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BSE: 526371 Sector: Metals & Mining
NSE: NMDC ISIN Code: INE584A01023
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OPEN 124.50
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VOLUME 329035
52-Week high 152.50
52-Week low 102.80
P/E 13.38
Mkt Cap.(Rs cr) 38,742
Buy Price 122.45
Buy Qty 150.00
Sell Price 0.00
Sell Qty 0.00

NMDC Ltd. (NMDC) - Director Report

Company director report

for the year 2015-16

Dear Members

Your Directors are pleased to present the 58th Annual Report on the performance of yourCompany together with the Audit Report and Audited Accounts for the year ended 31stMarch 2016 and the Report thereon by the Comptroller and Auditor General of India.


During the year under review the Company has recorded turnover of Rs.6456 croresachieved Profit Before Tax (PBT) of Rs.4505 crores and achieved Profit after Tax (PAT) ofRs.3028 crores.

The major performance highlights are summarized as under:

• Achieved production of 285.74 MT and sales of 288.39 MT

• Turnover for the year under review was Rs.6456 crores compared to Rs.12356crores in the previous financial year 2014-15 recording a decrease of 48%.

• Profit before tax (PBT) was Rs.4505 crores compared to Rs.9768 crores in theprevious financial year 2014-15 recording a decrease of 54%.

• Profit after tax (PAT) was Rs.3028 crores compared to Rs.6422 crores in theprevious financial year 2014-15 recording a decrease of 53%.

• Net worth increased to Rs.30106 crores as on 31.03.2016 7% lower thanRs.32326 crores in the previous financial year 2014-15.

• The Company has declared Interim Dividends of Rs.11.00 per share for FY 2015-16which is the highest ever dividend paid by the Company.

• Capital expenditure of Rs.3679 crore has been incurred during the year underreview which is the highest since inception in any year.

• Incorporated two subsidiary companies - Jharkhand Kolhan Steel Ltd. andNMDC-SAIL Ltd.

• The Board of Directors has approved buyback of equity shares in its meetingdated 07.06.2016 for 800825526 equity shares from the shareholders of the Companythrough the tender offer route @ Rs.94/- per share aggregating Rs.7528 crores.


2.1 Production

Product Achievement Percentage of change
2014-15 2015-16
Iron Ore (lakh tonnes) 304.41 285.74 (-) 6.13%
Diamond (Carats) 35085 35558 1.35%
Sponge Iron (Tonnes) 28994 6614 (-) 77.19%


Particulars Physical (in lakh tonnes) Value (Rs. in crore)
Achievement % of change Achievement % of change
2014-15 2015-16 2014-15 2015-16
Domestic 280.49 277.13 (-)1.20% 10828.16 5975.13 (-)44.82%
Export through MMTC 24.67 11.26 (-)54.36% 1369.53 352.80 (-)74.24%
Total Sales 305.16 288.39 (-)5.50% 12197.69 6327.93 (-)48.12%

3.1 Other Sales

Products Achievement
2014-15 2015-16
a) Diamond
Sales (carats) 38789 36683
Value (Rs. in crore) 50.06 52.61
b) Sponge Iron
Sales (tonnes) 25191 8365
Value (Rs. in crore) 48.09 11.67
c) Wind Power
Sales (lakh units) 176 185
Value (Rs. in crore) 5.96 6.30


4.1 Operating Results

Parameter Achievement Percentage of change
2014-15 2015-16
Profit Before Tax (PBT) (Rs. in crore) 9768 4505 (-)54%
Profit After Tax (PAT) (Rs. in crore) 6422 3028 (-)53%
Net Worth (Rs. in crore) 32326 30106 (-)7%
Book value per share (Rs.) 81.54 75.93 (-)7%
Earnings per Share (Rs.) 16.20 7.64 (-)53%

4.2 Profit & Dividend

During the year under review your Company has earned profit before tax of Rs.4505crores on a turnover of Rs.6456 crores in comparison with previous year's achievement ofRs.9768 crores and Rs.12356 crores respectively.

The Company has declared first Interim Dividend for FY 2015-16 @ Rs.9.50 per shareinvolving an outgo of Rs.3766 crores. Second Interim Dividend for the financial year2015-16 was declared @ Rs.1.50 per share involving an outgo of Rs.595 crores.

The total interim dividend paid aggregates Rs.11.00 per share.

The total interim dividends for the current year is Rs.4361 crores. Share ofGovernment with equity stake of 80% is Rs.3489 crores. No final dividend has beenrecommended by the Board of Directors for the year under review.

Meltdown in the prices of commodities especially iron ore weakening of Chinese demandand low cost capacity addition of iron ore affected the profitability of the Companysubstantially during the year under review.


The Company proposed to transfer an amount of Rs.400 crores from net profit to GeneralReserve.



The Company has not accepted any deposits covered under Chapter-V of the Companies Act2013 during the year under review.


Necessary disclosure in respect of Internal Control Systems and their adequacy has beenmade in Annexure-C to the Independent Auditors' Report dated 27.05.2016 which forms partof the Annual Report.



Necessary details in this regard have been disclosed in the financial statements.


Disclosures on related party transactions forms part of the Notes to the Balance Sheetboth of Standalone and Consolidated.


The Audit Report for both Standalone and Consolidated Financial Statements for the FY2015-16 is unmodified and does not contain any qualification reservation or adverseremark.


The Secretarial Audit Report for the FY 2015-16 by M/s Hanumanta Raju & Co.Company Secretary in whole time practice does not contain any qualification reservationor adverse remark.

8.0 NEW PROJECTS & BUSINESS DIVERSIFICATIONS 8.1 Projects under construction 8.1.1Bailadila Deposit - 11/B

With a strategic vision to augment production the construction of Deposit 11B mine atan enhanced capacity of 7.0 Million tons of ROM per annum has been taken up. The estimatedcapital expenditure towards this is Rs.607 crores. Out of this Rs.320 crores is for Plantand Rs.188 crores is for mining machineries. The plant was commissioned on 22/08/2016.There after PG tests of 11-B project (7 MTPA Capacity) were completed in Nov.25 andproduction commenced.

8.1.2 Kumaraswamy Iron Ore Project

As an addition to present Donimalai Iron Ore Mine and augmenting production Capacitythe construction of Kumaraswamy Iron Ore Mine with a capacity of 7.0 MTPA is being takenup with an estimated capital outlay of Rs.898.55 crores. MECON was appointed as the EPCMconsultant. The entire project is being executed through six packages. Orders have beenplaced for all the packages and the major works have been completed. Integrated trial ofcrushing plant and downhill conveyor is in progress. Electrical substation charged.Service center facilities and water pipe line works are completed. Production is scheduledduring the FY 2016-17.

8.1.3 1.2 MTPA Pellet Plant at Donimalai

One of the main objectives of this project is to prolong the life of the Tailing Dam atDonimalai by using slimes for making pellets. M N Dastur & Co. was appointed as theEPCM consultant. Execution of the Project is divided into Six Packages. The estimatedcapital expenditure is Rs.572 crores. Major works completed. MRSS Package wascommissioned. Integrated Load Trails of Beneficiation Plant and Pellet Plant are inprogress. Production of Pellets is scheduled in FY 2016-17.

8.1.4 3.0 MTPA Integrated Steel Plant in Chhattisgarh

As you are aware your Company is setting up a 3.0 MTPA Integrated Steel Plant atNagarnar near Jagdalpur in Bastar District of Chhattisgarh where the Company is inpossession of about 2120 acres of land for the Steel Plant township (Construction colonyand Studio Apartments) and for other facilities.

Necessary statutory clearances including Environmental Clearance from Ministry ofEnvironment & Forests (MOEF) and the Government of Chhattisgarh have been obtained.Rail Transport Clearance was received and the Final Detailed Project Report of Railwaysiding is also approved by East Coast Railway Government of Chhattisgarh has sanctionedwater and power for construction as well as for operation of the plant. Regarding powerfor operation of the Steel Plant from Raipur through Chhattisgarh State Power TransmissionCompany Limited (CSPTCL) is progressing at site.

Engineering Consultancy and Project Monitoring Services contracts have been awarded toM/s. MECON Ltd.

For expeditious execution and commissioning of the Steel Plant the nine MajorTechnological packages in respect of various production units viz. Sinter Plant BlastFurnace Complex Raw Material Handling System

Coke Oven Plant By Product Plant Steel Melting Shop Thin Slab Caster & Hot StripMill Lime & Dolo Plant and Oxygen Plant have been awarded on turnkey basis to variousglobal companies from countries like Germany Italy Austria China France USA andseveral others. Major Indian Companies are also participating like L&T BHEL NCC BEC& BEEKAY. Most of the auxiliary packages have also been awarded. Installation of theplant is moving at fast pace. Already more than 75% of major civil work has been completedand structural as well as equipment erection are at various stages of completion.

All critical packages required for commissioning of plant are tendered out and most ofthem are already awarded. So far NMDC has invested Rs.9162 crores in the Steel Plant.

8.1.5 Ore Beneficiation and Slurry Pipeline Transportation system from Bailadila toVizag

The Slurry Pipeline Transportation System is intended for transportation of Pellet FeedConcentrate from Bailadila to Vizag via Jagdalpur along National/State Highways with aprovision of partial off-take at Nagarnar for making Pellets required for feeding toNMDC's proposed Steel Plant at Nagarnar. For first phase of implementation investmentproposal for construction of 2 MTPA Ore Processing Plant at Bacheli 15 MTPA SlurryPipeline system from Bacheli to Nagarnar and 2 MTPA Pellet Plant at Nagarnar was approvedby NMDC Board.

Memorandum of Understanding for implementation of the Project with Chhattisgarh StateGovernment was signed in May 2015 in presence of Prime Minister of India and ChiefMinister of Chhattisgarh.

Various permissions for crossing Water bodies Roads under PWD National Highways andother district roads for laying the Slurry Pipeline have been received. Environmentalclearance for setting up of the Pellet Plant has also been received. Activities forobtaining other clearances like MoEF clearance for Iron ore processing plant and SlurryPipeline system Consent for Establishment Clearance from Railways for crossing railwaytracks are in progress. Mecon is engaged as EPCM Consultant for this part of Project andbasic engineering is completed.

8.1.6 Panthal Magnesite Project

J &K Mineral Development Corporation Limited (J & KMDC) a subsidiary of NMDCLimited has decided to set up a 30000 TPA Dead Burnt Magnesia Plant at Panthal Jammu.

M/s Dastur & Co is the EPCM consultant for this Project. The project is planned tobe executed in four packages. Soil investigation work (Pkg-3) was completed. Execution ofBalance civil and structural works (Pkg-4) is in progress. Letter for award of work forPkg-1 for Material Handling Material processing and kilns (technology package) has beenplaced on consortium of FLSmidth and IFCO USA and contract agreement signed on23.06.2015. MoEFCC received a letter from H.K Governor of J&K and after examining thesame and in view of proximity of the project to Holy Shrine of Vaishno Devi MoEFCC haskept the Environment Clearance letter dated 03.05.2011 in abeyance. Accordingly atpresent all the works at site are on hold. NMDC has taken up the issue with Govt ofJ&K for resolving the issue at the earliest.

8.1.7 (a) Screening Plant III at Kirandul Complex

MoEF has accorded 1st stage clearance in Jan'2012. Environment clearances was receivedon 05.11.2013. 2nd stage forest clearance was received on 10.04.2015. Tree cuttingpermission for major portion of land has been received. Tree cutting permission for theremaining land is yet to be received.

To augment the production capacity of Kirandul Complex construction of 12.0 MTPAscreening plant with loading facilities is envisaged. This plant caters to both Dep.11-B& Dep.14 of Kirandul Complex. The estimated capital expenditure is Rs.951 crores. TATAConsulting Engineers (TCE) was appointed as the EPCM

consultant. The entire project has been planned to be executed in seven packages.

(b) Screening Plant II at Donimalai Complex:

To sustain production without interruption due to frequent breakdown of the existingscreening plant it is proposed to set-up a Screening Plant-II with Capital Outlay ofRs.400 Cr which can handle / treat ore from either Kumaraswamy mine or Donimalai mine orboth the mines. The installed capacity of this screening plant-II is to process Iron Oreup to 7 MTPA with a provision for handling additional 3 MTPA in future.

Applications have been submitted for obtaining statutory clearances which are underprocess.

M/s M.N. Dastur & Co Kolkata was appointed as EPCM Consultant.

8.1.8 Doubling of Railway Line between Kirandul and Jagdalpur

NMDC signed a MoU with Ministry of Railways on 21.12.2012 for doubling of rail linebetween Kirandul and Jagdalpur. The Project is required to augment evacuation capacity ofBailadila Sector by rail from the existing 28 MTPA to 40 MTPA of iron ore. The estimatedProject cost is Rs.1143.60 crores at 2013 price level and the expected date ofcommissioning is Jan'2019. An amount of Rs.300 crores has been deposited with East CoastRailways and the expenditure incurred as on 31.03.2016 is Rs.268.50 crores. For executionpurpose Railways has divided the 150 km length of doubling work into three Sectionsnamely Jagdalpur to Silakjori 45.50 km Kirandul to Gidam 52.23 km and Silakjori to Gidam52.73 km. Work is in progress in all three sections.

In section-I i.e. Jagdalpur to Silakjori Track work has been completed in the 17 kmstretch between Jagdalpur and Tokopal stations. After obtaining approval of Commissionerof Railway Safety (CRS) the said 17 km stretch will be opened for commercial operation.

8.1.9 Steel Plant at Bellary

In pursuance of the MoU signed between the Government of Karnataka and your Companyaction for setting up of a 3 MTPA Integrated Steel Plant at Bellary in the State ofKarnataka has been initiated by the Company. Acquisition of about 3000 acres of land forthe proposed steel plant through Karnataka Industrial Area

Development Board (KIADB) is under progress subsequent to publication of statutorypreliminary notification in the gazette of Karnataka in this respect.

Govt. of Karnataka had issued final notification under Section 28(4) of KIAD Act 1966declaring private land of about 2850 acres is acquired by state Govt. So far the companyhas deposited Rs.637.20 crores with KIADB being the cost of the private land plus servicecharges payable to KIADB in terms of the agreement executed between your Company andKIADB.

As a next step KIADB is presently disbursing the compensation to individual land ownersand thereafter hand over the possession of land to NMDC.

Government of Karnataka also accorded approval towards allotment of water and power foroperation of the proposed steel plant. M/s MECON has been engaged as consultant forpreparation of Techno Economic Feasibility Report (TEFR).

8.1.10 Rail Link between Dalli-Rajhara-Rowghat-Jagdalpur Railway Line Project

Laying of Railway line from 0 to 17 km from Dalli-Rajhara to Dondi towards Rowghat hasbeen completed. Work on the next phase i.e. from 18 to 42 km from Dondi to Kaveti is inprogress. Construction of Rail line from Dalli-Rajhara to Rowghat 95 km is beingco-ordinated by SAIL with Railways.

Rail link between Rowghat-Jagdalpur of 142 km length at an estimated cost of Rs.2000crores is proposed to be implemented by a JV company incorporated by the name "BastarRailway Pvt. Ltd." having equity participation of NMDC 43% IRCON 26% SAIL 21% andGovt. of Chhattisgarh 10%.

NMDC signed a MoU with IRCON SAIL and Govt. of Chhattisgarh on 09.05.2015. NMDCreleased pooled fund of Rs.6.50 crores to IRCON on 30.07.2015 for taking up both routesurvey and preparation of feasibility report. Detailed survey from Jagdalpur to Kondagaon(70 km) is completed and Kondagaon to Rowghat (72 km) is in progress.

NMDC has projected rail traffic of 4 MTPA by 2017 gradually increasing to maximum of10.5 MTPA by 2037. CMDC has projected rail traffic of 0.343 MTPA by 2017 graduallyincreasing to 4.90 MTPA by 2024.

Based on the above Traffic projections IRCON will prepare draft feasibility report andDPR. The Shareholders agreement (SHA) was signed on 20.01.2016.

8.2 NMDC Global

8.2.1 Australia

Legacy Iron Ore Perth Australia

Legacy Iron Ore Ltd is an ASX listed entity based in Perth Australia with a focus oniron ore gold and base metals. NMDC had participated in the Legacy Iron's rights issue inAugust 2014 and subscribed to its portion of equity with an investment of A$12.11 million.Post rights issue NMDC's equity in Legacy Iron had increased from 48.82% to 78.56%.

Legacy is presently carrying out exploration in its 19 exploration tenements in WesternAustralia in Iron Ore Gold and base metals. Legacy has 60% interest in Mt Bevan Iron OreProject which has a JORC compliant Indicated and Inferred resource of 1.17 billion tonnesmagnetite. Legacy's major gold focus lies in the South Laverton region and base metalsfocus lies in the Koongie Park region of Western Australia.

8.2.2 International Coal Ventures Pvt. Ltd. (ICVL)

ICVL post acquisition of Benga mine at Mozambique had tried various options of costreduction and minimize the cash loss in operation. The company had achieved significantreduction in cost compared to the pre acquisition era. However with the depressed cokingcoal prices the operations continued to make losses. The mining operations had stoppedfrom 31st December 2015. ICVL is undertaking a strategic review for future course ofaction.

8.2.3 Kopano NMDC Minerals (Pty) Limited

The Board Meeting and AGM of Kopano NMDC Minerals Ltd was held on 20th May 2016. Thecompany has proposed for tie ups with other companies in the present market scenario anddevelop coking coal and manganese projects both independently and jointly in South Africa.

8.2.4 Venture into Strategic Raw materials

Tungsten metal is of strategic importance due to its essential requirement in defenceand aerospace sector and currently India meets its entire requirement through imports.NMDC is in discussions with defence PSUs for forging a strategic alliance toacquire/invest-in prospective tungsten mineral assets abroad.

8.3 Leases for minerals

8.3.1 Iron Ore In respect of Bailadila-1 & 3

Your Company has filed Writ Petition before the Hon'ble High Court of Delhi againstallotment of PL of Deposit-1 in favor of Tata Steel & PL of Deposit-3 in favor ofESSAR Steels. The Writ Petitions being heard before the Hon'ble High Court of New Delhi. The PLs being pursued in Chhattisgarh

Your Company has applied 2 PL's in Dantewada District and is pursuing the PLs withChhattisgarh Government. In Jharkhand


A JV Company (NMDC 60% & JSMDC 40%) Jharkhand National Mineral DevelopmentCorporation Limited (JNMDC) has been incorporated on 06.08.2012 with its registeredoffice at Ranchi. DMG Government of Jharkhand has granted PL for iron ore & Manganesein Sasangada NE area in favor of JNMDC Limited for a period of 3 years. DetailedGeological mapping and topographical survey have been completed. Forest Clearanceapplication for conducting drilling and other exploration works is submitted online onMoEF &CC website. Lol has been issued for carrying out exploratory drilling in PLarea. Drilling will commence once Forest Permission is obtained.

MoU with DMG Jharkhand:

Your Company has signed MoU with Dept. of Mines & Geology (DMG) Jharkhand forexploration Iron ore and other minerals in the State of Jharkhand. Under the MoU signedyour Company is executing exploration for iron ore in Silpunji - Kantoria area in WestSinghbhum Dist. Geological mapping and topographical survey on 1:4000 scale has beencompleted. In Karnataka

Your Company is pursuing for ML for Ramandurg and Kumarswamy Deposit (contiguous to MLNo.1111). Ramandurg iron ore deposit is subjudice and pending in the Hon'ble Supreme Courtof India. The Hon'ble High Court of Karnataka vide order dated 02.01.2014 has disposed ofthe case of Kumarswamy iron ore deposit providing relief to NMDC. In Odisha

Your Company is pursuing for ML for Mankadnacha iron ore deposit.

8.3.2 Diamond In Andhra Pradesh

Your Company is pursuing forest clearance for exploration in 3 PLs falling in theForest area (Renewal application submitted) in Kalyandurg area Anantapur District.Recommendation of DFO CF PCCF and Special Chief Secretary to Govt. Environment ForestScience and Technology Department A.P. are also uploaded online. Now the proposals arepending with MOEF &CC New Delhi. Once the Forest Permission is granted explorationwill be commenced in 3 PL areas.

Your Company has also applied two more prospective blocks for Diamond and Iron Ore inAnantapur district on 25.09. 2012 and 23.10.2013 respectively. NMDC has requested StateGovt. to reserve these areas in favour of NMDC under 17A (2A) of MM (D&R) AmendmentAct 2015. In Madhya Pradesh

Your Company has applied 17 Nos. of areas for Diamond and Iron ore (5 ProspectiveBlocks in Panna Dist. 5 PL's in Tikamgarh Dist. 3 Large Prospective Blocks for Diamond3 Prospective Blocks for Iron Ore and 1 Prospective Block for various minerals likeDiamond Gold PGE Nickel etc.).

Panna PL and Prospective Blocks:

Exploration to start after signing of Tripartite MoU among NMDC MPSMC & GoMP inrest of the 5 Prospective Blocks namely Karmatiya Prospective Block LakshmipurProspective Block Pali prospective block Khirwa South and Khirwa West.

Tikamgarh PL's:

Based on RP works 5 PL applications namely Acharra Dargany Kalan Jalandarpur SunraiKhas & Birorakhet were submitted to Mining Officer Tikamgarh on 27.02.2013.

MoM New Delhi requested Secretary MRD GOMP Bhopal Controller General of IBM andDirector General of GSI for their comments for grant of Prospecting License in DarganyKalan and Jalandarpur in favour of NMDC under 4(2)(a) of Mineral (Evidence of MineralContent) Rules 2015 and Rule 7 of MCR 1960 & 3A to 3E of MCDR 1988. Your Companywill start detail exploration in these areas after grant of PL.

Large area Diamond Prospective Blocks:

Your company has applied three large area Prospective Blocks namely Damoh BlockChhattarpur Panna Block and Chhattarpur Panna Block 2 for diamond exploration. Explorationto start after signing of Tripartite MoU among NMDC MPSMC & GoMP in these areas.

Iron Ore Prospective Blocks:

Three Prospective Blocks were applied for Iron Ore i.e. Sidhi Block Bagrodha PF &Dulchipur RF and Dhaurra Village. GoMP has given permission to NMDC for prospecting worksin Dhaurra area after getting statutory clearances from forest and revenue departmentsunder Sub-section (1) of Section (4) of MM(D&R) Amendment Act 2015. Exploration tostart after signing of Tripartite MoU among NMDC MPSMC & GoMP in these areas.

Prospective block for various minerals:

One area was applied for various minerals (Diamond Gold PGE Nickel etc.) inJabalpur Katni Block (563 Sq. Km.). Exploration to start after signing of Tripartite MoUamong NMDC MPSMC & GoMP in this area.

8.3.3 Platinum Group of elements In Uttar Pradesh

Your Company is pursuing for Tsganan area Dangli and Dangli RF in Lalitpur District.

8.3.4 Coal

For Shahpur East & Shahpur West Coal Blocks:

• Hon'ble Supreme Court of India cancelled all the coal blocks by Govt. of Indiavides its verdict dated 24.09.2014 both the Coal Blocks and MoC GoI issued Ordinance on21.10.2014. Thus Shahpur East & Shahpur West Coal Blocks allotted to your Companywere de-allocated.

• NMDC had made revised claims towards expenditure incurred during developmentactivities to Ministry of Coal in respect of MOC's circular No. 110/1/2014/NA dated16.12.2015.

• As per the directives of Ministry of Coal GoI Coal Controller (HQ) Kolkatahas returned Original Bank Guarantees in respect of Shahpur West Coal Block and ShahpurEast Coal Block.

Coal Blocks allocation under Section-5 of the Coal Mines (Special Provisions) Act2015:

• As per the Section-5 of the Coal Mines (Special Provisions) Act 2015 YourCompany is trying to get Coking & Non Coking Coal Blocks for captive and commercialmining.


a) NMDC has ten subsidiaries and stake in seven Associate / JV Companies. The names ofthese Companies and percentage of NMDC stake in these companies are as follows:

* Under closure

b) The subsidiaries of NMDC are Board managed with the primary interest to manage suchCompanies in the best interest of the shareholders. The framework for Subsidiary /Associate / JV Companies are as under:

i) All investments in these Companies are approved by the Board of Directors. ii) TheCompany nominates its representatives on the Board of these Companies. iii) The minutes ofthe meeting of these Companies are placed before the Board. c) Incorporation of 2subsidiary companies

i) A 100% subsidiary company by the name Jharkhand Kolhan Steel Ltd. was incorporatedon 24.09.2015 to develop a steel plant in the State of Jharkhand through SPV route.

ii) NMDC-SAIL Ltd. with shareholding ratio of 51:49 between NMDC & SAIL wasincorporated on 23.05.2016 for the purpose of setting up a mining SPV with CMDC.


The Company has obtained Environmental clearance from Gol MOEFCC New Delhi for (i)Bailadila Iron Ore Project Deposit-13 at Kirandul Chhattisgarh for production capacityof 10 million tons per annum and (ii) Setting up of 2 MTPA Pellet Plant at Integrated Ironand Steel Plant complex at Nagarnar in Chhattisgarh. Expert Appraisal Committee MOEFCC inits meeting held on 28.01.2016 has also recommended the project "setting up of 4 MTPAIron Ore Beneficiation Plant at Bacheli along with Slurry Pipeline from Bacheli to

Nagarnar" for Environmental Clearance. The Environmental Public consultationmeetings held successfully for Bailadila Iron Ore Project Deposit-4 on 07.12.2015 atDantewada and on 10.03.2016 for proposed Screening Plant-II at Donimalai. The Company alsoobtained Terms of Reference from MOEFCC on 08.01.2016 for preparation of EIA report forobtaining Environmental clearance for capacity expansion of Bailadila Iron Ore ProjectDeposit-14/11C Kirandul from 12.0 to 20.0 MTPA. The Company is in process for obtainingEnvironmental clearances for other expansion projects.

The Company has obtained stage-1 forest clearances from MOEFCC for (i) diversion of33.00 Ha forest land for construction of Iron Ore Beneficiation plant at Bacheli on02.11.2015 and (ii) 4.01 Ha forest land for Transmission line of Pellet plant at Donimalaion 22.09.2015. The company is pursuing with State and Central Government for obtainingforest clearances for other proposals.

The company has participated in Chhattisgarh Hari Har during the year 2015 andcontributed Rs.10.97 crores to C.G.R.V.V.N. Ltd. Raipur for undertaking 100-km road sidetree plantation in state of Chhattisgarh. The company is undertaking all environmentalpollution control works such as de-silting of check dams / check bunds Tailing dams andconstruction of buttress walls at toe of waste dumps and Geo-coir matting on waste rockdumps for stabilization of dumps. The company is organizing environmental monitoringstudies at all the production projects by engaging MOEFCC recognized laboratories. Thestudies indicated that PM10 PM2.5 SO2 NOx and CO levels at the projects are well withinthe prescribed limits as per MOEFCC/CPCB standards.

10.1 Sustainable Development Performance

Under S.D. programme the Company has installed Sewage Treatment Plant with SBRtechnology at Bacheli at a cost of Rs.6.61 crores for treatment of township domestic wastewater. The Company has taken up GHG assessment for the year 2014-15 and disclosed GHGemissions in Carbon disclosure project for first time. The similar studies for the year2015-16 are also taken up for GHG assessment and disclosure in CDP.


Mine Safety - Activities

NMDC has its training centers in all its projects. They are equipped withinfrastructure as required under Mines Vocational Training Rules. These centers cater tothe needs of basic training refresher training and training for skilled workers and alsofor those injured on duty.

In each mining project of NMDC sufficient number of workmen inspectors are nominated /appointed for mining operations mechanical and electrical installations as per statutoryrequirements.

Mine Level Tripartite Safety Committee Meetings have been conducted in each of theoperating mines. This meeting is conducted once in a year at project level with seniorofficials Union Representatives and DGMS Officials in which Safety Performance and itsappraisal are made and the recommendations are implemented.

Corporate Level Tripartite Safety Committee Meetings are being held regularly once in ayear at Head Office. 26th Corporate Level Tripartite Safety Committee Meeting of BailadilaIron Ore Mines / Diamond Mining Project was conducted on 17.07.2015 and Donimalai Iron OreMine / Kumaraswamy Iron Ore Mine was conducted on 05.10.2015.

Safety Committees have been constituted in every operating mine and pit safety meetingsare held every month discussing the safety matters and corrective actions related to workatmosphere.

Man days lost per 1000 man days worked for the year 2014-15 is 0.14 and 0.34 for theyear 2015-16.


Integrated Management System (IMS) i.e. Quality Management System - ISO 9001:2008;Environmental Management System - ISO 14001:2004; Occupational Health & SafetyManagement System - OHSAS 18001:2007 & Social Accountability - SA 8000 CertificationStandards.

Consultancy work of integrating all the four systems i.e. Quality Management System(QMS - ISO 9001:2008); Environmental Management System (EMS - ISO 14001:2004; OccupationalHealth & Safety Management System (OHSMS - OHSAS 18001:2007; Social Accountability (SA8000) has been completed at all the projects viz. BIOM Bacheli Complex; BIOM KirandulComplex; Donimalai Iron Ore Mine; Diamond Mining Project and R&D Centre.

Certifying body M/s DNV Business Assurance India Private Limited Hyderabad wasappointed for BIOM Bacheli Complex; BIOM Kirandul Complex; DIOM and R&D Centre.

First Stage Audit completed at BIOM Bacheli Complex and BIOM Kirandul Complex.Certification Audit is scheduled in the month of May 2016 at both the Projects.

For DIOM and R&D Center Certification Audit has been completed and recommended forcertification of all the four standards.

Certifying body M/s RINA India Private Limited Mumbai was appointed for DiamondMining Project Panna. Certification Audit completed and recommended for certification.




The Company has in place a Board approved Corporate Social Responsibility.

The major focus of the CSR activities of the company are primarily in the followingareas:

i. Education promotion

ii. Health care Water & Sanitation

iii. Infrastructure development

iv. Integrated Development of Villages

v. Skill development for sustainable income generation

Report in terms of the Companies (Corporate


Your Directors gratefully acknowledge the support cooperation and guidance receivedfrom the Ministry of Steel Ministry of Mines and Ministry of Forests & Environmentand other Departments of Government of India and the State Governments of Andhra PradeshChhattisgarh Karnataka Madhya Pradesh Jharkhand and Telangana.

Your Directors acknowledge the support extended by the valued and esteemedinternational and domestic customers Shareholders stakeholders MMTC Chennai Port TrustVisakhapatnam Port Trust Railways and other Departments of the Central and StateGovernments. We believe that our long-term success is dependant on our domestic customerrelationship and responsiveness. We will do everything possible to provide our customersbetter timely and value added services.

The success of your Company is due to the commitment and dedicated efforts of themanagers and employees at all levels. Your Directors place on record their appreciationand also acknowledge the support and co-operation of All India NMDC Workers' Federationand their members for the smooth functioning of the Company's operations.

(Bharathi S. Sihag)
Chairman-cum-Managing Director
Place : New Delhi
Date : 12th August 2016