"NMDC begins coal production at its Jharkhand facility."

State-owned iron ore producer NMDC has commenced mining operations at the Tokisud North Coal Mine located in the Barkagaon Block of Hazaribagh district in Jharkhand, as part of its diversification strategy.

The mine has an annual production capacity of 2.30 million tonnes of thermal coal. The company said the date for commencement of commercial production will be announced in due course, according to a regulatory filing made recently.

NMDC has identified 10 minerals for diversification as it seeks to reduce dependence on iron ore and build resilience against market volatility. While retaining its position as India’s largest iron ore producer, the company is also focused on establishing itself as a quality steel producer through NMDC Steel and expanding its footprint by acquiring and operating iron ore, coal, and other mineral assets in India and overseas.

The Tokisud North coal mine spans a project area of about 585 hectares and is one of two coal assets allotted to NMDC in Jharkhand by the Union Ministry of Coal. The other is the Rohne coking coal block, also located in Hazaribagh district.

The Ministry of Coal declared NMDC the successful allottee of the Tokisud North coal mine on December 16, 2019, with the allotment agreement and allotment order signed subsequently. The Tokisud North block has extractable reserves of around 52 million tonnes of thermal coal, with a planned production capacity of 2.32 million tonnes per annum.

The Rohne block has extractable reserves of about 191 million tonnes and a planned production capacity of 8 million tonnes per annum. Both coal blocks are located within an aerial distance of 10–15 km of each other.

During an investor call last year, NMDC’s leadership said coking coal features prominently in the company’s aggressive expansion plans, particularly for overseas mining opportunities. Besides coal, NMDC is also exploring opportunities in copper, lithium, cobalt, nickel, gold, and bauxite.