India seeks steelmaking raw material from Argentina, Indonesia, Oman, sources say

NEW DELHI: India will hold talks with Argentina, Indonesia and Oman next month as it seeks to boost supplies of steelmaking raw materials such as coking coal and iron ore, and access technology, two sources with direct knowledge told Reuters.

The talks are expected to begin next month at a global steel summit, described by the Indian government as the country’s largest international conference-cum-exhibition, said the sources who did not wish to be identified as the plan was not yet public.

India, the world’s biggest crude steel producer after China, relies on ferronickel imports for stainless steel manufacturing, with Indonesia holding the world’s largest nickel ore reserves.

The country also imports large quantities of iron ore from Oman and Brazil, with which it signed a deal last month to expand cooperation in mining and minerals, as it seeks to meet rising domestic steel demand.

With Argentina, India aims to secure imports of lithium and other critical minerals for New Delhi’s state miner NMDC, the sources said.

The steel ministry and NMDC did not immediately respond to Reuters’ emails seeking comment.

Argentina is the world’s fourth-largest producer of lithium, a key component in batteries for electric vehicles and renewable energy storage.

In January, the Indian government said it wants to secure stable supplies of key raw materials such as coking coal, lithium, cobalt and rare earth elements as it expands steel production and accelerates its transition to cleaner energy.

Besides meeting rising domestic demand driven by strong economic growth and higher infrastructure spending, India is also seeking to boost steel exports.

New Delhi is diversifying its steel export markets from Europe to Asia and the Middle East to offset the impact of the European Union’s carbon tax, driving higher output and greater demand for raw materials.

Amid concerns over securing raw material supplies from overseas, India’s steel sector is grappling with a severe gas crisis- spurred by the war in the Middle East - that has threatened production at small steel units, while a unit of the JSW Group has also warned of a potential shutdown.