MMi Daily Iron Ore Report (May 7)

The European Commission has published final terms for an Innovation Fund auction worth approximately USD 1.14 billion (around INR 109.2 billion; original budget EUR 1 billion) aimed at decarbonising industrial process heat, with the steel industry explicitly included among eligible sectors. The IF26 Heat Auction will be funded through EU Emissions Trading System revenues and is expected to open for bids in December 2026. Eligible technologies include industrial electrification solutions such as plasma torches, electric boilers, heat pumps and thermal storage; direct renewable heat from sources including solar thermal and geothermal energy; and, for the first time, nuclear technologies including small modular reactors. Successful projects will receive a fixed premium linked to each tonne of direct CO2 emissions avoided for a maximum of five years. The scheme is open to projects of all sizes across the European Economic Area and forms part of the EU's broader Industrial Decarbonisation Bank framework.

Tata Steel has received Odisha state-level approval to establish a 7 million tonne per annum iron ore grinding unit with a slurry pipeline in Jajpur. The project involves an investment of approximately USD 347 million (INR 33.29 billion) and is expected to generate 287 jobs. According to the Odisha government, the project is intended to strengthen the mineral-to-metal value chain and improve the movement and processing of iron ore for the Kalinganagar industrial region. The 7 Mtpa figure refers to the processing capacity of the iron ore grinding and slurry infrastructure and does not represent additional crude steelmaking capacity.

Odisha's High-Level Clearance Authority has approved two major steel-sector projects in Sundargarh involving a combined investment of approximately USD 1.46 billion (INR 140 billion). Rungta Mines plans to invest approximately USD 937 million (INR 90 billion) to expand its existing integrated steel plant, with the state government estimating employment potential of around 12,000. Shakambhari Ispat & Power plans to invest approximately USD 521 million (INR 50 billion) in an integrated steel plant along with a cement plant and captive power plant, with potential employment of around 5,000. The projects form part of 27 industrial proposals approved by Odisha on September 23. The state government's announcement did not specify the incremental steelmaking capacity or commissioning schedules for the two projects.