August 22, 2008

NMDC to scout for new iron ore deposits in Chhattisgarh

Reuters reported that National Mineral Development Corp is looking to explore new iron ore deposits in Chhattisgarh.

The report cited a NMDC official as saying that "We have applied for acreage permit, looking at the possibility of low grade iron ore deposits in the state. It would need two to three years to ascertain the kind of deposits available. The investments on further prospecting will only be decided after completing the preliminary work.”

NMDC recently signed a joint venture with the Chhattisgarh government for developing a new deposit at Bailadila, but the actual mine production from the site could take three to four years. Bailadila has 14 iron ore deposits with high quality iron ore.

The official said that NMDC's iron ore production in the financial year ending March 2008 was likely to rise to 31 million tonnes from 27 million last year. It has a target of raising iron ore production to 50 million tonnes by 2015-16.

NMDC, which accounts for about 15% of iron ore production in India, operates 3 mines, 2 in Chhattisgarh and 1 in Karnataka. It is a leading supplier of iron ore to domestic steel companies such as Rashtriya Ispat Nigam Limited, Essar and JSW Steel.