NMDC’s growth plan will be reviewed in line with the global and Indian iron ore market scenario.
Earlier, the company had approved the strategic management plan (SMP), ‘Vision 2025’,according to it, the iron ore mining capacity was envisaged to be increased to 75 MnT pa by FY19 and 100 MnT pa by FY22. This was in line with the roadmap charted out by the Ministry of Steel, to augment India’s steel production to 300 MnT pa in the next decade.
Since the formulation of SMP, the business environment for commodities/iron ore witnessed severe downturn, necessitating a re-look at the ambitious growth agenda. The prices of steel products and iron ore have come down significantly in the last one year.
The subdued market conditions are likely to continue in the foreseeable future for both the steel and the iron ore industry globally, with supplies exceeding demand. As per NMDC’s latest annual report of FY16,’Vision 2025′ of the company is under review to align the growth plan in line with global and Indian iron ore market scenario.
Outlook for NMDC
NMDC proposes to augment its production capacity of iron ore from the present level of about 37 MnT to 50 MnT by FY19 and 67 MnT by FY22.
Major projects under construction
1. Construction of Bailadila Deposit 11 B mine at an enhanced capacity of 7 MnT pa ROM
2. Kumaraswamy iron ore mine project with 7 MnT pa capacity. Production is scheduled in FY17
3. Pellet production at 1.2 MnT pa pellet plant in Donimalai is scheduled in FY17
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