NMDC: World-Class Miners that Propel India’s Growth Goals

How are you building NMDC 2.0 so as to play a defining role in ‘development’ for an Atmanirbhar Bharat?

Towards playing a defining role in the country’s journey to Atmanirbhar Steel, NMDC has set an ambitious goal to cross the 50-million-tonne mark by FY25 and subsequently reach the 100-million-tonne mark by FY30. As India’s largest iron ore mining company, we are gearing up to contribute to the target of achieving a steel making capacity of 300 MTPA by FY31, as envisioned by the National Steel Policy.

Achieving the highest ever Q1, Q2, and Q3 volumes in company history in FY24 and operationalizing the Kumar Marenga intermediary stockyard, NMDC has set the momentum for 50 million tonnes of iron ore production. We also recorded our best-ever CAPEX in FY23, demonstrating that our investment is keeping pace with the ambitions and aspirations of NMDC 2.0.

Ensuring the availability of high-quality iron ore for over 6 decades, NMDC has been a key enabler in India’s industrial progress. In our transformation to NMDC 2.0, we are committed to make an unparalleled contribution to the domestic steel industry, expand our mineral and geographical footprint, and foster a deeper relationship with responsible mining by playing a pivotal role in shaping the economy, preserving the environment, and contributing to society.

As one of India’s largest CPSEs, what are the focus areas of NMDC to maintain its leadership position in the industry?

With NMDC standing as India’s largest iron ore producer, commanding a substantial one-sixth domestic market share, a strategic vision to maintain its leadership position becomes imperative. We have made a comprehensive strategic management plan, targeting a production output of 48-50 MT for FY24, 67 MT for FY26, and 100 MT by FY30, to meet the growing requirements of iron ore in the Indian Steel market.

Towards this vision, NMDC has established a ‘Works Organization’, committed to streamlined execution of ambitious projects in our pipeline, through close monitoring and adherence to timelines. This has led to a clear segregation of production operations and capacity-building operations, identifying responsibility centers to secure milestones mapped to timelines.

Our strengths include gold standard benchmark in mining, high-grade ore (64%), skilled workforce, robust technical capabilities, experience of working in adverse terrain, rich exploration experience, and sufficient cash reserves allowing us to invest in capacity building. Leveraging its strengths, NMDC is diving into digital transformation and ambitious expansion. These endeavors are strategically poised to contribute to enhanced performance and secure NMDC’s position as a market leader in the dynamic and evolving mining sector.

NMDC is committed to build smart and sustainable mines. Some recent technological interventions that are optimizing processes, minimizing waste, and enhancing our resource utilization capacity are Drone Based Exploration, Fleet Management System, Automatic Sample Collection System, Rapid Wagon Loading System, and automated capturing of production and despatch information in real-time, says Amitava Mukherjee, CMD (Additional Charge), NMDC

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You have played a significant role in the digitalization of NMDC. Could you briefly share about this revamp and how it has benefitted the organization?

The advent of digital technology has profoundly transformed the accessibility and richness of data available to mining companies, enabling a shift to automation. Towards the vision of digitally empowered mining, NMDC is leveraging cutting-edge technologies to elevate operational efficiency, safety, and sustainability. Key to achieving this vision are digital initiatives such as edge computing, using drones for exploration, and predictive real-time analysis.

Our investment in automatic (robotic) sampling and analysis systems is positioning NMDC as a pioneer in mining processes. Embracing technologies such as IoT, AI, and Data Analytics further solidifies NMDC’s position as a technology leader, fostering adaptability to latest scientific operations.

As the first CPSE to adopt SAP S4 HANA in the country, NMDC displayed a commitment to technology, automation, and digitalization. Today it serves our entire value chain giving us complete visibility from Pit to Port. A key advancement in the digital journey of NMDC, it is improving our overall business process and is poised to act as a lighthouse project for the Indian Mining Industry.While we make groundbreaking strides in technology adoption and innovation, our efforts to enhance the company’s technical and digital strength are paying rich dividends with milestone production and productivity.

What are the other advanced technologies being used to ensure efficiency and minimal wastage of minerals?

NMDC is committed to build smart and sustainable mines. Some recent technological interventions that are optimizing processes, minimizing waste, and enhancing our resource utilization capacity are Drone Based Exploration, Fleet Management System, Automatic Sample Collection System, Rapid Wagon Loading System, and automated capturing of production and despatch information in real-time.

The Integration of ERP with these systems signifies a move towards operational excellence, aiming to minimize human intervention and enhance productivity. Real-time dashboard reporting is bringing heightened operational efficiency, minimized downtime, and improved decision-making.

Parallelly, our adoption of mining equipment simulators is optimizing equipment performance and improving safety. Simulator-based training reduces the need for on-site training with actual machines, contributing to operational efficiency and potentially extending equipment lifespan. This focus on safety and operator skills enhances NMDC’s market standing, reflecting a commitment to responsible mining practices.

In essence, these initiatives form a cohesive strategy for mining, fostering a future where real-time data processing, drone technology, and predictive analysis converge to redefine industry standards and uphold efficiency, safety, and sustainability.

Considering that mineral reserves are depleting, what strategy have you adopted for ‘Responsible Mining’?

We mine in ecologically sensitive areas and it is our responsibility to maintain harmony with nature. At NMDC, we constantly reinvent ourselves and as our cutting-edge technology augments the iron ore production capacity, it also builds an environment-friendly and energy-efficient infrastructure for us to grow.

NMDC is investing in sustainable mining solutions for a greener future. Our sustainability strategy focuses on the areas that represent key opportunities in reducing Carbon Footprint i.e. Scientific Mining, Biodiversity Conservation, and Green Energy transition. Recognized with 5-star ratings for our mines by the Ministry of Mines. We conduct extensive environmental monitoring studies and GHG accounting, preserve biodiversity through extensive plantation efforts at project locations, and invest in green energy transition with Solar and Wind energy projects.

The company has reduced its total per tonne GHG emission intensity by 24% in the last decade. At our major iron ore mining projects, we have installed Continuous Ambient Air Quality Monitoring Systems (CAAQMS) to effectively monitor and minimize air pollution. We are rapidly reducing non-renewable energy consumption and expanding the renewable energy share across all our mining units.

NMDC has set up a Beneficiation and Pellet Plant in Donimalai and a similar plant on a larger scale is underway in Bailadila, committed to the goal of ‘Zero-Waste Mining’.

NMDC has shown steady growth despite market volatility. How buoyed are you by the performance of your organization and the endeavors being made to meet higher benchmarks of a financially self-sustaining entity?

NMDC is self-sustainable, commanding a strong financial position with Net Worth and Cash Balance of over Rs. 24,000 crores and Rs. 11,700 crores respectively as of September 30, 2023. We produce one of the highest qualities of iron ore and are one of the lowest-cost miners in the world. The market appreciates our strong emphasis on productivity enhancement and cost optimization, with steady growth despite market volatility.

Going forward, NMDC has laid an ambitious plan for expansion of the existing mines and acquisition of new green/brownfield projects. Infrastructure development, construction of slurry pipeline, and doubling of the rail line, to achieve our target are in full swing. NMDC has invested a capital expenditure of Rs. 1,352 crores in the current fiscal so far up to December 2023. With consistent investment in capacity building, we are confident to set new benchmarks in volumes and continue to fortify our financial strength.

Additionally, NMDC envisions a target of 5% to 10% of its revenue coming from overseas operations by 2030, expanding its presence and revenue streams globally and enhancing its buoyancy.

Our effort is to foster a healthy and happy work environment, build a sense of camaraderie and community, and lend committed support to the aspirations of our employees, says Amitava Mukherjee

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Could you share about areas of NMDC’s foreign collaborations, and the way forward in its global vision?

In a watershed moment in company history, NMDC commenced Gold Mining at Mount Celia in Western Australia recently. We have also signed a Joint Venture agreement to unlock the potential of magnetite resources at Mount Bevan and explore minerals of strategic interest in Australia. The new minerals and prospects in our portfolio are boosting confidence in our roadmap to diversification and global expansion.

NMDC’s progress in this endeavor is being led by the subsidiary, Legacy Iron Ore Limited which has exploration tenements of iron ore, gold, nickel, base metals, and tungsten in the mining powerhouse of Australia.

Also, International Coal Ventures Ltd (ICVL), a joint venture company of SAIL, RINL & NMDC, has a coking/thermal coal mine in Mozambique, South Africa acquired in 2014 and NMDC holds a 26% stake in IVCL. In FY23, Benga Mine, one of the operational assets of the company, produced about 1.63 million tonnes (both low ash & high ash) and exported 1.71 million tonnes.

NMDC’s strategic significance lies in its vast reserves of high-grade iron ore, proven technical expertise, six and a half decades of mining heritage, and a strong financial foundation. We are diligently assessing opportunities in foreign geography, prioritizing lucrative and sustainable prospects.

NMDC has rolled out transformational social initiatives focusing on five core areas – robust healthcare, ensuring quality education for all, investing in skill development, building community infrastructure, and ensuring safe drinking water.

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How are you ensuring employee happiness, both professional and personal, to build an enabling synergy for propelling the organization?

A happy workforce directly contributes to increased productivity and is intertwined with the growth of the company. Our effort is to foster a healthy and happy work environment, build a sense of camaraderie and community, and lend committed support to the aspirations of our employees. NMDC engages with the employees with a host of interventions that empower them with the right tools for learning, skill enhancement, creative stimulation, and well-being.

A happy employee is the most productive resource to the team and we are committed to build a culture where achievement of high levels of productivity becomes a way of life. To this end, NMDC hosts employee happiness and growth-centric initiatives like Ikigai, Art of Living, Jayganga, and Professional Residential Programs on technical, managerial, and behavioral verticals as well as on health and wellness, fostering experiential learning.

With a deep consciousness that an employee invests the better half of their life committed to the company, NMDC takes pride in playing its part in their personal progress as well. We have modern townships well-equipped with welfare and civic amenities like Community Centers, Recreational Clubs, Co-operative Societies, and a comprehensive Sports Infrastructure. With a robust education and healthcare network at Projects in remote locations, NMDC ensures a social infrastructure of the highest quality for its people.

Could you share about NMDC’s commitment towards empowering local communities and leaving behind green footprints in its mining areas located in fragile ecosystems?

NMDC has been mining in some of the remotest regions of the country since 1958 and has strived to enhance the quality of life for the people living around its mines. Since the early 1960’s, NMDC brought hospitals, schools, and employment opportunities to these deep hamlets, winning the company its social license. NMDC has rolled out transformational social initiatives focusing on five core areas – robust healthcare, ensuring quality education for all, investing in skill development, building community infrastructure, and ensuring safe drinking water. These initiatives have changed the dynamics of Bastar in Chhattisgarh and Donimalai in Karnataka where our major mining projects are located. Our CSR interventions stem from a unique Stakeholder Consultation Mechanism that is celebrated by the community and recommended for emulation by the Government of India.

Deeply conscious of the sensitive ecosystems in which we operate, NMDC is committed to build a green and sustainable future. The company is leading the way towards carbon neutrality and environmental stewardship. Our state-of-the-art, sustainable, and scientific mines are lauded by the Indian Bureau of Mines with a 5 Star Rating. Towards the goal of becoming a role model for Responsible Mining in India and beyond, NMDC is committed to social and economic growth, cultural and environmental preservation, and building a better and brighter future for its people.

What are the accolades won by NMDC that make you proud to be its CMD and your pledge towards nation-building?

NMDC is one of the most dependable and respected companies of the Government of India. Leading the Indian Mining Sector for close to seven decades, we have developed some of the best-known mines in the country, ensured a steady supply of iron ore, and contributed to the boom of the national economy. We are the first mining company in the country to cross the milestone of 40 million tonnes of annual iron ore production. Our iron-strong commitment to nation-building is inspiring our transformation to NMDC 2.0.

For our steadfast dedication towards the nation and its people, we have been honoured with some prestigious accolades in FY24. Recently, the Honourable Vice President of India, Shri Jagdeep Dhankhar, presented us with the SCOPE Eminence Award in recognition of our CSR initiatives.

In 2023, NMDC was featured in the ‘Top 50 Most Profitable Companies of India’ list by Fortune 500 and ‘India’s Most Valuable Companies’ list of Business Today. Continuing to win accolades for building mineral security, NMDC received the ‘Best Navratna’ and the ‘Mining Minerals’ awards at the D&B PSU Summit as well as the ‘Mineral Development’ and ‘Employer Brand of the Year’ awards at ASSOCHAM Business Excellence Awards.In 2023, NMDC earned a very special honour that our team will always cherish. As we commissioned the Nagarnar Steel Plant, the Honourable Prime Minister of India, Shri Narendra Modi, visited Chhattisgarh to dedicate the NMDC Steel Plant to the nation.

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