NMDC has announced a capital expenditure (Capex) allocation of ₹2,200 crore for the financial year 2025. The investment is aimed at establishing a slurry pipeline and new processing plants to enhance the company’s production capacity, with an ambitious goal of reaching 100 million tonnes (MT) by 2030.
Amitava Mukherjee, Chairman and Managing Director (Additional Charge) of NMDC, emphasised the company’s focus on sustainable growth. “Our roadmap is not just about increasing production; it’s about doing so responsibly. We are dedicated to reducing our environmental impact while positively contributing to the communities we serve,” Mukherjee stated, underscoring NMDC’s commitment to sustainability and innovation.
The expansion is in response to rising domestic and international demand for iron ore, driven by rapid industrialisation. NMDC’s strategic investment plan will focus on boosting production and evacuation infrastructure. Key initiatives include the development of advanced slurry pipelines, pellet and beneficiation plants, and the expansion of stockyard networks.
A flagship project under this plan is a 135-kilometer slurry pipeline from Bacheli to Nagarnar, designed to be both eco-friendly and cost-effective. The pipeline is expected to significantly reduce reliance on traditional, carbon-intensive transportation methods. Alongside, new Screening Plants III at Kirandul and Donimalai will enhance NMDC’s processing capabilities, enabling the company to meet increased production demands without compromising quality.
NMDC’s rail transport capacity is also set to expand, with plans to increase the KK line’s capacity from 28 MTPA to 40 MTPA. The construction of a 15 MTPA slurry pipeline and blending yards will further bolster the company’s operational efficiency. Other major projects include a 4 MTPA beneficiation plant in Bacheli and a 2 MTPA pellet plant in Nagarnar, with future plans to expand the latter to 6 MTPA.
To maximise iron ore utilisation, NMDC is innovating by blending low-grade ore with high-grade ore and utilising tailings and slimes more efficiently. At its R&D Centre, a pilot-scale beneficiation testing facility is working on upgrading low-grade ore using best practices from global benchmarks.
The company is integrating digital technologies to improve its operations. Fleet Management Systems (FMS) are currently deployed at the 11B mine, with plans to roll out to other sites. The Mine Transport Surveillance System (MTSS) is already operational at key locations such as Kumaraswamy, Donimalai, and the pellet plant.
NMDC’s digital transformation strategy includes integrating belt scales with SCADA and ERP systems for real-time production data, further enhancing efficiency and operational transparency. The company’s adoption of the SAP S/4 HANA-based ERP system, implemented in 2021, has unified production, sales, and HR functions across the organisation.
NMDC’s strategic expansion aligns with India’s vision for self-reliance in the steel and mining sectors. By increasing production from 45 MnT in FY24 to 50 MnT in FY25, NMDC is setting the stage to reach its target of 100 MnT by 2030, raising its domestic market share from 20% to 25%.
NMDC is also exploring new avenues, including the commencement of production at its 8 MnT coking coal block by FY26, aimed at reducing India’s dependency on coking coal imports. Internationally, through its subsidiary, Legacy India Iron Ore Limited, NMDC is pursuing opportunities in critical minerals like lithium, cobalt, and nickel, with operations already underway in Australia.
The company’s commitment to sustainability extends to its energy initiatives. NMDC has registered a 10.5 MW wind project with the UNFCCC and has undertaken extensive afforestation efforts, planting around 3 million trees. NMDC is also focusing on customer needs by maintaining stockpiles near steel clusters and exploring opportunities in other minerals such as bauxite, manganese, diamonds, and gold.
NMDC’s vision for 2030, backed by innovation and sustainability, marks a significant step forward for the Indian mining sector. The company’s comprehensive expansion plan not only strengthens India’s industrial capabilities but also positions NMDC as a leader in the global mining landscape.
