NMDC sets 100 MT iron ore production target by 2030

State-owned NMDC aims to utilize 97 per cent of its production capacity to produce 35 million tonne MT of Iron ore this fiscal and has set an ambitious target of producing 100 MT by 2030, in a bid to ensure a continuous and smooth supply of the mineral for steel makers, according to a senior official.By the targeted year 2030, the government also aims to increase Indias total steelmaking capacity to 300 MT.

PTI | New Delhi | Updated: 17-01-2021 14:42 IST | Created: 17-01-2021 13:38 IST
NMDC sets 100 MT iron ore production target by 2030
Representative Image Image Credit: Pixabay

State-owned NMDC aims to utilize 97 per cent of its production capacity to produce 35 million tonne (MT) of Iron ore this fiscal and has set an ambitious target of producing 100 MT by 2030, in a bid to ensure a continuous and smooth supply of the mineral for steel makers, according to a senior official.

By the targeted year 2030, the government also aims to increase India's total steelmaking capacity to 300 MT. Iron ore is the main ingredient used for producing the metal besides coking coal.

''In the ongoing financial year, NMDC has targeted to utilize 97 per cent of its production capacity to produce 35 MT of Iron ore. Going forward, NMDC has a target of achieving 50 MT production capacity by 2023, and 100 MT by 2030,'' P K Satpathy, NMDC Director, Production, told PTI.

He said while the country's overall production reported a sharp fall of 27.5 per cent at 110.5 MT in April-November of ongoing fiscal, from 152.3 MT in year ago period, National Mineral Development Corporation (NMDC) produced 18 MT during the period under review, against 18.9 MT and April-November of FY 2019-20, registering a decline of just 4.7 per cent.

On the supply and price of iron ore, the official said the prices of the mineral are soaring globally. The values for 62Fe (ore with 62 per cent iron content) reached approximately at USD 172 per tonne by the middle of December. This level was last recorded in early 2013.

Demand growth, particularly in China, is driving the increase in international cost of the raw material. The effect of the same is being felt in the domestic market as well, he said.

''However, a closer look into the industry prices show, NMDC's iron ore prices are still at a discount of 30-40 per cent than the imported iron ore price and 20-25 per cent lesser than the domestic iron ore suppliers,'' he said.

Satpathy noted that supply normalcy is yet to be achieved and the sharp shortages in India and abroad is aiding the iron ore rally.

Higher demand for finished products like steel and the disruption in Odisha have also resulted in high iron ore prices. Aggravating the situation is the problem of non-operationalisation of merchant mines in India, he said.

He said a disruption in supply of iron ore in the current financial year is owing to the expiry of 49 merchant iron ore mines of which 34 were operational on March 31, 2020. Of these, 17 are operational mines in Odisha and contributed to about 25 per cent of the total domestic production.

Speaking on the company's ambitious target, NMDC CMD Sumit Deb said ''it is imperative that NMDC would contribute significantly to the economy in line with the Prime Minister's vision of an 'AatmaNirbhar Bharat'. NMDC will leave no stones unturned to convert India's abundant mineral resources into reserves and boost domestic production.'' He said COVID-19 caused uncertain times and that had a withering effect on the performance of all sectors including mining and steel Industry.

''We learnt early on that the way forward was to mobilise our operational capabilities owing to which NMDC was able to overcome the initial setback in production and we are sure we would excel the cumulative figures of the previous financial year in spite of the COVID challenges,'' Deb said.

NMDC understands the need for wider economic and national interest and stands strong in support of the domestic steel industry. India is committed to becoming the key player in building a globally competitive steel industry with a crude steel capacity of 300 MT by 2030-31, as envisioned by National Steel Policy, he said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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