State-owned mining major NMDC
plans to nearly double its mining capacity to 67 metric tonnes per annum (MTPA), as part of its diversification and forward-integration plan, It will also be setting up steel plants.
NMDC's current mining capacity across three complexes in Karnataka and Chattisgarh is 35.57 MTPA. By 2021-22, it hopes to increase this to 67 MTPA through brownfield and greenfield expansion, say company sources.
Australia-based Legacy Iron Ore
Ltd, in which NMDC
holds 78.56 per cent, has also applied for allocation of tenements for tungsten in Western Australia, according to company's 2017-18 annual report.
Tungsten metal is of strategic importance due to its essential requirement in defence
and aerospace sector
and currently, India meets its entire requirement through imports.
has also signed an MOU with IREL
for scouting of rare earth minerals in India and abroad.
As far as steel manufacturing concerned, the new 3-MTPA plant at Chattisgarh is expected to roll the first batch of HR coil by March 2019. Till now, NMDC
has spent nearly Rs 138.75 billion on the plant.
The company has also entered pellet-making with a 1.2-MTPA plant at Donimalai. Another 2-MTPA unit is in the process of being set up at Nagarnar, Chhattisgarh.
After acquiring land and water, and ensuring power allocation and iron ore
linkage, the SPVs would rope in a strategic partner to develop and construct the steel plant.
“However, because of a change in the MMDR Act with reference to allocation of mineral block through auction system, the concerned state governments where SPVs are planned are reluctant to allocate mineral block directly to SPVs,” said in the annual report.