State-owned mining company National Mineral Development Corporation (NMDC) has planned to increase the iron ore production capacity to 50 million tonnes (mt) by 2019-20.
The move is a part of the country’s largest iron-ore exporter and producer’s target of producing 67 mt of iron ore by 2021-22 to meet the demand of key raw material for steel making. The company has put the strategy in place to achieve the targets.
“The NMDC has formed a joint venture (JV) company with Chhattisgarh Mineral Development Corporation (CMDC) named NCL to mine iron ore in mineral rich state of Chhattisgarh,” NMDC Chairman N Baijendra Kumar told Business Standard. They would be eyeing similar JV company in other states also, he added.
Kumar said the NMDC had asked the Chhattisgarh government to give one more mine. The company is also working on a plan to bid aggressively for iron ore mines under the new mining policy. “NMDC would be participating in the auction in Odisha and other places for iron ore mines,” he said.
The company has set a target of producing 37 mt of iron ore in 2018-19 based on the agreement reached for supply. In the last financial year, NMDC registered best ever production in the last 60 years since the inception of the company by producing 35.5 mt iron ore.
“And for sales also, the financial year 2017-18 registered best ever since inception by selling 36.4 mt respite the main transportation line via rail remained cut off for two months,” Kumar said.
The company has been transporting iron ore to Visakhapatnam from its Kirandul-Bacheli complexes located in Naxal-infested Dantewada district of Chhattisgarh by train.
Of the company’s total out, Chhattisgarh mines share about 70 per cent.