India-based Tata Steel Limited has initiated a trial to import iron ore from its Canadian assets for the first time, as part of a strategy to mitigate potential raw material supply risks linked to the expiry of its captive iron ore mining leases in India in 2030, SteelOrbis learned from industry sources on Friday, January 9.
According to sources, the company has booked a sizeable iron ore cargo from its wholly owned subsidiary Tata Steel Minerals Canada (TSMC) for shipment to its Indian operations. The move is intended to reduce exposure to possible supply disruptions in the event that captive mining leases are not renewed after 2030.
High-grade Canadian iron ore to support contingency planning
A company executive said Tata Steel’s management has approved inward shipments of iron ore from Canada, with an iron content of around 64 percent Fe, to ensure preparedness against any potential shortfall once the captive mine leases expire.
At present, Tata Steel is fully self-reliant in iron ore sourcing, meeting its entire requirement from six captive mines located in eastern India. However, the company views the Canadian supply route as a strategic contingency rather than a replacement for domestic mining.
Domestic mine expansions underway in Odisha
In parallel, Tata Steel is continuing efforts to expand mining capacities at its iron ore assets in Odisha, including the Gandhalpada and Kalamang mines, the executive added. These expansions are expected to partially offset future supply risks and strengthen long-term raw material security.
Production outlook highlights growing iron ore requirement
Industry sources estimate that Tata Steel currently produces around 40 million mt of iron ore annually from its captive mines in India, while its Canadian operations generate approximately 3 million mt per year.
With steelmaking capacity growth plans in place, the company’s total iron ore requirement is projected to rise to about 47 million mt by 2031, underscoring the importance of diversified sourcing strategies.