"NMDC Expanding Gold Mining Operations in Australia, Initiates Pre-Feasibility Studies for Lithium Reserves"

NMDC, a leading PSU-miner, is gearing up to expand its gold mining operations in Australia while simultaneously initiating pre-feasibility studies (PFS) for lithium reserves. Amitava Mukherjee, serving as Chairman-cum-Managing Director (Additional Charge) and Director – Finance at NMDC, revealed that gold mining activities in Australia are on the brink of profitability, with operations set to commence in "another couple of months." Presently, NMDC is primarily engaged in preparatory "waste mining" activities, involving the removal of rocks, topsoil, and overburden, to pave the way for subsequent mining operations.

The mining process involves removing extraneous materials like topsoil overburden to access mineral resources, along with rocks and tailings following mineral extraction. NMDC's subsidiary, Legacy, headquartered in Sydney, has initiated gold mining operations at Mount Celia in Western Australia, marking the company's inaugural venture into gold mining. Mukherjee emphasized the company's intention to increase investments in exploration in the region and neighboring areas, anticipating a surge in mining activities over the next 18-24 months.

Furthermore, NMDC is actively exploring options for acquiring lithium reserves both in Australia and abroad. Mukherjee outlined plans for conducting PFS studies for lithium reserves in collaboration with local partner Hancock, with discussions underway for securing off-take agreements. PFS studies serve as preliminary assessments of potential mining projects, providing essential insights to guide investment decisions and project viability.

Mount Bevan in Australia has been identified as a prospective site for lithium reserves, with NMDC expressing keen interest in lithium as opposed to rare earth elements. Mukherjee affirmed ongoing negotiations with local partners in Australia and projected the commencement of PFS studies within the next 2-3 months. Additionally, NMDC is considering the expansion of gold mining activities with five more potential sites under evaluation.

As NMDC progresses with gold mining operations in Australia, Mukherjee anticipates imminent cash flows within the next one-two months, marking a significant milestone for the gold mine project. The company's strategic endeavors underscore its commitment to diversifying its mineral portfolio and capitalizing on lucrative opportunities in the global mining sector.

HBL