SAIL, NMDC Asked to Scout Overseas Iron Ore and Coking Coal Assets

India’s steel industry could see a stronger push towards overseas raw material security, with the Steel Ministry asking state-run Steel Authority of India Limited (SAIL) and NMDC to explore iron ore and coking coal assets outside the country.

The move is aimed at securing long-term supplies of key steelmaking raw materials and reducing the impact of volatile international prices on domestic production costs. India remains heavily dependent on imports for metallurgical coal, with around 90% of its coking coal requirement sourced from overseas.

The directive comes at a time when both SAIL and NMDC have reported strong operating performance. SAIL recorded a 13% year-on-year increase in sales to 1.87 million tonnes in August 2026, while its crude steel production rose 8% to 1.68 million tonnes.

NMDC also reported strong production during the month. Its iron ore output reached 4.07 million tonnes in August, an increase of 20.8% from the same month last year. Sales stood at 3.58 million tonnes, up 5.6% year-on-year.

The Steel Ministry’s focus on overseas assets marks a shift towards a more active approach to securing raw materials. SAIL and NMDC have already been examining opportunities in international markets, including potential coking coal assets and other mineral resources.

For Indian steelmakers, coking coal remains a significant cost component. Securing captive or long-term overseas resources could provide greater protection against sharp movements in global commodity prices. It could also help state-owned steel companies plan production and expansion with more predictable input costs.

SAIL’s financial performance provides further context to the move. The company reported a net profit of ₹1,636 crore in the First Quarter of Financial Year 2026–27, a 138% year-on-year increase. Its EBITDA rose 49% to ₹4,356 crore during the quarter.

The government is also targeting a substantial expansion in India’s steelmaking capacity over the coming years. Access to reliable supplies of iron ore and coking coal will therefore become increasingly important as domestic production capacity expands.

However, overseas mining investments also involve financial, regulatory and geopolitical risks. Acquiring and operating assets in foreign markets can require significant capital and may take several years before they contribute meaningfully to domestic supply.

For SAIL and NMDC, the immediate task will be to identify commercially viable assets and assess their long-term economics. If successful, overseas resource ownership could become an important part of India’s strategy to strengthen raw material security and contain steelmaking costs.