NMDC to Invest Rs.22 Billion to Ramp Up Iron Ore Production Capacity
NMDC Ltd., India’s leading iron ore producer, has outlined a significant expansion plan for its production capacity in the coming years. The company has allocated a whopping Rs.22 billion for the fiscal year 2025, with the aim of increasing its current production output from 45 million tonnes (MT) to 100 MT by 2030. This ambitious investment demonstrates NMDC’s strong commitment to cater to the rising domestic and international demand for iron ore.
Focus on Sustainable Growth
In addition to the immense production capacity expansion, NMDC is prioritizing sustainable and responsible growth. Amitava Mukherjee, CMD Additional Charge of NMDC, reiterated the company’s commitment to sustainability by stating that their goal goes beyond just achieving higher production numbers. NMDC aims to ensure that their growth not only benefits surrounding communities but also minimizes the environmental impact associated with their operations.
Infrastructure Upgrades and New Establishments
To support its expansion plans, NMDC is making significant investments in infrastructure upgrades and establishing new facilities. One of the major initiatives includes the construction of a 135-kilometer-long slurry pipeline. This pipeline will run from Bacheli to Nagarnar and is expected to reduce carbon emissions associated with transportation.
Alongside the pipeline project, NMDC is also setting up new screening plants in Kirandul and Donimalai. These plants will further boost the company’s processing capacity.
Moreover, NMDC is focusing on upgrading its rail infrastructure. The expansion plan includes the upgraded KK line, which will have a handling capacity of 40 MTPA (million tonnes per annum). Furthermore, the company plans to lay a 15 MTPA slurry pipeline, enhancing their transportation capability even more.
In addition to these initiatives, NMDC has also planned the construction of new blending yards, a 4 MTPA beneficiation plant in Bacheli, and a 6 MTPA pellet plant in Nagarnar. These facilities will help enhance the production process and ensure a seamless supply chain.
Digital Transformation and Diversifying into Critical Minerals
NMDC understands the importance of embracing digital transformation in today’s fast-paced world. As part of their efforts, they have integrated SCADA (Supervisory Control and Data Acquisition) and ERP (Enterprise Resource Planning) systems for real-time monitoring and tracking of their operations. This will not only improve operational efficiency but also ensure effective decision-making.
Furthermore, NMDC is making strides towards reducing their reliance on coking coal imports. By initiating production in an 8 MT coking coal block by FY2026, NMDC aims to decrease their dependence on imports and achieve increased self-sufficiency.
Additionally, NMDC is exploring opportunities in critical minerals such as lithium and cobalt through its subsidiary, Legacy India Iron Ore Limited. This forward-thinking approach demonstrates NMDC’s pursuit of diversification and staying ahead of evolving market demands.
Conclusion
NMDC’s planned investment of Rs.22 billion in expanding its iron ore production capacity is a significant step towards meeting the growing demand both locally and internationally. By combining sustainable growth, infrastructure upgrades, digital transformation, and diversification into critical minerals, NMDC is positioning itself as a forward-looking and responsible leader in the iron ore industry. The company’s commitment to benefitting communities and reducing environmental impact solidifies its status as an industry pioneer driving both economic growth and sustainable development.
