Allocate mines to curb iron ore imports: NMDC to Govt

State-owned miner NMDC has said it needs government support in terms of allocation of iron ore mines to check increasing import pressure from international biggies like Rio Tinto and 

BHP Billiton.

“India is likely to face increasing pressure of iron ore import from Big-3 miners (Vale, BHP Billiton and Rio Tinto)... (NMDC) needs to assess our <g data-gr-id="49">product-mix</g>, pricing strategy... It needs proactive support from the government for policies related to allocation of iron ore leases, auction of mines and exports,” NMDC said in its latest annual report.

The miner has plans to increase mining capacity to 75 million tonnes per annum by FY19 and 100 <g data-gr-id="45">mtpa</g> by FY22 from the current level of 34 <g data-gr-id="46">mtpa</g>, it said.

On challenges, the report said increasing regulatory pressure, uncertainty on mine allotments after passing of the MMDR Amendment Act, 2015, along with increased competition and growing threat from imports of iron ore are some of the issues that may impact the company’s performance.

“One of the major risks is the disturbances due to Maoist activities in Bailadila region. The company is in contact with government agencies for support and protection of its employees and installations. Timely enhancement of evacuation capacity in line with production plans also remains a potential risk,” the report said.

Along with strategic diversification into other commodities, NMDC plans to expand presence outside India selectively into key mining countries such as Australia, South Africa and other 

African regions.

The company had spent Rs 3,136 crore as capital expenditure in the last financial year, the highest in any given year since its inception.

Meanwhile, plagued by crisis due to the ongoing slowdown, Goa’s mining industry has got a saviour in the Minerals and Metals Trading Corporation (MMTC), which has offered support to help sell iron ore in the international market.

The industry, which is expected to start fresh extraction from next month, has been wary of its prospects due to high prices in <g data-gr-id="42"><g data-gr-id="52">the the</g></g> global market and subdued <g data-gr-id="53">low grade</g> ore demand.

“MMTC, being a pioneer in export of various?minerals for the last five decades, has volunteered its service to assist the Goa government to dispose of the large chunk of iron ore lying along various operational areas of mines, jetties and the port,” according to an official release on Wednesday.

The company is a canalised agency of the central government for higher grade iron ore (+64% Fe).

MMTC CMD Ved Prakash, along with other officials, had met the Chief Minister on Tuesday in this connection.

“MMTC also assured the government to offer its service for facilitating <g data-gr-id="51">marketing</g> of Goan iron ore at best possible price in the international market in a very transparent and time-bound manner,” it said.

Chief Minister Laxmikant Parsekar has requested MMTC to officially submit a proposal wherein the government could explore the possibility of moving ahead.

Set up in 1963, MMTC, a PSU under the Ministry of Commerce, is one of the two highest foreign exchange earners for India and a leading international trading company with a turnover of around 

$5 billion.