NMDC is planning to double its iron ore exports from Bailadilla mines.
This export plan of NMDC will take place only if Visakhapatnam Steel Plant (VSP), which is facing a shortage of iron ore supplies from Bailadilla mines, manage to get captive mines. To overcome the shortage of supplies, VSP is contemplating to take mines on lease to meet its own requirements.
During the last fiscal, NMDC supplied nearly 60 lakh tonnes of iron ore to VSP. For the current year also as per the agreement, NMDC will supply 18 lakh tonnes of lump ore and 39 lakh tonnes of fine ore to VSP.
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However, for the last two months, VSP has been facing shortage of lump ore from Bailadilla mines. Actually, VSP lump ore requirement is of 22 lakh tonnes, whereas NMDC is prepared to provide only 18 lakh tonnes during the current year.
To mitigate the problem of shortage of iron ore, the management of VSP has started search for iron ore mines.