Interview/Amitava Mukherjee, Chairman and Managing Director, NMDC
An impressive increase in sales (16 per cent) and production of iron ore (10 per cent) was witnessed during 2023-24 as compared to the last financial year. What efforts went into achieving these figures?
The volumes delivered by NMDC in FY24 were indeed impressive. The production of 45.1 MT and sales of 44.4 MT, made NMDC the first iron ore mining company in India to surpass the 45 million tonne milestone! With strategic agility towards capacity building, we outperformed the capex target for FY24 with an expenditure of Rs2,014 crore, up by 14 per cent of the target.
Strategic investment in manpower, machine, and material led to streamlined projects and enhanced operations. In FY24, a new vertical―‘Works Organisation’ was also introduced in the company line for timely execution and monitoring of projects. Some achievements of building dedicated responsibility centres in the company were commencement of operations from the Kumar Marenga stockyard, implementation of an all inclusive pricing mechanism, and development of digital business intelligence.
Our key iron ore mining projects in Bailadila and Donimalai range played a crucial role in this performance by delivering their best-ever volumes since the company's inception. The initiatives of the top management, the policy and direction from a dynamic Board at the hub and devoted and resilient workforce at the spoke have propelled the company to surpass all expectations. NMDC has demonstrated its sheer strength in FY24, inspiring confidence in the vision of producing 100 million tonnes of iron ore by 2030.
Doors to a new R&D facility were recently opened by NMDC in Hyderabad. What is your take on Research and Development at NMDC in the coming years?
NMDC has invested Rs150 crore towards research and development in the past five years, which we view as an investment in the future of the Indian mining industry. Our R&D is a part of our long standing commitment and vision anchored in the ambition of ensuring mineral security and self-reliance.
In the budget session, the finance minister has reduced customs duty on rare earth metals and critical minerals. What impact will it have on NMDC’s exploration exercises and operations?
The cutback in customs duty on rare earth metals and critical minerals by the honourable finance minister presents a fitting opportunity to the mining companies of the country. This policy shift will bring down the cost of importing essential equipment and new age technology; enabling the industrial effort to accelerate exploration of critical minerals like lithium, cobalt, and nickel. Battery minerals are becoming increasingly essential for our transition to electric vehicles and other renewable energy solutions.
In our diversification roadmap, lithium, cobalt and nickel prominently feature in the list and so it is a very welcome decision for NMDC. It will encourage our exploration and collaboration initiatives while promoting investment in R&D and the expansion of our mineral portfolio. This intervention supports our ambition to become a key player in the global market for critical minerals and be one of the first mining companies in India to bring lithium home.
A catalyst in the changing mineral landscape, the new policy gives us a competitive edge. With the determination to leverage this opportunity, NMDC is gearing up to make a key contribution to the green growth of India’s mining sector.
In the new financial year, what are the initiatives, interests, and plans of NMDC?
We are poised to build up our market leadership in FY25 towards the goal of 100 million tonnes production capacity by 2030. Our primary focus will be on enhancing production and evacuation capacities and to this end, a capital expenditure of Rs2,500 crore has been earmarked for this financial year. NMDC will be investing in mine infrastructure and intelligent equipment to boost productivity and efficiency.
We are also keen on expanding our mineral and geographical footprint. The team is exploring opportunities in Australia, Africa, South East Asia and Latin America to mine strategic minerals of national interest―iron ore, coking coal, lithium and battery minerals.
NMDC has made a commitment to responsible mining. We have outlined key performance indicators to assess the progress and efficacy of our ESG initiatives. In FY25, we aim to weave sustainability into the fabric of our company’s overall business goals, decision making, risk management, strategic investment and future planning.