Plus   Neg

NMDC Expects FY13 Production To Touch Over 30 MT

State-owned iron ore producer NMDC Ltd. Wednesday said in New Delhi that its production during the current fiscal year would increase by 20 percent to more than 30 million tonne or MT, compared to 27 million tonne in 2011-12, due to improved output from the existing mines, reports said, quoting Chairman N.K. Nanda.

NMDC had produced 25.19 million tonne iron ore in FY11, up six percent over 23.8 million tonne recorded in 2009-10.

He said production of the steel-making raw material in FY12 could match the level of expectation because a proper evacuation system could not be put in place.

"Our production in last fiscal was constrained because evacuation system was not in place. Stockpiles were getting frequently full. This year, we are going to start the unifloor system of evacuation. The Railways have assured us that if the system starts by the end of this quarter, it will give us three million tonnes extra transportation," he said.

NMDC plans to incur capex of Rs.4,655 crore in FY13. Of which, Rs.3,513 crore (75 percent) will be spent on its upcoming three million tonne per annum steel plant at Nagarnar in Chhattisgarh and the balance Rs.1,142 crore on existing iron ore mines.

Nanda said the Bailadila and Kumaraswamy mines would also start production this fiscal. Bailadila will start production by December this year, while the Kumaraswamy by March next year. However, these can be streamlined only in the next fiscal, he added.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Follow RTT