NMDC sets Rs 2,200 cr Capex in FY25 for setting up slurry pipeline

Hyderabad: NMDC Ltd., India’s largest iron ore producer and a Navratna public sector enterprise, has allocated Rs 2,200 crore for FY25 to establish a slurry pipeline and new processing plants. This investment aims to boost the company's production capacity to 100 MT by 2030. The ambitious expansion will significantly improve NMDC’s infrastructure and operations, elevating its global standing while aligning with India’s industrial growth trajectory.

Amitava Mukherjee, CMD (Additional Charge), NMDC, emphasized that the transition from 45 MnT to 100 MnT by 2030 is ambitious yet rooted in sustainability and innovation. "Our roadmap is not just about increasing production; it’s about doing so responsibly. We are dedicated to reducing our environmental impact while positively contributing to the communities we serve," he stated with a commitment to sustainable growth”.

NMDC’s expansion is driven by the growing domestic and international demand for iron ore, fueled by rapid industrialization. The company’s strategic investment plan focuses on boosting production capacity and improving evacuation infrastructure. Key initiatives include the development of advanced slurry pipelines, pellet and beneficiation plants, and a robust network of stockyards.

A flagship project in this plan is the 135-kilometer slurry pipeline from Bacheli to Nagarnar. This eco-friendly, cost-effective pipeline will reduce reliance on traditional, carbon-intensive transportation methods. Additionally, the new Screening Plant III at Kirandul and screening plant III at Donimalai will enhance NMDC’s processing capabilities, enabling the company to handle increased production volumes while maintaining high quality standards.

NMDC is also expanding rail transport by increasing the KK line’s capacity from 28 MTPA to 40 MTPA, laying a 15 MTPA slurry pipeline, and constructing blending yards. To maximize utilization of iron ore resources, the company is developing a 4 MTPA beneficiation plant in Bacheli and a 2 MTPA Pellet Plant at Nagarnar, with plans to expand the latter to 6 MTPA. NMDC is also focusing on blending low-grade ore with high-grade ore, efficiently utilizing tailings and slimes. A pilot-scale beneficiation testing facility at its R&D Centre is developing processes for upgrading low-grade ore, incorporating best practices from international benchmarks.

The company is currently operating Fleet Management Systems (FMS) at 11B, with plans to extend this technology to other NMDC mines in the near future. Additionally, the Mine Transport Surveillance System (MTSS) is operational at Kumaraswamy, Donimalai, and at the pellet plant. For enhancing efficiency and operational agility, the Rapid Wagon Loading System is also in place at Kirandul project.

NMDC’s digital transformation is integral to its growth strategy. The company has integrated belt scales with SCADA and ERP systems for real-time production data, improving efficiency and operational transparency. The SAP S/4 HANA-based ERP system, implemented in January 2021, unifies production, sales, and HR functions.

Additional digital initiatives include an Online Vigilance Portal, Customer Portal (Darpan), Ex-employees’ portal, Supplier Relationship Management, and Digital Invoicing. NMDC is also advancing with Automatic Sample Collection and Analysis, SAP Learning Solutions, HRD Dashboard, CCTV Surveillance and AI/Machine Learning technologies.

Alignment with National Goals

NMDC’s strategic roadmap aligns with India’s vision of leadership in the steel and mining sectors. The company’s expansion plan supports government initiatives for self-reliance and reduced import dependency in mining and metallurgy. NMDC aims to increase production from 45 MnT in FY24 to 50 MnT in FY25, with the ultimate goal of reaching production capacity of 100 MnT by 2030-31, thereby raising its domestic iron ore market share from present 20% to 25%.

Future-Focused Vision

Looking ahead, NMDC is preparing to commence production at its 8 MnT coking coal block by FY26. This move aims to reduce India’s dependency on coking coal imports. NMDC is also pursuing overseas mining opportunities for critical minerals like lithium, cobalt, and nickel through its subsidiary, Legacy India Iron Ore Limited, including lithium mining operations in Australia.

Additionally, NMDC has registered a 10.5 MW wind project with the UNFCCC and has planted approximately 3 million trees through afforestation efforts. The company is also focusing on customer requirements by maintaining stockpiles near steel clusters and exploring new opportunities for iron ore, bauxite, manganese, diamonds, and gold, with future operations planned beyond FY 2030.

NMDC’s goal of 100 MnT by 2030 represents a bold vision for the future of Indian mining. By integrating innovation, sustainability, and operational excellence, NMDC aims to lead the global mining sector and drive significant economic growth in India.