NMDC to up Bailadilla iron ore supplies

State-owned National Mineral Development Corporation (NMDC) is aiming at 190-195 lakh tonnes of iron ore despatches from Bailadilla mines during the 2006-07 financial year.

During 2005-06, iron ore dispatches from these mines were raised by nearly 15 lakh tonnes as compared with the preceding year.

"Buoyed by strong demand, both production and despatches were raised in 2006-07. The corporation despatched about 183 lakh tonnes of iron ore from its mines in FY06, as compared with 168 lakh tonnes in the previous year," NMDC sources told Business Standard.

According to sources, NMDC supplied 64 lakh tonnes of iron ore to the Visakhapatnam Steel Plant (VSP), about 49 lakh tonnes to the Vizag-based Hy-grade Pellets, 20 lakh tonnes to Ispat Industries Limited, 5 lakh tonnes to Vikram Ispat and 45 lakh tonnes to the state-owned MMTC Limited for exports to Japan in 2005-06.

During the period, NMDC earned about Rs 1,750 crore on Bailadilla ore.

In view of greater demand this year from local companies and the Centre's advice to NMDC to give first priority to the domestic industry in supply of iron ore instead of exports, the corporation has agreed to enhance supplies to Ispat Industries Limited and Hy-grade Pellets.

As a result, NMDC foresees drop in ore exports this year, sources said. During the last financial year, NMDC supplied 45 lakh tonnes of iron ore to MMTC Limited for exports to Japan. But this year, supplies to MMTC would not exceed 30-35 lakh tonnes, they added.

Keeping the increasing demand for iron ore from local industries in mind, the corporation was expediting the process of opening a new mine at Bailadilla, sources said.

"The corporation may close mine No 14 very shortly due to fall in the yield, and it has decided to open mine No 10B as early as possible at a cost of around Rs 400 crore. NMDC is expecting to extract one million tonnes of iron ore in the first year from this new mine," they said.