The Business Bytes
New Delhi, 17 September 2024 (TBB Bureau): NMDC Ltd., India’s largest iron ore producer and a Navratna public sector enterprise, has unveiled a substantial ₹2,200 crore capital expenditure plan for FY25. This investment is set to fund the construction of a new slurry pipeline and processing plants, with the goal of ramping up the company’s production capacity to 100 million tonnes (MT) by 2030.
Amitava Mukherjee, Chairman & Managing Director (Additional Charge) of NMDC, described the expansion as both ambitious and sustainable. “Our aim is not only to increase production but to do so responsibly. We are committed to minimizing our environmental impact and making a positive contribution to the communities we serve,” Mukherjee stated.
The expansion comes in response to rising domestic and international demand for iron ore driven by rapid industrialization. Key initiatives include the development of a 135-kilometer slurry pipeline from Bacheli to Nagarnar, new pellet and beneficiation plants, and a network of stockyards to enhance NMDC’s infrastructure and efficiency.
The slurry pipeline is designed to be eco-friendly and cost-effective, reducing reliance on carbon-intensive transportation methods. Additionally, new screening plants at Kirandul and Donimalai will boost NMDC’s processing capabilities. Rail transport infrastructure will also see improvements, with plans to increase the KK line’s capacity from 28 MTPA to 40 MTPA, and the construction of a 15 MTPA slurry pipeline and blending yards.
To optimize iron ore resource utilization, NMDC is developing a 4 MTPA beneficiation plant in Bacheli and a 2 MTPA Pellet Plant at Nagarnar, with plans to expand the latter to 6 MTPA. The company is also focusing on blending low-grade ore with high-grade ore and efficiently utilizing tailings and slimes. A pilot-scale beneficiation testing facility at its R&D Centre is working on upgrading low-grade ore using international best practices.
NMDC is advancing its digital transformation with Fleet Management Systems (FMS) and Mine Transport Surveillance Systems (MTSS) already operational. The company has also implemented a Rapid Wagon Loading System at its Kirandul project. Integration of belt scales with SCADA and ERP systems aims to enhance real-time production data accuracy and operational transparency. The SAP S/4 HANA-based ERP system, introduced in January 2021, streamlines production, sales, and HR functions.
Additional digital initiatives include an Online Vigilance Portal, Customer Portal (Darpan), Ex-employees’ portal, Supplier Relationship Management, and Digital Invoicing. NMDC is also advancing in Automatic Sample Collection and Analysis, SAP Learning Solutions, HRD Dashboard, CCTV Surveillance, and AI/Machine Learning technologies.
NMDC’s strategic plan aligns with India’s vision to lead in the steel and mining sectors. The expansion supports government efforts to boost self-reliance and reduce import dependency. The company aims to increase production from 45 MT in FY24 to 50 MT in FY25, ultimately reaching 100 MT by 2030 and increasing its domestic iron ore market share from 20% to 25%.
Looking ahead, NMDC plans to commence production at its 8 MT coking coal block by FY26 to reduce India’s reliance on coking coal imports. The company is also exploring overseas opportunities for critical minerals such as lithium, cobalt, and nickel through its subsidiary, Legacy India Iron Ore Limited, with operations in Australia.
Furthermore, NMDC has registered a 10.5 MW wind project with the UNFCCC and has planted approximately 3 million trees through afforestation. The company continues to address customer needs by maintaining stockpiles near steel clusters and exploring new opportunities in iron ore, bauxite, manganese, diamonds, and gold, with future operations planned beyond FY 2030.
NMDC’s vision to reach 100 MT by 2030 signifies a bold step towards leading the global mining sector while driving substantial economic growth in India.
