NMDC eyes new iron ore deposits via auction and Govt dispensation route

Hyderabad: NMDC Ltd plans to pursue allocation of new iron ore deposits both by participation in auctions and the Government dispensation route, even as it seeks to expand its brownfield mines to increase its production target to 67 million tonnes per annum (MTPA).

During its 61st Annual General Meeting, NMDC unveiled plans to increase its production capacity to 67 mtpa. The development of a greenfield mine has been planned through a joint venture with Chhattisgarh State Mineral Development Corporation, for which it has appointed a mining developer. This will add 10 MTPA of capacity in the next four-five years.

Addressing the AGM, N Baijendra Kumar, Chairman and Managing Director of NMDC, said it is proposed to raise the company's current mining capacity of 43 MTPA to 67 MTPA with the aim of meeting the domestic iron and steel sector's requirement.

The company registered a good performance in the first quarter of this fiscal in spite of problems with the Donimalai lease. It is hopeful of resolving the issue. The company closed the last fiscal with a profit of Rs 4,642 crore and a networth of Rs 25,952 crore as of March 31, 2019. Progress on construction of the 3 mtpa steel plant at Nagarnar, Chhattisgarh, during 2018-19 has been noticeable and various packages are under construction and nearing completion. Cold trial of individual equipment under various packages is in progress. The steel plant is scheduled to be commissioned in three phases and is expected to be operational by the third quarter of FY 2020-2021.

To increase the evacuation capacity from the Bailadilla sector, NMDC has taken up doubling of the Kirandul-Jagdalpur railway line, which will reduce the total turnaround time for rakes. The slurry pipeline from Bailadila to Jagdalpur and further to Visakhapatnam, with a capacity of 15 MTPA, will add to the ease of evacuation.