At NMDC, technological innovation is the cornerstone of our commitment to sustainable and responsible mining.
P. Jaya Prakash
General Manager (C.C.), NMDC
How was your overall experience at IMME 2024? Could you share your thoughts on the exhibition in terms of participation, networking opportunities, and visitor engagement?
Participating in the 17th International Mining and Machinery Exhibition (IMME) 2024 in Kolkata was an enriching experience for us. As one of India's focused conferences & expo on mining & mining equipment, IMME served as a pivotal platform for mining industry stakeholders to converge and discuss advancements in mining technology and sustainable practices with the broader industry community in meaningful dialogue.
A significant focus of the event was on sustainable mining practices, aligning with India's ambitious target of achieving 300 million tonnes of steel production capacity by 2030. Discussions centered on how the industry can meet this demand responsibly, emphasizing environmental stewardship and social responsibility.
NMDC being a torchbearer of responsible mining, we proudly showcased our sustainability initiatives and innovative approaches at IMME 2024. Our commitment to environmental conservation, community engagement, and technological advancement was well-received by attendees, reinforcing our position as a leader in the iron-ore industry.
The exhibition also provided ample networking opportunities, allowing us to engage with potential clients, partners, suppliers and industry experts. These interactions have opened avenues for future collaborations and have enriched our understanding of emerging trends and market demand.
Which products or solutions did you highlight at the exhibition? What feedback did you receive from potential clients or partners regarding your showcased offerings?
At IMME 2024, NMDC showcased our high graded iron ore products, including high-grade lumps, fines, and pellets. These offerings are integral to steel manufacturing, providing essential raw materials for the rapidly growing industry in India.
Our vision to achieve a production capacity of 100 million tonnes by 2030, underpinned by sustainable and responsible mining practices, garnered significant appreciation from the industry. Stakeholders recognized that NMDC's growth would catalyze expansion across the mining ecosystem, benefiting sectors such as equipment manufacturing, logistics, and environmental services. Also, NMDC received a lot of appreciation for creation of thousands of potential employment opportunities furthering socio-economic growth and benefitting local communities, as we target 100 million tonnes. This aligns with India's national objective of reaching 300 million tonnes of steel production capacity by 2030, positioning NMDC as a pivotal contributor to this goal.
Engagement with potential clients and partners highlighted high quality of our products being customer centric and our commitment to sustainability. Our efforts to integrate sustainable practices into our operations were particularly commended, reinforcing NMDC's reputation as a leader in responsible mining.
What are the latest technological innovations in mining that your company is focusing on?
At NMDC, technological innovation is the cornerstone of our commitment to sustainable and responsible mining. A flagship project within our innovation roadmap is the construction of a 135-km slurry pipeline. This environment-friendly, 15 MTPA pipeline extends from Bailadila to Nagarnar and beyond to Visakhapatnam, representing an emission free approach to material transport. By reducing reliance on carbon-intensive transportation methods, this slurry pipeline significantly lowers emissions while optimizing the efficiency of our operations.
In parallel with this development, NMDC is enhancing its processing capabilities with the upcoming Screening Plant III at Kirandul and a similar facility at Donimalai. These screening plants are crucial in maintaining the quality standards that NMDC is renowned for, especially as we ramp up production. With advanced technology, these plants enable us to handle increased output efficiently while meeting the market’s demand for high-grade iron ore.
Further strengthening our position in the value chain, NMDC is developing a 4 MTPA beneficiation plant in Bacheli, along with a 2 MTPA pellet plant at Nagarnar, with future expansion plans to raise its capacity to 6 MTPA, bringing sustainability in the production itself.
Our Research & Development (R&D) Centre, with an investment over ₹200 crore in last five years, further reinforces this strategy. Focused on mineral beneficiation and sustainable processing techniques, the R&D Centre drives advancements. This commitment is also evident in the use of Continuous Ambient Air Quality Monitoring Systems (CAAQMS) across our key projects to ensure a safe environment for surrounding communities.
NMDC’s innovative projects and technological enhancements underscore our leadership in responsible mining, aligning with India’s goal of mineral self-sufficiency while setting new standards and ensuring resource efficiency in the mining industry.
How do you view the market demand for mining equipment and components in India?
The mining equipment market in India is poised for significant growth, driven by the country's expanding industrial development. According to Grand View Research, the Indian mining equipment market is projected to reach a revenue of USD 8,500 million by 2030, growing at a compound annual growth rate (CAGR) of 6.4% from 2023 to 2030.
This upward trajectory is closely linked to India's ambitious infrastructure projects and the government's focus on increasing mineral production. The mining sector experienced a 7.5% growth in FY24, with iron ore production rising by 7.4% to 277 million metric tonnes, reflecting robust demand in steel and cement industries.
The demand in industrial activities necessitates advanced equipment and components to enhance efficiency and meet production targets. The adoption of technologies such as automation, real-time data analytics, and energy-efficient machinery is becoming increasingly prevalent. This trend is further supported by the government's initiatives to promote sustainable mining practices and reduce environmental impact.
As NMDC aims to achieve a production capacity of 100 million tonnes by 2030, the demand for state-of-the-art mining equipment and components is expected to rise substantially. Investing in modern machinery will not only boost operational efficiency but also align with our motto of Responsible Mining.
Sustainability and ESG (Environmental, Social, and Governance) are gaining traction in the mining industry. How is your company adapting to the increasing emphasis on sustainable mining practices and ESG requirements?
At NMDC, sustainability and ESG (Environmental, Social, and Governance) principles are integral to our operations, shaping our commitment to responsible mining and community impact
Our environmental initiatives emphasize the reduction of resource consumption and waste through adoption of advanced technologies. For instance, our dry processing techniques at several mine sites have significantly reduced water usage in ore refinement, a critical advancement in water conservation.
In terms of renewable energy, NMDC has made substantial investments to integrate wind and solar power into our energy mix. Our wind power capacity stands at 10.5 MW in Chitradurga, Karnataka, complemented by a 395 KW solar installation in Chhattisgarh and additional solar capacity at Donimalai and our Hyderabad headquarters. These investments are a testament to our dedication to renewable energy, supporting India’s transition to a low-carbon economy and aligning with the country's goals for net zero.
NMDC’s biodiversity and land management programs further demonstrate our commitment to environmental conservation. In Chhattisgarh, we collaborate with the State Forest Department to restore local ecosystems, which includes sapling distribution in the Dantewada district and desilting water bodies in the Donimalai complex.
In addition to our sustainability efforts, NMDC’s Corporate Social Responsibility (CSR) initiatives reflect our dedication to uplifting communities and contributing to social progress. Our flagship programs, such as the Shiksha Sahayog Yojana and Balika Shiksha Yojana, provide scholarships and educational support to thousands of tribal children, empowering them with access to quality education and skill development opportunities. Moreover, NMDC invests in healthcare infrastructure, including mobile medical units and hospital facilities in remote regions, to ensure essential health services reach the remotest regions of the nation. Through initiatives like the 'Education City' project and the 'Hospital on Wheels' program, we continue to positively impact lives, fostering inclusive development and addressing critical social needs in areas surrounding our mining operations.
Governance at NMDC underscores our commitment to ethical practices, transparency, and stakeholder engagement. NMDC has implemented robust vigilance practices that strengthen our commitment to transparency and accountability. Our governance model includes regular training and awareness programs aimed at fostering a culture of ethical conduct across the organization. Through initiatives such as the Employee Training Portal and Vigilance Complaint Portal, we empower employees to engage actively in compliance and integrity, ensuring a well-informed workforce that upholds the highest standards of corporate responsibility.
Through these strategic initiatives, NMDC exemplifies how sustainable mining can meet industry demands while safeguarding the environment and supporting community development.
In terms of challenges, what operational or market-related issues do you foresee in the mining? How is your company planning to address these challenges?
At NMDC, we recognize several operational and market-related challenges that impact our growth trajectory and the mining industry at large. One significant challenge is the government's auction route for new mines. While this system has intensified competition, making it difficult for merchant mining companies like NMDC to secure new mining leases, the high auction bids for iron ore often exceed the intrinsic value
of the mineral. This situation raises concerns about the long-term sustainability of such practices. Furthermore, the shift from allocation to auctions has left the country's mineral resources with an uncertain future and increased dependence on imports, undermining national mineral security, impacting the expansion of our business
as well.
Furthermore, the high tax burden in India’s mining sector, particularly on royalties and export duties, places Indian miners at a competitive disadvantage compared to countries like Australia and Brazil. India’s effective tax rate on mining can reach around 50%, whereas it is much lower in Australia, at approximately 39%, and in Europe, where miners face even more favourable terms. This discrepancy in taxation impacts profitability and limits our capacity to reinvest in growth and technology.
Moreover, the auction regime has created a non-level playing field between public and private sectors, further complicating the competitive landscape for NMDC. To address these challenges, we leverage our strong position as a government-owned enterprise and India’s largest iron ore producer. Our established network and operational scale provide us with a competitive edge, allowing us to efficiently manage resources and maximize productivity and profitability.
We believe that a unified taxation policy implementing "one product, one tax" across the country could create a more level playing field, fostering growth and stability in the sector. Such reforms, alongside NMDC’s adaptability and government backing, position us to navigate these challenges effectively, ensuring sustainable operations and contributing to India’s mineral security.
Looking ahead, what are your company’s goals for the next 2-3 years in the Indian mining market?
In FY24, NMDC made history by becoming the first iron ore mining company in India to achieve a production & sales milestone of 45 million tonnes, a testament to our operational excellence and commitment to meeting the country’s growing domestic steel industry. Building on this achievement, we are now focused on reaching a production of 50 million tonnes by FY25. This target represents a crucial step in our strategic roadmap toward achieving our ultimate vision of 100 million tonnes of production capacity by 2030.
Our expansion plans align with the National Steel Policy 2017, which outlines India’s goal of producing 300 million tonnes of steel production capacity by 2030. To meet this ambitious target, the country will require approximately 450 million tonnes of iron ore annually, to which NMDC will play an essential role of producing 1/4th of country’s iron ore production and ensuring mineral security.
With each milestone, we are reinforcing our commitment to being a key player in India’s industrial growth, aligning our production capabilities with the nation’s strategic goals while adhering to responsible and sustainable mining practices.
