JSW Steel Targets Domestic Iron Ore Supply Shift

Kolkata: JSW Steel is moving to reduce its dependence on imported iron ore as new domestic mines, processing capacity and transport links come online. The shift comes as India’s steel demand grows alongside infrastructure investment, making reliable raw-material supply increasingly important for industrial costs, logistics and the wider urban development pipeline.

Iron ore imports reached about 12.35 million tonnes in FY2025-26, the highest level in seven years, according to BigMint data. JSW Steel accounted for around 10 million tonnes, making it the largest importer during the year. Imports rose sharply as steel production expanded faster than domestic ore availability. The immediate challenge is not simply the availability of ore in India. It is also the cost of moving it. Iron ore is bulky and relatively low-value compared with finished steel, meaning transport can materially alter its final cost. For coastal steel plants, imported ore delivered by ship can sometimes compete with material transported long distances by road or rail. That equation could change as domestic iron ore production and mine-linked logistics improve. India produced about 289 million tonnes of iron ore in FY2024-25, while provisional government data showed production continuing to rise in the opening months of FY2025-26. JSW Steel currently has 25 iron ore mines, of which 13 are operational. The company says captive sources supplied roughly one-third of its iron ore requirement in FY2025-26 and it is targeting about 50% from captive mines by FY2030-31.

For cities and infrastructure markets, the significance is broader than a steelmaker’s procurement strategy. Steel is embedded in bridges, rail systems, housing, industrial buildings, power networks and transport infrastructure. Greater availability of domestic iron ore could reduce exposure to international commodity prices and shipping disruptions, although mining, processing and freight costs will continue to determine the final benefit. RERA does not regulate iron ore procurement or mining. However, its relevance to the wider urban economy lies in the construction activity that depends heavily on steel. If large infrastructure and housing projects continue expanding, predictable steel and raw-material costs can influence project budgets, timelines and ultimately construction affordability. The environmental trade-off also deserves attention. Domestic sourcing can shorten some supply chains, but expanding mining and associated transport infrastructure can create land, water, biodiversity and emissions pressures. The sustainability outcome will therefore depend on how efficiently new mines are developed, how ore is transported and how processing facilities manage energy and water use.

JSW Steel’s latest annual report shows a wider strategy of increasing domestic raw-material security while expanding steel capacity. Its India capacity target, including joint ventures, is around 78 million tonnes by FY2031-32. The next test will be whether new mines and logistics projects can deliver ore at competitive costs without shifting environmental and infrastructure burdens onto mining regions and communities. For India’s urban expansion, resource security will matter most when it is matched by efficient logistics, responsible mining and lower-carbon industrial growth.

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JSW Steel Targets Domestic Iron Ore Supply Shift