India's Tata Steel Group is planning to ensure secured supply of around 60 percent of its raw materials by 2018.
The company said in its annual report that it would do so by investing substantially in strengthening its holdings in overseas mines, adding that it was also evaluating several mineral projects in Brazil and Australia.
As per the annual report, Tata Steel Group is self-sufficient to the extent of 25 percent for its iron ore requirements, which is likely to go up gradually to 62 percent by 2015 as its mines in Canada and Ivory Coast start production.
"Overall raw material security would reach around 50 percent by 2015 (and) to around 60 percent by 2018," the report added.
The move to secure supply of raw materials will help the steelmaker lower risks resulting from price volatility. Typically, costs of raw materials such as iron ore and coal, among others, account for 40 percent of a steel manufacturer's revenue from sales.
"We are actively pursuing raw material interests in coking coal and iron ore either in terms of virgin sites with significant resource potential or in terms of smaller existing ventures which can be quickly aligned to the requirements in Europe," Tata Steel said in its annual report.
Tata Steel Europe, which controls UK-based Corus's operations, imported around 22 million mt of iron ore from Australia, Canada, South Africa and South America and 11 million mt of coal from Australia, Canada and the US in the FY 2008-09.