NMDC Steel Plans Commissioning of Nagarnar Plant by End-June

SEATTLE (Scrap Monster): India's leading iron ore mining company NMDC, has planned the commissioning date of its recently demerged steel plant NMDC Steel at Nagarnar in Chhattisgarh to June-end, 2023. The last deadline set by the Ministry of Steel was 31 March, 2023.

NMDC’s investment in the steel plant with an annual capacity of three million tonne (MT) is around Rs 23,000 crore. The preparation is nearly complete as all ancillary units comprising coke oven batteries, power blowing unit, oxygen plant and central plant have been commissioned, and blast furnace refurbishment is underway for the plant to start producing hot rolled coils (HRCs) by the end of June.

NMDC Steel has a long-term procurement contract with the iron ore mining unit to the tune of four to five MT per annum, as the new unit would require 1.8 tonne of iron ore to produce one tonne of steel. Major steel mills, including JSW, AMNS India and RINL are the key buyers.

NDMC has set a production and dispatch target of 46 to 50 MT of iron ore for FY24, with a capex target set at 2,000 crore. Some capex projects are in various stages of implementation, tendering and approval. Further, to ramp up production and dispatch to 100 MT, various other projects would require approval and are likely to be implemented around FY25 onwards. From FY25, the annual capex is expected to be 3,000 crore.

Courtesy: www.projectstoday.com