NMDC to invest $1 billion on infrastructure, ramping up iron ore output

At Bailadilla in Chhattisgarh, NMDC is building a rapid wagon-loading system for evacuation and setting up a new slurry pipeline

New Delhi: National Mineral Development Corporation Limited (NMDC) plans to invest about $1 billion on infrastructure in the next three years to help ramp up iron ore production, a senior official of the state-run enterprise said. Director (Finance) Amitava Mukherjee said that the cost of the upcoming three-million tonne capacity steel plant would go up to Rs 19,000 crore against the estimated Rs 15,500 at the time of conception. The public sector undertaking (PSU) has already invested nearly Rs 14,500 crore on the plant.

'Mine capacity is being increased'

"The mine capacity is also being increased. We are investing about $1 billion…The production of steel-making would go from the current capacity of 146 million tonnes per annum to 300 MTPA, and I see a market in future in domestic ore consumption," he said.

"About $200 millions have already been invested in different projects. We expect all this (investment) to be completed by 2022 to 2023," Mukherjee said.

Other upcoming projects

At Bailadilla in Chhattisgarh, NMDC is building a rapid wagon-loading system for evacuation and setting up a new slurry pipeline. It is also in the process of doubling of railwayline between Kirundul and Kothavalasa (KK line), Mukherjee said.

The state-run company is also setting up screening plants in Karnataka and Chhattisgarh.

The upcoming steel plant in Chhattisgarh

Speaking about the upcoming steel plant in Chhattisgarh, Mukherjee said the company has invested Rs 2,000 crore and the plant is expected to be commissioned before the end of this fiscal.

"Mecon (project consultant) is doing the revised estimation. Ballpark figure of the total investment on the plant should be between Rs 18,000 crore and Rs 19,000 crore," he said.

"If you compare the cost per tonne for a greenfield project all over the world, we are at par. The cost of production at the mining head is as good as that of the top big players around the world," he said.