NMDC plans to buy mines in India, abroad

State-run iron ore miner NMDC today said it plans to expand its exploration activities by acquiring more prospecting licences and mining leases in India and abroad.

"We plan to acquire more prospecting licences and mining leases in India and abroad, including non-ferrous minerals," NMDC Chairman and Managing Director Rana Som told reporters here.

NMDC expects to commission three iron ore mines in Jharkhand, Chhattisgarh and Karnataka in the next three years, Som said.

"We are also in talks to acquire overseas mines for rock phosphate and potash," he added.

The company believes diversification and expansion of its mining activities and products blends well with its strategy of becoming an integrated producer. This will also enable it to balance cyclical change in mineral prices and economic change as well as grow its business.

As a result of exploration and development activities, the company has applied and been granted mining leases for diamonds, limestone and magnesite.

NMDC has also acquired two coal blocks and is looking to diversify into other areas including minerals used in fertilisers, he said.

The company's costs and production are competitive with those of the leading iron ore producers in the world, he said.

The company, however, seeks to further lower its costs and improve efficiency by having all mines fully mechanised and by increasing its reserves and production through further exploration and development realising economies of scale, he added.