Iron ore-mining major NMDC plans to highlight its potential to diversify into newer related segments in the steel sector and the efforts it has undertaken to step up production at a Non-Deal Investor Presentation in Singapore.

The corporation, which is hosting the meet on Friday, will highlight the National Steel Policy 2017 and the National Mineral Policy 2019.

It will also explain opportunities for investment in the steel sector.

Increase production

NMDC is also seeking to ramp up its planned ore evacuation capacity from 53 million tonnes to 80 million tonnes by FY22.

This will be done by stepping up transportation through railways, road and slurry pipeline, and further strengthening of the rail network.

On value addition, which the company plans with an outlay of $2,218 billion (currently under review), NMDC stated that the integrated steel manufacturing facility at Nagarnar is likely to be commissioned in the second half of 2019-2020.

This includes flat products such as HR plates and coils; automotive steel; and API-grade steel of about 2.7 MT.

At 100 per cent capacity, the steel plant is projected to contribute about $1.7 billion to the topline of the company, with 25 per cent EBIDTA

The slurry pipeline taken up at a cost of $ 415 million is likely to be commissioned by 2021-22.

This is expected to reduce the cost of ore evacuation from the Bailadila sector to the Vizag port by 55 per cent.

NMDC, which achieved a production of 35 MT, has sewn up plans to step up the output of iron ore mining capacity to 67 MT by FY22.

The plans includes strengthening exploration and forward integration through the value-added business of pellets and steel.

While the government has targeted 300 MT of steel production by 2030, the per capita consumption is pegged at 75 kg as against the global average of 225 kg, showing the huge potential going forward.

The sector contributes 2 per cent of the country’s GDP.

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