Government-run NMDC Ltd. is reportedly increasing its iron ore mining capacity and has made plans to set up a novel integrated steel production facility worth 2.2 billion dollars (approximately INR 15335 crore).
As per the company’s investor presentation, the new steel facility would possibly be commissioned in the second half of 2019-2020.
The public sector navratna reportedly stated that at hundred percent operating capacity, the steel facility will generate 1.7 billion dollars (approximately INR 11750 crore) to the firm’s top line with EBITDA (earnings before interest, tax, depreciation, and amortization) of twenty-five percent.
Reportedly, the factory will manufacture flat products such as API grade steel, automotive steel, coils, sheets, and hot rolled plates of about 2.7 million tonnes.
According to credible estimates, the consumption of steel in India is projected to grow at a CAGR of 7.4 percent in the coming twelve years. In India, the steel consumption per capita is 75 kg compared to the world’s 225 kg, which indicates that the business domain has an immense opportunity for growth with respect to consumption.
For the record, NMDC (formerly known as National Mineral Development Corporation) garnered proceeds worth 16.6 billion dollars in the duration 2017-18 (approximately INR 1.14 lakh crore).
Reportedly, the firm’s other value addition venture is a slurry pipeline valuing 415 million dollars in project’s first phase. It will transport pellet feed concentrate to Jagadalpur from Bailadila.
If reports are to be believed, the venture will be commissioned during 2021-2022 first half and would decrease the evacuation cost from Bailadila sector to Vizag harbor by approximately 55%.
Sources familiar with the matter claim that NMDC is looking to amplify its mining capacity to 67 million tonnes per annum by the financial year 2022 from the present 43 million tonnes per annum.
The firm is focusing on boosting iron ore mining capacity, adding value, and enhancing global reach in a bid to drive business growth, reported sources. The added capacity will come from its greenfield and brownfield expansions.