Steel ministry mulls separate mining vertical of SAIL to boost iron ore output

The Steel Ministry is mulling formation of a separate vertical at Steel Authority of India Ltd with a focus on mining operations for boosting the production of iron ore, according to an official. A proposal is being discussed at the ministry level for the formation of a mining vertical in SAIL for better operations, the senior government official said. SAIL is one the largest integrated steel companies with captive iron ore blocks in India.

"The Ministry is discussing it with the company (SAIL). The structure of the vertical is being discussed at present and then it will be sent to SAIL for further course of action," he said.

A separate vertical will focus on increasing iron ore production in line with the company's expansion plans, the official said.

SAIL aims to scale up its overall installed capacity to 35 million tonnes per annum (MTPA) by 2030. Iron ore is a key raw material used in the manufacturing of steel through the blast furnace route.

SAIL under the administrative control of the Ministry of Steel is India's third-largest iron ore producer with a network of 15 iron ore mines in the states of Jharkhand, Odisha and Chhattisgarh. The company also has four coal mines and three flux mines.

In 2024-25, SAIL produced 33.78 MT of iron ore, 0.59 MT of coking coal, 0.84 MT of thermal coal, 1.31 MT of limestone, and 0.40 MT of dolomite.

A query sent to SAIL seeking its response remained unanswered.