NMDC to increase capacity

Published on March 29, 2015 14:17:25 PM
Business
The National Mineral Development Corporation (NMDC) is planning to build its 3 million tonne per annum (mtpa) integrated steel plant in Nagarnar in Chhattisgarh next year.

"We are in advanced stage of erection, civil works are getting completed and equipment is being procured at present. We will be preparing for commissioning by December 2016. The company has ambitious plans to reach 100 million tonne capacity mark for iron ore by 2021-22, increasing from 30 million tonne in terms of production and sales at present. By 2018-19, we will reach 65 million tonne production and sales mark. We will come out with the production plan in two months for targets for next 3-4 years,” NMDC CMD Narendra Kothari said.

"The plant will come up near Jagdalpur, with an estimated outlay of `15,500 crore. We have already invested 6,000 crore,” he said, on the sidelines of Movement for Efficiency & Transparency (MET) held at Hyderabad, organised by NMDC and mjunction.
 
"We have signed an MoU with Ministry of Steel on targets and we will touch 35 million tonne production target for 2015-16. We will sell 38 million tonne of iron ore during this period. NMDC has reserves of Rs 20,000 crore. Almost 90 per cent of NMDC sales are through long term contracts, while 10 per cent is being sold in open auction.”

Viresh Oberoi, mjunction, managing director, said, "E-auction market scope is huge in India. We have sold 12 million tonne of steel so far online for Indian producers. Tata Steel and SAIL who are the parents companies, are also our clients. We had helped in doing away with the middlemen and the ‘mafia’. We are in the steel supply chain and have sold iron ore, crude iron, ferrous and steel, making us available in the downstream and by products of steel. We have also been involved in auction of coal. We took up the spectrum auction too which has resulted in raising Rs 1.10 lakh crore. In 2013-14, we have done transactions worth Rs 48,000 crore and in 2014-15, this could go up to 1,80,000 crore with spectrum alone contributing a major chunk on our e-market place.”

Sharing other developments, Kothari said that International Coal Ventures (ICVL) will increase production capacity of its coal assets in Mozambique. ICVL, a joint venture of SAIL, Coal India, RINL, NMDC and NTPC, had acquired Rio Tinto's operating coal mine in Mozambique last year. 
 
"The coal has already been imported and used in India already. We are partnering for coking coal with companies. We are looking for tie ups for potash mineral as it is not currently produced in India. We have signed a MoU with Acron, a Russian company, and due diligence is in progress,” he informed.

On the fluctuations in iron ore prices, he said, "The country needs 150 million tonne of iron ore and we are producing only 30 million tonne now. We have a transparent price mechanism. Prices are market driven. No one company can control or impact the prices in India.”