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Tata Steel plans to enter mining business

Wednesday, 28 Aug 2019
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Tata Steel is planning to venture into merchant mining for which a separate company will be formed. So far, Tata Steel has presence in both iron ore and coal mining for captive purpose only.

The present iron ore units of Tata Steel are located in Noamundi, Joda, Khondbond and Katamati across Jharkhand and Odisha. With an annual production of 3,60,000 tonne, the Ferro Alloys and Minerals Division (FAMD) is the largest non-steel business unit of Tata Steel, operating chrome and manganese ore reserves in Odisha.

Tata Steel is evaluating mines in Odisha for commercial operations, which will come for auction in 2020. The Odisha government has sought permission for fresh auction of iron ore mines as whole lease will expire by March 2020. It will be part of a strategy for restructuring Tata Steel.

Tata Steel is simplifying its corporate structure by reducing the number of subsidiaries by 100-120. The company has about 300 subsidiaries in Europe.

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