NMDC eyeing to raise capacity

Published on May 29, 2015 00:10:27 AM
Business

NMDC which began trial production from its new project Bailadila Iron Ore Deposit 11B in Chhattisgarh has set its eyes on commissioning its pellet plant at Donimalai, opening up new mine-Kumaraswamy Iron Ore Mine in Karnataka with a capacity of 7 million tonne. The company like in the past will establish special purpose vehicles (SPVs) in association with State governments.

NMDC has recently signed MoUs for setting up Ultra Mega Steel Plant in Bastar region with Ministry of Steel, Chattisgarh government and SAIL; development of railway line from Jagdalpur to Rowghat with Chattisgarh government, SAIL and IRCON; Slurry Pipeline & Pellet Plant with Chattisgarh government in the presence of Prime Minister.

NMDC reported 31 per cent dip in standalone net profit to Rs 1,347 crore for the fourth quarter ended March 31, owing to reduced sales from iron ore mining while it posted a net profit of Rs 1,962 crore in the previous year. The company’s standalone total income fell by 27 per cent to Rs 2,829 crore from Rs 3,885 crore in the previous year. For the fourth quarter of 2014-15, its profit before tax and interest from iron ore mining declined to Rs 1,617 crore, from Rs 2,511 crore during the corresponding period last year.

NMDC chairman Narendra Kothari said, NMDC during the year inspite of low demand of Steel could maintain its production and sales levels at above 30 MT mainly due to sustained and collaborative efforts of all disciplines. The company is aiming to touch 100 million tonne mark by 2021-22. The company has firmed up a capex plan of `3,500 crore this fiscal.

Net sales from iron ore fell to Rs 2,799 crore from Rs 3,840 crore during the quarter. For the entire 2014-15 fiscal, NMDC's standalone net profit was Rs 6,422 crore, compared to Rs 6,420 crore in the previous fiscal. Total standalone income grew by 3 per cent during the year to Rs 12,356 crore from Rs 12,058 crore in 2013-14.

Kothari said, the company is holding talks with Jharkhand government for a SPV for an iron ore mine. The company is seeking opportunities in diamond mining in Madhya Pradesh. There are also plans to invest Rs 200 crore in Jammu & Kashmir. On the overseas front, the company is evaluating several assets in different mineral categories including talks being held in Russia for a potash asset.