Chhattisgarh is set to attract the lion's share in the proposed Rs 70,000 crore capital expenditure (capex) plan outlined by the country’s largest iron ore mining company National Mineral Development Corporation (NMDC).
NMDC unveiled the plan at a vendor meet in Hyderabad on Tuesday. The company aims to bolster its production capacity to 100 million tonnes per annum (MTPA), build infrastructure, and transform the digital ecosystem in the next five years.
“Of the Rs 70,000 crore, the maximum share of the capex plan will be invested in Chhattisgarh,” said a senior company official, adding that Chhattisgarh projects have been the backbone of the physical and financial performance of the country's single largest iron ore producer.
NMDC operates four iron ore mechanised mines in Chhattisgarh and Karnataka. Of the four mines, Chhattisgarh has the major share in the company's output.
In FY24, NMDC produced 45.10 million tonnes (MT) of iron ore, of which 32.43 MT was produced from the mines in Chhattisgarh. It accounted for over 71 per cent of NMDC’s total iron ore production.
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Noting that expansion in Chhattisgarh would be a priority, the officer said the maximum share of the capex plan would be invested in the state. NMDC had planned to enhance the production in Chhattisgarh’s two projects.
“NMDC is waiting for required clearances to increase production capacity to 30 MT by 2030 in Kirandul,” the officer said, adding that it is building new loading facilities and increasing screening plant capacity to enhance production capacity to 31 MT in Bacheli.
NMDC is also increasing the capacity of the Kottavalasa-Kirandul (KK) line from 28 MTPA to 40 MTPA. The company is laying a 15 MTPA slurry pipeline, developing a 4 MTPA beneficiation plant in Bacheli, and setting up a 2 MTPA pellet plant at Nagarnar, with plans to expand it to 6 MTPA.
Amitava Mukherjee, Chairman-cum-Managing Director (Additional Charge) of NMDC said: “Our partners in progress should take this early head start, make financial arrangements, build up their resource base, deliver on timelines, and bring nothing but the best to NMDC.”
He said 100 MT (production) by 2030 was a priority for NMDC and a once-in-a-lifetime opportunity for building a global mining powerhouse. The public sector enterprise promised ease of doing business and solicited speed and quality of the highest order from its partners in return.