NMDC is targeting 42mn mt iron ore output in FY2022, up from 34mn mt produced in FY2021 driven by the restart of mining Donimalai, Karnataka, reported Business Line quoting the company’s CMD Sumit Deb. The company has planned a capex of Rs30bn ($414mn) to build a slurry pipeline from Bailadilla to Jagdalpur and for the steel plant at Nagarnar.
In February NDMC restarted operations at Donimalai mines, which has an annual production capacity of 7mn mt. Also, recently the government of Chhattisgarh renewed four of NDMC’s mining lease in the state.
The company aims to increase its iron ore output to 67mn mt by 2025 and 100mn mt by 2020. From April 2020 to February 2021, NDMC’s production increased by 1.4pc to 29.52mn mt from the prior period.
NDMC is focusing on developing additional mines at Bailadilla, from where it is building a slurry pipeline to its pellet plant in Jagdalpur in the first phase of its capex plan. The pipeline will be later extended to Vizag an additional capex of Rs40bn with a total investment of around Rs60bn.
($1=Rs72.43)