NMDC plans to increase its production capacity to 67 million tonne per annum (MTPA) from the current mining capacity of 43 MTPA to meet the growing requirement of iron ore by the domestic steel industry. As part of its vision 2025 plan, the company expects to focus on growth largely through brownfield expansion of existing mines and improving evacuation along with it.
Development of greenfield mine (Deposit 13), which has been planned through joint venture with Chhattisgarh Mineral Development Corporation, will add a capacity of 10 MTPA in next four to five years, N Baijendra Kumar, CMD, said during the 61st annual general meeting.
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NMDC was the largest iron ore producer of 32.4 million tonne in FY19 with a market share of 24% in merchant mining and 15% in India’s total production (including captive) for FY19. The company saw a drop of 3% year-on-year in market share due to suspension of mining activities in its Donimalai mines in Karnataka having production capacity of 7 MTPA.
Kumar said that about 334 mines (49 working and 245 non-working) are due for renewal in 2020. Among them, 16 iron ore mines are currently operative in Odisha with a combined production capacity of about 55-60 million tonne.
During the year under review, NMDC has achieved iron ore production and sales of 32.4 million tonne, respectively and PAT of Rs 4,642 crore. The net worth of the company was Rs 25,952 crore as on March 31, 2019. The company has declared dividend of 552%, which is Rs 5.52 per share for 2018-19 involving an outgo of Rs 1,690 crore.
NMDC is developing intermediate stockpile to accommodate about 5 lakh tonne of iron ore cargo at Kumar Maranga (Chhattisgarh), which is likely to commence in current financial year. On the global front, NMDC has Mining Lease at Bulyang’Ombe, Tanzania. The company is in the process of making detailed exploration and setting up of a pilot-scale processing plant for gold in its mining lease in Tanzania. Legacy Iron Ore Limited Company based in Perth, Australia, in which NMDC has 78.6% equity stake, is carrying out exploration in its 21 exploration tenements in iron ore, gold, base metals and tungsten.