NMDC Not Considering Investment In New Steel Projects: Sumit Deb
State-run NMDC has no plans of investing in new steel projects and it will continue to focus on the mining sector: NMDC Chief
State-run miner NMDC has no plans of investing in new steel projects and it will continue to focus on the mining sector, its Chairman and Managing Director Sumit Deb revealed.
The PSU looks to increase its iron ore output to 100 million tonnes by 2030 to support the country's ambitious steel production programme, the CMD told PTI.
He was replying to the question that if NMDC would continue its interest in the steel sector after the sale of its under-construction 3 million tonnes per annum Nagarnar steel plant in Chhattisgarh to a strategic buyer.
NMDC had planned the Nagarnar steel project to diversify its business and move up the value chain. However, in October 2020, the Union Cabinet approved the demerger of the plant from NMDC, and the sale of the Centre's entire stake to a strategic buyer.
"NMDC will continue to build up its position as a strong mining company in India as well as at the global level. Steel is not an area where the company is looking," Deb told PTI.
"We have a target of increasing our annual production to 100 MT by 2030 to support the country's ambitious steel production plan. To produce 300 MT steel by 2030, iron ore will be needed in three times the quantity compared to today," he said.
"In 2021-22, the company produced a record 42 MT of iron ore, up from about 34 MT in the preceding fiscal," Deb said.
Besides iron ore, Hyderabad-based NMDC is also involved in the exploration of a wide range of minerals like copper, rock phosphate, limestone, dolomite and gypsum.
According to the official, NMDC Ltd. is looking to start offshore mining of minerals like lithium, cobalt and nickel — which are used in electric vehicles — in Australia.
The company also has plans to explore other minerals like gold and copper in countries like Africa, Tanzania and Zimbabwe.
On the demerger of NSP, the CMD said, "Its progressing and the process is expected to be completed within the ongoing second quarter."
"The plant is expected to be operational by September-end," he said.