Iron ore mining major NMDC Ltd plans to deploy a capital expenditure of Rs 3,600 crore this year and Rs 4,000 crore next fiscal, as part of its long-term plans to invest Rs 40,000 crore for expansion and diversification by 2022.
Narendra Kothari, Chairman and Managing Director, NMDC, said the recent Government moves to bring about certain restrictions on import of steel items has had a positive impact on domestic companies and demand is also likely to pick up during the latter part of the year.
Speaking on the sidelines of NMDC’s 57th annual general meeting here today, Kothari said NMDC has also begun discussions with some buyers in Japan to enter into long-term export contracts. The existing arrangement for supply of ore expired in March 2015, where about 10 per cent of the produce was exported.
Amidst a challenging environment, he said, “it is heartening that the demand for NMDC’s iron ore remained encouraging, due primarily to higher domestic demand for quality iron ore.”
“Defying the market trend, NMDC was able to achieve record production and sales during financial year 2015. We achieved the highest ever iron ore production of 30.4 million tonnes and iron ore sales of 30.5 MT during 2014-15, crossing the 30-MT barrier for the second year in succession,” he told shareholders.
Outlining the company’s Vision 2025 that chalks out an aggressive growth agenda for increasing iron ore mining capacity to 75 MT per annum by 2019 and 100 MTPA by FY 2022, he said this may entail an investment outlay of about Rs 40,000 crore.
To strengthen exploration and to forward-integrate value-added business, pellet and steel has been taken up.It is proposed to strategically diversify into other commodities based on growth potential, and invest in other geographical areas selectively, based on mining potential and business environment.
The company is also looking at diversifying into mining of certain minerals required for defence and space applications, he said
No comments:
Post a Comment