Metal Matrimony: RINL's Ore Odyssey

RINLImage Source: SteelGuru


Rashtriya Ispat Nigam Limited, the Indian government-run steel producer, has forged a long-term supply pact with NMDC Limited for iron ore sourcing from the Donimalai mines in Karnataka. This agreement complements the existing contract with NMDC for ore supplies from the Bailadila mines. As RINL's iron ore demand rises with the restart of its third blast furnace, the collaboration with NMDC ensures a stable raw material supply for RINL's steel mill in Vishakhapatnam.


In a strategic move, Rashtriya Ispat Nigam Limited (RINL), a prominent government-run steel producer in India, has entered into a significant long-term supply agreement with NMDC Limited. The pact is designed to facilitate the sourcing of iron ore from NMDC's Donimalai mines situated in the southern state of Karnataka. This collaboration enhances RINL's raw material procurement strategy and complements its existing contract with NMDC for iron ore supplies from the Bailadila mines in Chhattisgarh.

RINL's decision to secure a stable supply chain gains added importance as it gears up to restart its third blast furnace on December 30, 2023. The restart is a result of an agreement with Jindal Steel and Power Limited (JSPL), wherein JSPL will provide working capital to RINL in exchange for a monthly off-take of semis. With the third blast furnace back in operation, RINL's monthly iron ore requirement is projected to reach 600,000 metric tons.

NMDC Limited, being the largest iron ore miner in India, plays a pivotal role in fulfilling RINL's raw material needs. RINL, as the only government-run steel mill without captive iron ore mines, has historically relied on local merchant procurement and imports for its raw material requirements. The long-term supply agreement with NMDC is a strategic step to ensure a consistent and reliable iron ore supply for RINL's steel mill located in the southern port town of Vishakhapatnam.

The collaboration not only strengthens the partnership between RINL and NMDC but also underscores the importance of domestic sourcing for India's steel industry. By securing a stable iron ore supply, RINL aims to bolster its production capabilities and contribute to the nation's steel manufacturing resilience.


In conclusion, Rashtriya Ispat Nigam Limited (RINL) has taken a significant step towards ensuring a stable and consistent iron ore supply for its steel mill in Vishakhapatnam. Through a long-term supply agreement with NMDC Limited, RINL secures access to iron ore from the Donimalai mines in Karnataka, complementing its existing contract for supplies from the Bailadila mines. As RINL's third blast furnace restarts, the collaboration with NMDC becomes crucial, reflecting a strategic move to strengthen India's steel industry.

Related Stories

No stories found.
SteelGuru Business News