NMDC Limited: Steeling Up for a Strong Economic Growth

How has NMDC ensured India’s position in top steel manufacturing nations, globally?

NMDC has been instrumental in catapulting India to the forefront of global steel manufacturing nations. With a legacy of over six decades in mining excellence, NMDC’s cutting-edge operations in Bailadila at Chhattisgarh and Donimalai at Karnataka form the bedrock of India’s steel security. Our Baila Ore, with its 64 – 66% Fe purity, stands tall as a hallmark of excellence, driving India’s infrastructure development and construction ambitions.

As India’s steel industry continues to soar, NMDC is dedicated to sustainable practices and consistent supply of high-grade products. We’re aggressively expanding production capacity to meet the escalating demand for quality iron ore, aiming to reach 100 MT production capacity by 2030. This ambitious goal will enable us to fulfill 20-25% of India’s iron ore requirements, aligning perfectly with the nation’s vision of being self-reliant and a steel powerhouse.

Beyond iron ore, NMDC’s strategic diversification into gold mining at Mt. Celia in Western Australia, coupled with joint venture partnership for coal in International Coal Venture Limited and subsidiary Legacy Iron Ore Limited for Iron Ore, Gold and other strategic minerals demonstrates our commitment to securing minerals of national interest. This portfolio expansion not only contributes to India’s economic growth but also reinforces our nation’s quest for self-reliance, reinforcing NMDC’s global mining dominance.

What are the kinds of investments that NMDC has made in integrating advanced technology and its impact?

At NMDC, we’ve embarked on what we call the ‘NMDC 2.0,’ where we’re transforming how we operate, from manpower and machinery to material planning. At the heart of this transformation lies a strategic investment in digital innovation, integrating ERP systems, business intelligence platforms, and advanced data analytics. These tools provide real-time insights, empowering informed decision-making and refining production & sales strategies and enhanced operational efficiency.

On the ground, NMDC is leveraging pioneering technologies such as drone-based exploration, vision enhancement systems, transport surveillance, and rapid wagon loading mechanisms. These advancements elevate supply chain performance, safety, and resilience, setting new industry benchmarks. Company’s significant ₹200 crore investment in last 5 years in research and development demonstrates its dedication to innovation, paving the way for continued growth, improved efficiency, and an unwavering competitive edge.

NMDC’s technological transformation is a testament to its commitment to innovation and sustainability, shaping the future of mining and inspiring a new era of growth and excellence.

Our vision is to empower India’s self-sufficiency in critical minerals, ensuring strategic resource independence.

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What have been your focus areas in upgrading existing facilities and expansion plans?

NMDC is steadfastly pursuing its vision to become a global mining leader, focusing on both domestic and international growth. Towards our ambitious goal of 100MT by 2030, we are enhancing production from our existing mines in the Bailadila region and Donimalai, while also developing new mining assets – Deposit 13 and Deposit 4 through our joint venture, NMDC-CMD Limited, in Chhattisgarh.

Domestically, we are strengthening our infrastructure through strategic initiatives. These include commissioning Screening Plant III at Kirandul and Donimalai, expanding the Kottavalasa-Kirandul (KK) rail line capacity from 28MTPA to 40MTPA, laying a 15MTPA slurry pipeline, and setting up blending yards. Additionally, we are developing a 4MTPA Beneficiation Plant in Bacheli and expanding our Pellet Plant from 2MTPA to 6MTPA in Nagarnar.

Internationally, NMDC is forging strategic partnerships to tap into strategic minerals, including iron ore, coking coal, lithium, and battery minerals, in regions such as Australia, Africa, Southeast Asia, and Latin America. Notable projects include our recently commenced Gold Mining Project in Mt. Celia, a joint venture at Mount Bevan in Australia, and our coking/thermal coal mine in Mozambique. We have successfully produced and exported coal from our Benga Mine and are pursuing further leases in Western Africa, Australia, and other regions. Our commitment to sustainable growth and responsible mining practices guides our expansion, ensuring NMDC’s position as a leading mining powerhouse.

Additionally, our approach of creation of Works Department vertical in Projects and the revision of Delegation of Power has empowered our Head of the Projects and Department Heads with the freedom to make the decisions and drive progress, avoiding procedural roadblocks. This move has enhanced productivity and injected a sense of ownership and accountability into our teams and given legs to execute projects on time.

Which are the areas where the organization opted for joint ventures and the objective behind the decision?

NMDC has forged strategic joint ventures to propel growth, augment capabilities, and harness synergies in pivotal areas. Key joint venture areas include exploration and mining of strategic minerals, development of critical infrastructure, research and development, and diversification into new markets.

NMDC’s Chhattisgarh-based joint venture, NMDC-CMDC Limited, is a key driver of our domestic expansion. Deposits 13 and 4 will add 28 MT to our iron ore production capacity, providing critical momentum toward achieving our 2030 target of 100 MT.

On the international front, we’ve made headway in Australia through our subsidiary Legacy Iron Ore Limited with the promising joint venture at Mount Bevan. The partnership in International Coal Venture Limited (ICVL) has yielded significant results, with the Benga Mine producing 1.24 MT and exporting 1.31 MT of coal in FY24. Further leases in Western Africa, Australia, and beyond are in the pipeline and we are targeting 5-10% of revenue from international operations. By diversifying income streams and mitigating risks, NMDC bolsters its global competitiveness.

NMDC’s technological transformation is a testament to its commitment to innovation and sustainability, shaping the future of mining and inspiring a new era of growth and excellence.

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Our vision is to empower India’s self-sufficiency in critical minerals, ensuring strategic resource independence. Through these joint ventures, NMDC pioneers innovation, sustainability, and growth, reinforcing NMDC’s position as a global mining leader.

As NMDC is committed towards people and planet, what are the initiatives of the company for ensuring sustainability in whatever it does?

NMDC is spearheading a sustainable revolution with the integration of responsible practices into every facet of our operations. Our three-pillar appr oach – Environmental Stewardship, Social Responsibility, and Responsible Mining – drives our commitment to people and the planet.

NMDC’s sustainability initiatives have yielded impressive results. We’ve reduced our GHG emission intensity by 24% in the last decade and increased renewable energy usage by 40% in FY24, boosting our confidence towards the goal to achieve Net Zero by 2040. Our Sewage Treatment Plants and Effluent Treatment Plants at project locations are treating domestic sewage and effluents. In our pursuit of Responsible Mining, we’re adopting eco-friendly ore transportation, through slurry pipelines and railways, reducing carbon emissions significantly.

NMDC actively supports national initiatives to create carbon sinks through afforestation efforts, ecological monitoring, and collaborative Green Action Plans with State Forest Departments. As a responsible corporate citizen, NMDC supports India’s Net Zero Emissions goal by 2070 through sustainable mining practices, community development, and innovative solutions. Our legacy of efficiency and sustainability solidifies our position as a global industry leader, ensuring a greener, safer, and more efficient tomorrow.

Happy employees ensure healthy organizational growth. What are your efforts in this direction to ensure their professional and self-development growth?

At NMDC, our employees are the architects of our triumph. They are the backbone of NMDC’s growth story. The company is dedicated to nurturing their growth and well-being through innovative programs. One such initiative is the CMD Excellence Awards, which celebrate outstanding performances and motivate our team members to strive for excellence.

Fostering a culture of growth, we prioritize professional development through regular training, seminars, and workshops, ensuring our team stays ahead of the curve. Additionally, we offer technical empowerment programs to enhance skills and expertise. Our commitment to employee well-being extends beyond the workplace. We provide secure housing, comprehensive medical facilities, and insurance, recognizing the importance of supporting our employees’ loved ones. Notably, our medical coverage includes dependent daughters and sisters.

NMDC has invested in building thriving townships in remote areas, offering modern amenities such as recreational clubs, co-operative societies, and state-of-the-art sports facilities, aimed at improving the quality of life of employees and their families.

This commitment to employee well-being has created a positive & supportive work environment, fueling growth. The tangible results are impressive: output per manshift (OMS) is more than 47 tonnes and the value added per employee is north of Rs.2.0 crores annually.

Which are the areas the organization would be paying more attention to during the rest of FY25 and FY26? Your message of hope to the nation on mineral and rare earth security of India, as well?

As NMDC gears up for the rest of FY25 and FY26, our focus will be squarely on ‘Mission 2025’, an ambitious growth and sustainability drive that cements NMDC as a Responsible Miner. The key objective is to achieve 50 MT of iron ore production by FY25, bolstering India’s infrastructure development and paving the way for the 100 MT iron ore capacity by 2030.

To achieve this, NMDC is investing will invest heavily in expanding and upgrading its mining capabilities and infrastructure, while diversifying into other vital minerals to boost India’s self-reliance and net-zero goals. Sustainability takes center stage, with plans to minimize environmental impact through cutting-edge technologies and resource management.

Employees are the backbone of NMDC’s growth story. The company is dedicated to nurturing growth and well-being through innovative programs.

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This dual focus on growth and sustainability will be driven by key initiatives, including energy and water management, climate action, biodiversity protection, waste management, and prioritizing the health and safety of employees and communities. Company’s goal is to make responsible mining a reality at every stage.

As India navigates emerging challenges, including the shift away from hyper-globalization, NMDC’s efforts will contribute significantly to the nation’s mineral and rare earth security. With robust domestic demand and a growing working-age population, India’s growth prospects remain strong, and NMDC is poised to play a vital role in shaping a sustainable future.

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