Targeting 100 million tonne (MT) of iron ore production by 2030, NMDC, the county’s largest iron ore merchant miner, is carrying out an internal restructuring which includes setting up new divisions like projects department and ramping up on human resource. Overseas acquisition – for iron ore and also lithium mines - is also being looked into.
Speaking to businessline, Amitava Mukherjee, Chairman and Managing Director, NMDC, said: “Towards the 100 Mt target by 2030, we plan to produce 78 MT from existing mines, 14 MT (51 per cent of 27.5 MT) from the mines of NCL (an NMDC-CMDC Limited JV) and the balance 8 MT from the newly applied mining leases across states of Odisha, Karnataka, Chhattisgarh, Jharkhand etc.”
The company is also looking towards acquisition of mining assets in various parts of the world, which will substantiate the target of 100 MT production by 2030, he added.
The current production capacity of NMDC iron ore mines is around 50 MT, with Kirandul (Chhattisgarh) at 18 MT, Bacheli (Chhattisgarh) at 18 MT and Donimalai (Karnataka) at 14 MT.
Capacity Expansion Plans Underway
A nearly ₹50,000 crore investment plan is under consideration, with nearly ₹9000 crore of capex and investment being planned every year year, sources said. Capacity expansion measures are in full swing. Construction of the 12 MTPA Screening Plant and adoption of Rapid Wagon Loading System (RWLS), along with new Crushing Plants planned for both Deposit 14 and 11C.
While expanding infrastructure for the ambitious target, NMDC has also applied for additional EC capacities to enhance Kirandul’s production capacity to 30 MT by FY30.
In Bacheli, the company is building new loading facilities and increasing the capacity of the Screening Plant to take up the production capacity to 31 MT from the complex.
With 61 MT expected from the Bailadila – yet to start production, NMDC is also awaiting permissions on the enhancement of its capacity in Karnataka to achieve 17 MT from Donimalai.
From the NCL mines, NMDC plans to produce 21 MT from Deposit 13 and 7 MT from Deposit 4, (from which NMDC share of production will be 14 MT) taking up the total production capacity to 92 MT by FY30. Apart from this, NMDC targets to achieve balance 8 MT of iron ore from greenfield mines as well as from acquisition route.
Strategic Planning
“We have done meticulous strategic planning at the management level coupled with robust tactical planning at the field level, aligned to the medium- and long-term goals of the company,” Mukherjee said.
The company is enhancing production and evacuation capacities, building supply chain resilience, augmenting technical and digital strength, and also focussing on ESG principles. In FY24, NMDC established a ‘Works Organisation’ that will streamline execution of ambitious projects in the pipeline, through close monitoring.
The National Steel Policy intends to take India’s steelmaking capacity to 300 million tonnes by 2030 for which around 450 million tonnes of iron ore would be required. The present share of NMDC production in national production is around 16 per cent and the miner has targeted a production capacity of 100 MT by FY30, thereby maintaining its share of production in national production to 22 per cent.
NMDC has engaged global consulting agencies to draw advisory strategies on what to sell, whom to sell, and how to sell to channel a broader view on commercial sales, distribution and logistics.