NMDC, the largest producer of iron ore in India, has set a target of 35 million tonnes iron ore production for 2015-16. The sale, which would include the inventory, will be about 38 million tonnes during the financial year, according to its chairman and managing director Narendra Kothari.
At present, the production stands at 30 million tonnes. The year 2014-15 was a tough one as the company had lost production due to Hudhud cyclone, Kothari said, adding that NMDC still hoped for a better production than in 2013-14.
The company, which has cash reserve of about Rs 20,000 crore, is now looking to own fertiliser mineral assets. It has already signed a memorandum of understanding with a Russian company.
“We will invest some monies for the fertilizer mineral. At present India imports all of the phosphate requirements,” he said, without disclosing about the potential investments it would make for the raw material for potash.
NMDC wants to increase the production more than three fold to 100 million tonnes per annum in 10 years. It wants to achieve 70 million tonnes by 2018-19, he said, adding that capex plans for this would be readied by May this year. This would include development of new mines, new slurry pipelines and others.
The CMD said the country earlier used to export iron ore when the prices were $116 a tonne in April 2014 and demand from steel companies was high. The prices have dived to $57-60 level now, making exports unattractive due to falling demand. However, taking advantage of the sea route, some companies have imported about 15 million tonnes.
“We want to increase the production of iron ore so that there are no import at least,” said Kothari Friday at the 10th movement for efficiency and transparency event.
On the 3 million tonnes per annum integrated steel plant that it is setting up at Nagarnar in Chhattisgarh, Kothari said it would be ready by December of 2016. The plant involves a total capex of over Rs 15,000 crore.
Source: mydigitalfc.com