NMDC Not to Invest in Fresh Steel Projects

SEATTLE (Scrap Monster): NMDC- the state-run Indian miner announced that it has no plans to invest in new steel projects. The company will continue to focus on mining sector. It plans to boost its iron ore production to 100 mt by 2030, in line with the country’s ambitious plan to augment steel production by the end of the current decade.

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According to Sumit Deb, Chairman and Managing Director, NMDC, it initially had plans to diversify its business and move up the value chain, mainly driven by setting up of the Nagarnar steel plant in Chattisgarh. However, in October 2020, the government approved the demerger plan and sale of the Centre’s 100% stake to a strategic buyer. It has now come to a conclusion that steel is not an area to look into, Deb noted.

Meantime, NMDC will continue to build up its position as a strong mining company. In order for the country to reach the annual steel production goal of 300 mt of steel by 2030, the iron ore production must be tripled when compared to today’s level. In fiscal year 2021-’22, NMDC’s iron ore production had touched a new record of 42 mt. It must be noted that the production had totalled only around 34 mt in 2020-’21.

The company looks forward to commence offshore mining in minerals such as lithium, cobalt and nickel. Also, it has plans to start exploration of other minerals like gold and copper in the African region.