NMDC Ltd

NMDC Ltd., a prestigious Navratna Public Sector Enterprise (PSE) under the esteemed Ministry of Steel, Govt. of India, stands tall as the nation's foremost producer of iron ore. With highly advanced and mechanized iron ore mines in Chhattisgarh and Karnataka, NMDC holds the position of a global leader in costeffective iron ore production. Adding to its repertoire, the Company operates the sole mechanized diamond mine in India, nestled in the exquisite landscape of Panna, Madhya Pradesh. Embracing growth and diversification, it ventures into steel production, undertaking capital-intensive projects to fortify its domestic leadership while successfully expanding its footprint beyond national borders. NMDC Ltd is the largest iron ore producer by volume in India. The Company is engaged in exploration of a range of minerals including iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands. Their principal operations include its three iron ore mining complexes at Kirandul and Bacheli in the State of Chhattisgarh and Donimalai in the State of Karnataka, each of which consists of several iron ore mines. The company sells most of their high grade iron ore production to the Indian domestic steel market, primarily pursuant to long term sales contracts. They sell their core products, iron ore fines, lump and slimes, through the company's sales and marketing function. NMDC Ltd was incorporated on November 15, 1958, as a government company with the name National Mineral Development Corporation Pvt Ltd. During the year 1959-60, the name of the company was changed from National Mineral Development Corporation Pvt Ltd to National Mineral Development Corporation Ltd. In the year 1966, the company acquired the Panna Diamond Project. In the year 1968, they commenced production of iron ore from Bailadila Deposit No.14. In the year 1977, they commenced production of iron ore from Bailadila Deposit No.5 and Donimalai Iron Ore Mine. Also, they commenced production of iron ore from Bailadila Deposit No.11C in the year 1987. In the year 1989, the company incorporated J & K Mineral Development Corporation Ltd as a joint venture with J & K Minerals Ltd, to explore and exploit the magnesite mine at Panthal and to produce dead burnt magnesite. In the year 1998, the company was conferred with the Mini Ratna status by Department of Public Enterprise, Government of India, which enabled Board of Directors to exercise certain capital expenditure powers without reference to Government of India. In the year 2002, the company commenced production of iron ore from Bailadila Deposit No.10/11A. In the year 2008, the company was accredited as the 'Centre of Excellence' in the field of mineral processing by the Expert Group of United Nations Industrial Development Organisation (UNIDO). They entered into an MoU with Spice Metals and Minerals for the formation of a strategic partnership for planning, acquisition, development and management of metal and mineral projects outside India. During the year, the company was Conferred the Navratna status by Department of Public Enterprise, Government of India which enabled the Board of Directors of the company to exercise certain enhanced capital expenditure powers without reference to Government of India. They incorporated a joint venture 'NMDC-CMDC Limited' with Chhattisgarh Mineral Development Corporation Limited to develop Bailadila iron ore Deposit No. 13. Also, they ventured into new area - Wind Energy and they commissioned seven unit wind electricity generators having the capacity of 1.5 MW. In the year 2009, the company entered into an MoU with Steel Authority of India Limited for the development of the Arki Limestone deposit for the supply of low silica high grade limestone primarily to the steel plants of the company and Steel Authority of India Limited. Also, they entered into an MoU with the Department of Mines & Geology, Government of Jharkhand for carrying out geological exploration in Jharkhand for various minerals like iron ore, lime stone, bauxite etc. During the year 2009-10, Government of India disinvested 8.38% of their holding in the company aggregating 332,243,200 equity shares of the face value of Re.1/- each through an Offer for Sale. In January 2010, the company entered into an MoU with Department of Mines & Geology (DMG), Govt. of Andhra Pradesh and Andhra Pradesh Mineral Development Corporation (APMDC), Govt. of Andhra Pradesh for mineral exploration in the State of Andhra Pradesh. Sponge Iron India Ltd was amalgamated with the company with effect from July 01, 2010 as Sponge Iron Unit. During the year 2010-11, the company signed an MoU with OJSC Severstal, Russia, to jointly set up an Integrated steel plant with an initial capacity of 2 million TPA in Karnataka. The company incorporated a joint venture company, namely Kopano Ke Matla Investment Company (Pty) in the Republic of South Africa for exploring and exploiting the mineral resources in South Africa. In January 29, 2010, the company signed an MoU for joint exploration work for Iron ore in Kadapa, Kurnool, Chittoor and Karimnagar Districts and for Gold in Chittoor and Anantapur districts of A.P. In September 6, 2011, the company signed the contract for Coke oven Package for the upcoming 3 MTPA Integrated Steel Plant at Nagarnar, with the Consortium lead by Bhilai Engineering Corporation (BEC). The total cost of the package is Rs 1978.00 crore. The Coke Oven Plant will be executed within the overall time frame of 33 months. In October 20, 2011, the company signed the share subscription agreement with Legacy Iron Ore Ltd, Australia for holding 50% of the total shares in the capital of Legacy Iron Ore Ltd, Australia, at a price aggregating to AUD 18.89 million. In December 12, 2011, the company incorporated a special purpose vehicle (SPV) company by the name of NMDC Power Ltd for the purpose of setting up a power plant for captive power supply to the 3 MTPA integrated steel plant being constructed at Nagarnar. On 23 May 2012, NMDC signed the contract for Steel Making Shop (SMS) Package for the upcoming 3 MTPA integrated steel plant at Nagarnar, Chhattisgarh with the consortium led by M/s Siemens VAI MT GmbH & Co. (SVAI), Austria. The Board of Directors of NMDC at its meeting held on 8 October 2012 decided to fix iron ore prices for domestic customers on monthly basis from the month of October 2012. On 7 June 2013, NMDC signed Memorandum of Understanding (MoU) with MOSI OA TUNYA DEVELOPMENT COMPANY of Zimbabwe for mineral projects in Zimbabwe. NMDC plans to develop mineral assets overseas to secure raw materials for the steel industry. The designated organization of the Ministry of Tourism and Hospitality Industry, Government of Zimbabwe has invited NMDC as a strategic partner to invest in the exploration and development of the iron ore, coal, Gold and chrome tenements. This MoU will provide exclusivity to NMDC for participation in mineral projects at Zimbabwe. On 21 August 2013, NMDC announced that its wholly owned subsidiary NMDC Power Ltd. (NPL) has signed a Memorandum of Understanding (MoU) with IL&FS Energy Development Company Ltd (IEDCL), a subsidiary of IL&FS Ltd. to set up a 500 megawatt (2x250 MW) thermal power plant under joint venture at Gonda in Uttar Pradesh. On 23 January 2015, NMDC signed contract agreements with Larsen & Toubro Ltd on water packages for NMDC's upcoming 3 MTPA integrated steel plant steel plant at Nagarnar in Chhattisgarh. NMDC started the trial production of its new Project Bailadila Iron Ore Deposit 11B located in Bailadila Region in Dantewada in the State of Chhattisgarh on 29 March 2015. NMDC said at that time that it has completed this project having iron ore production capacity of 7 Million Tonnes Per Annum (MTPA) with an investment decision of over Rs 600 crore. On 29 June 2015, NMDC signed a tripartite MoU with the Union Steel Ministry and the State Government of Jharkhand for setting up of a steel plant at Jharkhand. On 3 November 2015, NMDC unveiled Vision 2025 plan that seeks to reorient its business model and strategize effectively to retain its market leadership in the domestic market and also make a mark on the global mining scene to ensure raw material security for Indian industry. A key point of NMDC's Vision 2025 is the ambitious expansion plan to increase iron ore mining capacity to 75 MTPA by 2018-19 and 100 MTPA by 2021-22. On 24 October 2016, NMDC and Mishra Dhatu Nigam Limited (MIDHANI) signed a MoU for Tungsten Mining & Development of Processing Technology. NMDC being a strong mining company with experience in acquisition of mineral assets abroad and MIDHANI having expertise in metals and alloys providing technical support and coordination for Ammonium Para Tungstate (APT) can combine their complementary strengths to pursue a win-win venture in developing the identified tungsten mineral assets in India and abroad. This alliance would strengthen both NMDC and MIDHANI to explore jointly the Tungsten assets in India and abroad for investment and development of technologies for converting Tungsten ore to APT and Tungsten powder. During financial year 2017-18, the Company commissioned Kumaraswamy Iron Ore Project, and 1.2 MTPA Pellet Plant in Donimalai Complex. Section 1 between Jagdalpur to Silakjhori, a length of 45.5 km of railway line was completed and opened for traffic. Rail line between Jagdalpur to Amagura, a length of 14.3 km of railway line was completed and opened for traffic. Crushing Plant of Dep.14 & 11/C and Downhill conveyor, additional screening lines in Bacheli & Kirandul, Rapid Wagon Loading System (RWLS) etc are envisaged. Waste mining and increase in evacuation capacity being a major area of focus for enhancing the life of mines, the schemes like beneficiation plant at Bacheli & Kirandul and Slurry pipeline from Bacheli to Nagarnar was taken up. The rooftop solar power unit at Head office was commissioned and made operative since April 2017. The Mine Transport Surveillance System (MTSS- KHADAN-CHOUKSI) at Donimalai Complex (Donimalai, Kumarswamy and Pellet Plant) was commissioned. In 2018-19, 45.50 kms line between Jagdalpur & Silakjhori, (Section-l) and 7.32 kms line between Dantewada & Gidam (Section-ll) were completed during the FY 2017-18 and opened for traffic. Further, during FY 2018-19, 9.2 Kms line between Silakjhori and Kumharsodra (Section-lll) was completed and opened for traffic. 9.2 Kms line between Silakjhori and Kumharsodra (Section-lll) was completed and opened for traffic. Further, Doubling of KK line between Jagdalpur & Ambagaon (25 km) was taken up. In 2019-20, 1 MW capacity grid connected Roof Top Solar (RTS) power plants were installed and commissioned in the month of July-2019 in various production units of NMDC (Bailadila Iron Ore Mine, Kirandul Complex & Bacheli Complex and Donimalai Iron Ore Mine, Donimalai Complex). The assembly was commissioned on 8 November, 2019. Site levelling works of Ore Processing Plant (OPP) at Bacheli and Pellet Plant at Nagarnar were completed along with soil investigation studies. In FY'20, the Company's overseas project, Legacy completed 500 mts of drilling in Gold/ Nickle tenements in Australia. Geological mapping and Geochemical Mapping completed in 5 potential sub-blocks. NMDC completed Geophysical Surveys in One Block. Topographic Surveys using SP2 60 GNSS completed. Remote Sensing Studies were completed in collaboration with NRSC. Chhattarpur Panna Block 1, Chhattarpur Panna Block 2 and Damoh Block, Panna (5 Prospective Blocks) and Additional 12 Diamond Blocks. Section I Jagdalpur to Silakjhori 45.5 km of railway line was completed & opened for traffic. 48% of the section II between Gidam to Silakjhori (52.73 Kms) was also completed. Site Levelling work for Pellet Plant at Nagarnar & Ore processing plant at Bacheli was almost completed. NMDC has also completed study of Life Cycle Assessment of Iron Ore in FY'20. Donimalai Iron Ore Mine of NMDC Ltd. resumed mining operations since 18.02.2021. Ministry of Steel, Government of India, has sold 21,95,02,378 (7.49%) equity shares @ Rs.165/- per share and raised an aggregate net amount of Rs. 3651.37 crores. The Company commissioned Additional Screening Line & up-gradation of existing conveyor at Kirandul in Jan' 21. 12.2 kms line between Kumharsodra and Kaklur was commissioned during FY 2020-21. In FY 2022-23, the Demerger Scheme of Arrangement between NMDC Limited (Demerged Company/ The Parent Company) and NMDC Steel Limited (NSL/ Resulting Company) and their respective Shareholders and Creditors, involving demerger of NMDC Iron & Steel Plant Business Undertaking (NISP/ Demerged Undertaking) from Demerged Company to the Resulting Company became effective from 3 Oct' 2022. Read More