Published On:May 30 2024
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NMDC Allocates ₹50,000 Crore for Capex to Double Iron Ore Production by 2030-31.

NMDC Allocates ₹50,000 Crore for Capex to Double Iron Ore Production by 2030-31.

NMDC, India's largest iron-ore miner, has earmarked a ₹50,000-crore capital expenditure to double its production to nearly 100 million tonnes (mt) over the next five to six years. The investment will focus on mine enhancement, including deeper drilling permissions, new mine bids and acquisitions, addition of equipment, setting up slurry pipelines, and expanding other allied facilities.

Currently, NMDC operates mines in Chhattisgarh and Karnataka. In FY24, the company's iron-ore production exceeded 45 mt, with a projection to increase by 11 percent to 50 mt in FY25. By FY26, NMDC aims for an additional 8 percent rise to 54 mt.

"Incremental addition to iron-ore production will come from both Karnataka and Chhattisgarh mines, and required permissions (including environmental clearances) for ramping up production to 53 mt have been obtained," said a company representative. "Beyond FY26, we have not yet determined the production guidance."

Mukherjee, a company official, anticipates a strong demand for iron ore driven by increasing domestic steel consumption. Iron ore is a crucial feedstock for steel production.

He noted that apart from NMDC Steel Ltd, other major steelmakers like JSW and JSPL have sought additional supplies from NMDC's mines. "Our large clients, such as JSPL, are requesting more supplies which we are currently unable to provide. For JSW, we are supplying 60 percent of their demand and 80 percent of RINL's demand," he added.

HBL





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