JSW Steel, India’s largest importer of iron ore, plans to gradually eliminate imports of the key steelmaking raw material as domestic supplies improve and new mines become operational, according to a top company executive.
The shift could reduce India’s dependence on overseas supplies and insulate the steelmaker from global price shocks, potentially limiting raw-material cost inflation as the country ramps up infrastructure spending. India has some of the world’s largest iron ore deposits, and the government is pushing to raise domestic production of the reddish raw material.
“Objectively, we want to be done away with import,” said Puneet Jagatramka, executive vice president, central procurement cell-OPEX & bulk raw material, JSW Steel. He was speaking at BigMint's India Ferrous Week in Kolkata.
“It’s a natural thing for us because India is so rich on the iron ore deposit,” he said.
Import dependence
JSW Steel currently meets about two-fifths of its iron ore requirement through captive mines, with the remainder sourced from the market. While the company buys most of its ore from state-run NMDC Ltd, it also remains a large importer.
India imported 12.2 million tonnes of iron ore in 2025, the highest level in seven years and nearly double the previous year, according to commodities market intelligence firm BigMint. JSW Steel accounted for nearly 80% of those imports.
The company’s dependence on imports stems from two factors: a lack of mines under its control and, at times, the relatively lower cost of importing ore compared with buying it locally.
Logistics are particularly important when sourcing a bulky, relatively inexpensive commodity such as iron ore. Overseas ore transported by sea can be significantly cheaper than domestic ore moved by road, especially when JSW Steel’s plants are located close to ports.
“Sometimes it makes sense and the port becomes competitive depending upon the market at that point in time. That is how the imports are being booked,” Jagatramka said.
JSW Steel plans to remain an active participant in upcoming iron ore mine auctions to secure additional captive supplies. It is also looking to invest in logistics infrastructure to make domestically sourced ore more competitive, Jagatramka said.
The company has about 40 million tonnes of pipeline capacity under development. Of this, 30 million tonnes is expected to become operational within a year, with the remaining 10 million tonnes expected within two years.
Jagatramka said JSW Steel would also be willing to build another pipeline from NMDC’s mines to the port to procure more domestic ore. The company is working to reduce logistical bottlenecks and increase the share of domestic material in its raw-material mix.
Capacity surge
The push to secure domestic iron ore comes as JSW Steel sharply expands its steelmaking capacity in India.
The company currently operates about 35 million tonnes of steel capacity and expects this to rise to 55 million tonnes by 2030 and 79 million tonnes by 2032.
Securing domestic iron ore will therefore become increasingly important as the company’s steelmaking capacity expands. Jagatramka said the company expects domestic mining to pick up as more blocks are developed and production rises.
“Time to come, it all will be available. So, accordingly, import will also temper down. And more and more domestic ore will be used,” he said.
If JSW Steel sets up another pipeline to procure iron ore from NMDC, it could ease the transportation of raw material from eastern India to the company’s plants in the west. The pipeline could also help lower iron ore costs, as domestic ore is generally cheaper than imports. However, JSW Steel may continue importing some higher-grade ore to blend with India’s predominantly lower-grade iron ore, particularly where higher-quality international supplies are available, said Dhruv Goel, CEO of Big Mint, a commodities market intelligence firm
The Mumbai-headquartered steelmaker's CEO Jayant Acharya said in an earlier interview with Mint that the company aims to meet 50% of its iron ore requirement through captive mines and 50% from the market.
The remarks also come at a time when the government is pushing to boost iron ore availability in the country, including pushing state run Coal India to bid for iron ore mines and set up a pellet plant, Mint reported earlier.