NMDC will commission its new iron ore mines —Deposit -11B in Bailadila sector of Chhattisgarh and Kumaraswamy in Donimalai sector of Karnataka — in March and August of next year.
At a performance review meeting at the Steel Ministry on Tuesday, NMDC officials said the two mines will add up 14 million tonnes output capacity, which would help the public sector miner increase production levels substantiallyThe delayed projects forced NMDC to keep output growth target at low levels in recent years. The Steel Ministry has asked NMDC to increase iron ore production at a faster clip in the next few years than envisaged.
The mineral producer is to sign the production MoU for 2015-16 by end of this month. The Union Steel & Mines Minister Narendra Singh Tomar directed NMDC on Tuesday to aim for annual production of 75 mt iron ore by 2018-19 and 100 mt by 2020-21, according to a ministry statement.
Gradual production
Earlier, it had decided to scale up its production of iron ore gradually. It aimed to double output at 60 mt by 2018-19. The 100 mt target was for 2024-25.
The new target was assigned at the meeting, which also broke down annual achievable targets in the next few years.
Narendra Kothari, CMD of NMDC, at a recent CII event here said the miner set a production target of 31 mt of iron ore and sales of 32 mt in 2014-15. In 2013-14, it produced 30 mt of iron ore. According to sources, during the next fiscal it reap the benefit of the full year operations of 7-mt Bailadilla mine, while the 7-mt Kumaraswamy might give little less than a half year’s production.
Stability
However, from 2016-17 onwards the ministry is expecting iron ore production at a higher rate by the national miner to bridge the demand-supply gap and keep the domestic iron ore prices stable, a top ministry source said.