Tata Steel forced to import iron ore

Due to the closure of Noamundi, the largest mine in the eastern state of Jharkhand, one of the most important steel companies in India, Tata Steel, will soon be forced to import a significant amount of iron ore for its Indian metallurgical enterprises. Due to the expiration of the license, the Jharkhand state authorities have suspended operations at the mine since early September 2014. The company produced about 17 million tons of this mine. iron ore, accounting for 40% of the total production of raw materials Tata Steel.

Unlike European enterprises that buy ore from external sources, the needs of the Tata Steel smelters were fully covered by the iron ore mines in Odisha and Jharkhand. The resulting shortage of raw materials will have to be covered by imports. According to the forecasts of the company's specialists, Tata Steel plans to buy about half a million tons of iron ore on foreign markets every month. Although the import of ore will increase costs for the company's Indian steel mills, the ore will have to be imported until the mines in Jharkhand resume.

Recall that in April this year, the Supreme Court of India ruled that mining in the western state of Goa can recover only after the issuance of new licenses. In May, the Court in the eastern state of Odisha halted operations at 26 mines in May and did not renew their licenses. Following a judicial precedent, the Jharkhand state authorities closed the mines owned by Tata Steel without waiting for the completion of the license renewal process.