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Phalguna Jandhyala

Hyderabad, July 26 NMDC-CMDC Ltd, the joint venture between State-run National Mineral Development Corporation and Chhattisgarh Mineral Development Corporation (CMDC), has decided to expedite work on Deposit Number 13 of the Bailadila mines in Chhattisgarh.

The decision was taken at its first board meeting held recently.

“The deposit has around 300 million tonnes (mt) of high-grade iron ore, but as we start exploration the quantity of minable ore is expected to increase,” Mr Rana Som, Chairman of NMDC-CMDC Ltd, told Business Line.

He also said about Rs 1,500 crore would be invested in the next three years and production was expected to start in about three years’ time.

The joint venture, in which NMDC holds 51 per cent and CMDC the rest, was registered earlier this year.

According to Mr Som, the debt-equity ratio for the proposed investment would be 2:1 and the project will have an annual capacity of 10 mt. The ore has ferrous content of 67 per cent on average, he added.

“The mine would meet the requirements of the steel, sponge iron or pellet plants that have been set up or which are likely to come up in the Bastar region of the State,” Mr Som said.

The mine is also expected to cater to customers outside Chhattisgarh after meeting the State’s requirement and this would include any short-lifted or un-lifted quantities.

“The decision on the pricing of the ore will be taken by the board of the joint venture company. It would, however, not be higher than the price charged by NMDC from its customers,” he said. Mr Som also said that the board has taken a resolution to work on exploration and exploitation of other minerals like coal within the country.

More Stories on : Outlook | Mining & Quarrying | Steel

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