NMDC receives LoI for Bailadila iron ore mine in Chhattisgarh

• Bailadila Iron Ore Deposit-4 is located north of Deposit-5 on the western flank of the Bailadila range of hills, lying at a distance of about 135 km towards south-west of Jagdalpur
• The LoI has been issued to NMDC-CMDC, which is a joint venture company (JCV) between NMDC and Chhattisgarh Mineral Development Corporation (CMDC)

New Delhi: NMDC Ltd has received a Letter of Intent (LoI) from the Mineral Resource Department, Government of Chhattisgarh, for Bailadila Iron Ore Mine, Deposit-4, in South Bastar, Dantewada district, Chhattisgarh, the PSU said in a regulatory filing to the stock exchanges on Tuesday. "The Mineral Resource Department, Government of Chhattisgarh vide letter dated 26th June 2021 has issued Letter of Intent (LOI) for Bailadila Iron Ore Mine, Deposit-4, South Bastar, Dantewada District in favour of NMDC-CMDC Limited (NCL). Raipur, a JV Company of NMDC Limited (holding 513 equity share capital) along with CMDC (Chhattisgarh Mineral Development Corporation) (holding 493 equity share capital), for iron ore mining over 646.596 Ha.in Dantewada Forest Division, Chhattisgarh," said NMDC.

Bailadila Iron Ore mine

Bailadila Iron Ore Deposit-4 is located north of Deposit-5 on the western flank of the Bailadila range of hills, lying at a distance of about 135 km towards south-west of Jagdalpur. It is a big and homogeneous iron ore deposit having onsite reserve of approximately 107 MT with an average grade of Fe of 65.39 percent. On September 30, 2019, the Ministry of Mines had granted its prior approval for reservation of Bailadila Iron Ore Deposit-4 (Total Area 646.596 Ha.) in favour of NMDC-CMDC Ltd, (NCL) for the purpose of prospecting and mining of iron ore. 

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The backdrop

The news comes as NMDC Ltd's Offer for Sale (OFS), which opened on Tuesday for non-retail investors, was subscribed 2.14 times. NMDC is India's single largest iron ore producer. It produces about 35 million tonnes of iron ore from three fully  mechanised mines located in Chhattisgarh and one in Karnataka.

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