Date | Jun 22, 2016:

NMDC Ltd’s Chhattisgarh located mines produced 3.29 million tonnes (MT) of iron ore and registered sales volume of 3.31 MT upto May 2016, officials informed.

Quite recently, NMDC incorporated a subsidiary company by the name of “NMDC-SAIL Limited” in order to develop, sell and supply iron ore from the allocated mining resources in the State of Chhattisgarh.

NMDC would hold 51 per cent stake in the subsidiary company while SAIL would hold 49 per cent stake , NMDC Ltd has informed the BSE in its filing.

It may also be recalled that NMDC had earlier applied for seeking as many as seven prospecting licenses (PLs) for mining iron ore from the Chhattisgarh Government in Dantewada district of Bastar, officials informed.

Notably, the company has achieved iron ore production of 16.60 million tonnes (MT) (provisional) from its mines in Chhattisgarh as on March 31, 2016, the company informed the Bombay Stock Exchange in its filing.

The company further informed that it achieved sales of 16.40 MT during the aforesaid period.

The NMDC Board at its meeting recently had recommended highest ever 1st interim dividend of 950 percent for the year 2015-16 amounting to Rs 3,766 crore, a company statement had informed.

Notably, NMDC has several iron ore mines in leftist insurgency-hit Dantewada district in Chhattisgarh. The mines which have the finest quality of iron ore, are basically located at Kirandul and Bacheli areas which jointly form a sprawling Bailadila hill.

On the other hand, the Steel Authority of India Ltd (SAIL) is co-ordinating the construction of Rail line from DaIlirajhara to Rowghat covering a distance of 95 km with Indian Railways in Chhattisgarh. The project for doubling of Railway line between Kirandul and Jagdalpur in Chhatisgarh’s insurgency ridden Bastar region is expected to be complete by January 2019, official sources informed.

Notably, NMDC Ltd had also signed a Memorandum of Understanding with the Union Ministry of Railways on December 21, 2012 and the aforesaid project would be helpful in significantly augmenting evacuation capacity of NMDC’s Bailadila Sector mines by rail from the existing 28 MTPA to 40 MTPA of iron ore. NMDC had deposited an amount of Rs150 crores with East Coast Railway and the expenditure incurred as on March 31, 2015 was Rs132.00 crore, sources informed.

For execution of the project, the Railways has divided the 150 km length of doubling work into three Sections namely, Jagdalpur to Silakjori 45.50 km, Kirandul to Gidam 52.23 km and Silakjori to Gidam 52.73 km.

NMDC Ltd has applied for seeking as many as seven prospecting licenses (PLs) for mining iron ore from the Chhattisgarh government in Dantewada district of Bastar, officials informed.

Notably, the Union Steel and Mines Ministry has plans of doubling installed capacity of NMDC Ltd’s upcoming 3 MTPA integrated steel plant coming up at Nagarnar in Bastar region in due course once the plant is commissioned.

The company is expecting commercial production of its 3 MTPA capacity steel plant in Chhattisgarh to commence by the middle of 2017. The plant is expected to be ready by December 2016 and trial of same will start by December 2016 itself, officials stated.

In order to increase the domestic capacity of steel production, a concept of Special Purpose Vehicle (SPV) has been introduced, officials stated. Two MoUs have already been signed by the states of Chhattisgarh and Jharkhand for setting up Greenfield steel plants with initial capacity of 3 million tonnes per annum (MTPA) each to be later enhanced to 6 MTPA. More than Rs70,000 crore will be invested for setting up of these steel plants.

NMDC has also planned to generate about 70 MW of captive power using gases from steel making processes in the upcoming 3 MTPA Nagarnar steel plant. The power would be generated from gases released from blast furnace, coke oven and ‘LD gases’. The total power requirement of the steel plant would be around 420 MW in which the mines, pellet plant and the slurry pumping system would require around 120 MW of power, officials stated.

The remaining 350 MW power would be conventional in nature which would be fulfilled by the captive power plant and the Chhattisgarh State Power Distribution Company Ltd. Source: Pioneer

(Source: http://www.hellenicshippingnews.com/)