NEW DELHI: Planned job cuts in Britain by India’s Tata Steel were the “least bad option,” and the company will continue to hold talks with unions and hopes to reach a conclusion over the next two months, CEO T V Narendran said.

The steelmaker will close its two blast furnaces in Britain by the end of this year, axing up to 2,800 jobs at its Port Talbot steelworks in Wales.

The plan, however, has been rejected by three trade unions - Community, Unite, and GMB - who said they would consult members on next steps, including industrial action.

“We are expecting the unions to also think through the consequences of some of the actions, because ultimately this is not a business which is making money and trying to restructure, it is losing a lot of money,” Narendran told Reuters in an interview.

“Do you want to lose even more money? And does that help? It’s not a happy conversation, but it’s a necessary conversation,” he said, adding that the company will deal with the situation as it evolves.

India’s critical minerals, steel demand

The steelmaker is also looking at India’s ongoing auction of critical minerals, the first part of which is underway for an estimated $5.4 billion and includes minerals such as lithium.

“We are just looking at all the minerals being listed, looking at the documents, looking at the reserves, seeing if anything is of interest and then we will decide,” Narendran said.

Tata Steel to cut 3,000 jobs in Wales

The steelmaker expects India’s steel demand to be strong, with growth expected in automotives and construction, alongside railways and oil and gas sectors.

Separately, Narendran said he expects continued volatility in prices of coking coal, a key steelmaking raw material, with prices moving in the $270-$350 per ton range.