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The company's iron ore mine is situated at Tensa valley in district Sundargarh, Odisha. The mine partially fulfills its requirement of iron ore for producing sponge iron. Produced as part of the company's backward integration plans to make it self reliant, the iron ore ensures consistency in the quality of raw material used in sponge iron kilns.

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This free concentration of minerals can be seen as an "avoided cost" with regard to mineral processing and refining. When highoregrade mines are depleted, as is currently happening, there is a reduction in this free bonus. This leads to extensive exergy consumption for extracting a similar quantity of metal from a loweroregrade mine.

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