THEBUSINESSBYTES BUREAU
NEW DELHI, FEBRUARY 21, 2026
In a significant move to fortify global steel value chains and secure
critical raw material linkages, the Ministry of Steel, Government of India and
the Ministry of Mines and Energy of the Federative Republic of Brazil signed a
Memorandum of Understanding (MoU) aimed at deepening cooperation in mining and
minerals essential for steel production. The agreement was exchanged at
Hyderabad House in the presence of Prime Minister Narendra Modi and Brazilian
President Luiz Inácio Lula da Silva, underscoring the strategic economic
convergence between the two major emerging economies.
The MoU establishes an institutional framework to strengthen bilateral
engagement across the entire steel ecosystem, with a strong emphasis on
ensuring reliable, sustainable and technology-driven development of key raw
materials. It is expected to catalyse investment flows into exploration, mining
and infrastructure development, while also promoting collaboration in mineral
processing, recycling and beneficiation technologies that are critical for
enhancing resource efficiency and environmental performance.
A major thrust of the partnership will be on the adoption of advanced
technologies in exploration and mining, including automation and the use of
artificial intelligence for geoscientific data analysis. By leveraging AI-led
insights, both countries aim to improve discovery rates, optimise extraction
processes and reduce operational risks, thereby making mineral supply chains
more predictable and cost-efficient. The agreement also provides for sharing
best practices in extraction, processing and environmental management, aligning
growth in steel capacity with sustainability goals.
Brazil’s position as one of the world’s leading iron ore producers, along
with its substantial reserves of manganese, nickel and niobium — minerals
critical to steelmaking — makes it a natural strategic partner for India, which
is rapidly expanding its steel footprint. Enhanced cooperation is expected to
provide Indian steelmakers improved access to high-grade raw materials and
advanced processing technologies, supporting long-term capacity augmentation.
India currently has a steelmaking capacity of 218 million tonnes and is undertaking large-scale expansion to meet rising domestic demand driven by infrastructure development, urbanisation and industrial growth. In this context, the MoU is poised to play a pivotal role in securing mineral resources, enabling technology-led efficiency across the steel value chain and strengthening supply chain resilience against global disruptions.
By facilitating data-driven exploration, promoting recycling and fostering sustainable mining practices, the India–Brazil partnership is expected to support efficient preparation of steelmaking inputs while advancing environmental stewardship. The agreement marks a strategic step towards building a future-ready, diversified and resilient steel supply chain that aligns with both nations’ long-term industrial and climate objectives.
