Investments worth $15 b underway in steel sector, says NMDC chief.

India’s steel production and demand are likely to grow at a healthy rate of 6-7% plus, according to N Baijendra Kumar, Chairman and Managing Director of NMDC..

Speaking at Iron Ore Week at Singapore, the NMDC chief said “While the production and consumption in major countries such as China and Japan and the European Union is likely to stagnate in near future, the Government push on infrastructure would ensure that targets of Steel Policy 2017 would be achieved.”

Kumar said the steel production capacity is set to increase in line to meet the National Steel Policy targets of 300 million tonnes by FY31.

Currently, he said $14-15 billion investment is underway in the steel sector that would substantially increase steel-making capacity.

He said the iron ore mining major NMDC is fully geared to meet the increased iron ore demand and is investing in mines and evacuation capacity for augmenting capacity to almost double in the next 3-4 years. Being the country’s largest producer of iron ore , NMDC has the best quality ore, with highest Fe content. It has adequate reserves to cater to India’s enhanced needs.

NMDC operations are comparable with global majors’ like Vale, Rio Tinto, FMG on several indices like production cost , employee costs, performance, he said.

Kumar also said NMDC was exploring the opportunity to  export its tailings from Bailadila sector as current international prices of ore would make it feasible and profitable to do so.

HBL