NMDC to open new iron ore mine

The state-owned National Mineral Development Corporation (NMDC) is planning to open a new mine at Bailadilla to meet the growing demand for iron ore in domestic and international markets.

The corporation has already prepared a detailed project report (DPR) and submitted it to the central government for its approval. As per the present estimated costs, NMDC has to invest more than Rs 400 crore to open the proposed mine.

"It takes a minimum of three years to open the mine, and NMDC is expected to generate 4 million tonnes of iron ore," said the sources at NMDC.

During the last financial year , the corporation generated 155.9 lakh tonnes of iron ore from Bailadilla mines. It has targeted to mine 169 lakh tonnes this financial year.

During the current financial year upto December end, it supplied 30 lakh tonnes of iron ore to MMTC, 36.06 lakh tonnes to Visakhapatnam Steel Plant (VSP), 27.24 lakh tonnes to Essar Group, 7.58 lakh tonnes to Ispat Industries Limited and 2.95 lakh tonnes to Vikram Ispat Company.

At present, NMDC is finding it difficult to meet the demand for iron ore from several private traders and industries.

Visakhapatnam Steel Plant is contemplating to acquire an iron ore mine on its own to meet its demand. Keeping this growing demand in mind, NMDC has decided to invest Rs 400 crore in opening new mine.

At present, it is operating five mines in Bailadilla, of which No.14, No.11C and No.5 mines are old blocks.

Since the production of iron ore from these mines is gradually depleting, the corporation opened No.10 and No.11A mines last fiscal. Now NMDC is proposing to open No.11B mine for its future needs. "As soon as we get approval from the central government, we will start works on the new mine," informed the sources.