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NMDC gears up to increase iron ore output

09 Aug 2011 Evaluate

National Mineral Development Corporation (NMDC) is ramping up its production to ensure adequate supplies of the raw materials to steel plants and other allied industries. The company produced 25 lakh tonnes of iron ore last month, the highest ever monthly production and about three lakh tonnes more than the previous month. It is looking at touching a production of about 7.5 million tonnes in the current quarter, which is about 15 per cent more than the last quarter.

This move comes after the apex court allowing the company to resume mining operations in its Bellary region mines. It will be producing one million tonnes of ore from these mines. While it will be supplying the material to companies with which it has long-term contracts, it will also divert some iron ore from its Bailadila mines to new customers. It has long-term contracts with JSW Steel, Essar Steel, Rashtriya Ispat Nigam Ltd and the Lanco Group.

NMDC will continue its exports to Japan this fiscal, but the quantum of exports will be lesser in the wake of the tight domestic market position. It has got the approval to export 3.3 million tonnes of ore this fiscal.crackcrack

NMDC Share Price

89.78 2.60 (2.98%)
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