With a century of experience in sourcing raw material through scientific research & development and sustainable mining, Tata Steel’s three main areas of raw material operations are iron-ore, chromite and coal. The Company’s long-term strategy has been designed to have greater control over raw material resources and achieve its security across global operations.
A pioneer in prospecting, discovering and mining iron ore, coal and other minerals, Tata Steel has nearly a century of experience in scientific and sustainable mining, mine planning, development and research. Company-owned and operated mines and collieries have since its inception, met most of the raw material needs of the Company’s Steel Works. The Raw Materials Division of Tata Steel raises over 14 million tonnes of ores from its captive collieries, iron ore mines and quarries spread over the states of Jharkhand and Orissa.
The Company’s Raw Materials operations in India are mainly spread in three broad areas – iron-ore, chromite and coal. The chromite and manganese mines and their operations have been amalgamated under the 'Ferro Alloys & Minerals Division' that acts as a separate profit centre. Iron-ore and coal being the two key raw materials for steel making, efficient and scientific mining operations give the Company a competitive edge in steel production.
Major Improvement Initiatives
- Formulating sourcing strategies based on Value- in-use (VIU) & Total Cost of Ownership (TCO) basis - Supplier Value Management (SVM) initiated to forge a strong relationship with supplier partners - Exploring Green Sourcing opportunities. - Developing risk mitigation strategies - Product Substitution for depleting raw material source - Due diligence on sourcing from low cost countries
- Operationally, the Group enters into long-term contracts and annual benchmark pricing contracts for its key raw material requirements.
Steel production in India is projected to grow to over 120 Million tonnes by the year 2015. To cater to the raw materials requirement of increasing steel demand and other mineral based industries, Tata Steel has entered into an agreement with MMTC Limited, a Central Government undertaking to establish a joint venture company for acquiring, developing and operating mines and processing of minerals and metals. The Company has also signed a Memorandum of Understanding (MoU) with NMDC for exploring possibilities of entering into joint ventures for the purpose of acquisition, exploration and development of mines, extraction and processing of minerals, setting up integrated steel plants etc.
While the mining industry provides mineral and materials as inputs to a wide
range of goods and services that meet human needs; it impacts the environment
and communities. Sustainable and responsible mining is therefore fundamental
to the ethos of Tata Steel.
Today, safe, scientific and efficient mine planning forms the basis of operations at Tata Steel's Raw Materials Division. This ensures that each mine
and its collieries continue to supple natural resources to its integrated Steel Works.
Ever since the discovery of the mineral in 1903, Iron ore mining has become an integral part of steel making at Tata Steel. The iron ore units are located in Noamundi, Joda and Katamati in the states of Jharkhand and Orissa. Tata Steel Limited also has manganese mines and dolomite quarries in Orissa, located around 150 kms from Jamshedpur, home to the Steel Company's manufacturing facility. The Steel Company's iron ore units produce various grades of high quality iron ore including rich blue dust ore. Operations at the mines, including services are managed by Integrated Management Systems.
Ferro Alloys and Minerals
Tata Steel’s Ferro Alloys & Minerals Division (FAMD) is the market leader of chrome in India and is among the top six chrome alloy producers in the world, with operations spanning two continents. It is also the leading manganese alloy producer in India and is a leading supplier of dolomite and pyroxenite. FAMD has leveraged the core strengths of Tata Steel to grow successfully into a strategic business unit and separate profit centre within the Company.