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State-owned iron ore mining major NMDC expressed confidence of better performance in the coming quarters by prioritising its operational capabilities and strategies for an improved outcome in the new financial year.
Addressing the shareholders at NMDC’s 62nd Annual General Meeting, Sumit Deb, CMD, NMDC, said “during the year all of the five mining leases of Bailadila Iron Ore Mines in Chhattisgarh have been extended and the Ministry of Coal has declared NMDC as successful allottee of Tokisud North Coal Mine (Non-Coking Coal) & Rohne Coal Mine (Coking Coal) under Section-5 of the Coal Mines (Special Provision) Act, 2015.”
On the Donimalai Mines, he said, on September 15, the Karnataka Cabinet cleared the application to start mining operation. This development is a positive culmination of the dialogue between the company, Government of Karnataka and Government of India. The actual resumption of mining operations in Donimalai mines is expected to start shortly.
Deb explained, the Board of Directors of the company has accorded in-principle approval to the proposal to demerge NMDC Iron & Steel Plant (NISP) Nagarnar located in Chhattisgarh.
He said, “CY2019 has been a challenging one. As India’s largest Iron Ore mining company, NMDC is a key stakeholder in the mine to metal value chain, and the company was impacted by the unfavourable economic conditions which reflected in the FY performance.”
Justifying its reputation as India’s leading iron-ore miner, NMDC has made a steady progress amidst Covid pandemic. Turnover of the company for the year under review declined 3.74 per cent year on year at ₹11,699 crore as against ₹12,153 crore in the previous financial. The margins were also impacted. Profit after tax (PAT) was ₹3,610 crore compared to ₹4,642 crore in the previous financial year 2018-19, a decrease of 22.23 per cent.
The domestic prices of iron ore ruled at a 22-month high as the removal of Covid-19 lockdown restrictions boosted demand. Since July 2020, NMDC has recorded a rise in overall production and sales as compared to the corresponding period in July 2019, despite the current uncertain situation due to Covid-19.
NMDC production in August of 2.19 million tonnes (MT) and sales 2.57 MT was up by 13 per cent and 7 per cent respectively over the corresponding period last year. Total production stood at 1.62 million tonnes (MT) in August compared to 1.41 MT in August 2019. Total sales stood at 1.79 MT in August 2020 compared to 1.49 MT in August 2019.
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