Hyderabad | Aug 30, 2017: Hit by the global downturn, state-owned National Mineral Development Corporation (NMDC) has made a downward revision of its production target by 2018 -19 from 75 MTPA to 50 MTPA.

The company has also revised its production target by 2021-22 to 67 MTPA from 100 MTPA, according to its latest annual report.

NMDC achieved production of 34 million tonnes (MT) and sales of 35.6 MT during last fiscal which is the highest ever achieved since inception of the company.

A long-term strategic management plan (SMP)- Vision 2025- was formulated by NMDC in 2015 as per which its iron ore mining capacity was envisaged to be increased to 75 million tonnes per annum (MTPA) by 2018-19 and 100 MTPA by 2021-22.

Since the formulation of SMP, the business environment for commodities/iron ore witnessed severe downturn, necessitating a relook at the ambitious growth agenda.

Prices of steel products and iron ore have come down significantly and global surplus scenario is likely to prevail in the foreseeable future for both steel and iron ore industry globally, the report said.

"Taking into account the market scenario, the SMP was reviewed in March, 2016 and expansion targets have been re- worked to 50 MTPA by 2018-19 and 67 MTPA by 2021-22," NMDC said in the report.

During 2016-17, the company recorded a turnover of Rs 8,830 crore, Profit Before Tax of Rs 4,294 crore and Profit After Tax of Rs 2,589 crore.

On the market outlook it said, the iron ore mining industry is expected to witness enhanced competition over the next few years even as domestic iron ore production is on the rise, with production increasing by over 20 per cent in the last two financial years.

Domestic iron ore production including captive in 2016-17 was at 190 MT while the same stood at 155 MT in 2015-16 and this trend is likely to continue in the near term, it added.

"On the other hand, the threat of higher iron ore imports looms large, especially on the west coast, with lower global prices and lower seaborne freight rates.

Additionally, with domestic steelmakers now having the option to integrate backwards with acquisition of iron ore mines through auction route under MMDR Amendment Act 2015, the market for merchant miners may be affected adversely in the medium to long-term," it said.

NMDC saw a total of Rs 3,468 crore as capital expenditure during 2016-17.

(Source: http://indiatoday.intoday.in/)