NMDC lines up Rs 2,450-crore capex

NMDC Ltd, the public sector mining major, has lined up capex of Rs 2,450 crore for various mining projects. The proposed investments will take NMDC’s capacity to 50 million tonnes per annum (mtpa). The company also initiated a dialogue with a US-based company, to procure technology, to produce coke-equivalent in India from thermal coal. NMDC also said it is looking for a partner to promote a gold mine in Tanzania.

According to the company's annual report, to compensate the depleting reserve of its Donimalai iron ore mine and augmenting production capacity towards achieving the target of 50 mtpa, construction of the

Kumaraswamy mine with a capacity of seven mtpa was envisaged.

The Board has approved the revised capital outlay of Rs 898.55 crore for the project and MECON appointed as engineering, procurement and construction management (EPCM) consultant. The entire project will be implemented in six phases. Work orders are placed for all critical packages including crushing plant, downhill conveyor and electrics and substation. The project is expected to be completed by June 2012.

The company also stated that as part of its plan to enhance production, the construction of Bailadila Deposit 11B mine at an expanded capacity of seven million tonnes per annum has been taken up at a cost of Rs 607 crore.

“Naxal activities have seriously hindered the progress of the project work. The project is likely to commissioned by December 2011 and as on March 31, the progress is 31 per cent,” according to company's annual report.

The company also said to augment the production capacity of the Kirandul complex the construction of a 12 mtpa screening plant, with loading facilities is envisaged at an estimated capital expenditure of Rs 951 crore. Tata Consulting Engineers has been appointed as EPCM consultant. The entire project has been planned in seven phases. “The project is waiting for environmental and forest clearance,” said the company.

On the Panthal magnesite project, the company said a public hearing for environmental clearance was held in February and the ministry of environment and forest asked NMDC for a NOC from the National Board of Wild Life, with reference to the Tricutta wild life sanctuary, which is close to the mine area.

The project is planned in four phases and Dasturco is the EPCM consultant.

NMDC formed a JV company with J&K Minerals Ltd in 1989 to explore and exploit the Panthal mine to produce dead-burnt magnesite.