL is also actively seeking a high-grade steel JV opportunity for its Vizag site in the state of Andhra Pradesh. RINL disclosed that it has held preliminary discussions with South Korea’s Hyundai Motor Company. It seeks to partner with an international player in flat steel with a 3-4 million mt annual capacity mill at the Vizag site. The growing demand for automotive flat steel is presently primarily met through imports.