NMDC to spend Rs 150-200 cr on Capex for diamond production

Diamond production had gone up 66% in FY12 with 18,043 carats as against 10,866 carats in previous year

NMDC is planning to ramp up its diamond operations through additional capex.

The company will spend Rs 150-200 crore on capex plans over the next year-and-a-half, according to chairman and managing director, C S Verma.

Diamond production had gone up 66% in FY12 with 18,043 carats as against 10,866 carats in the previous year, according to the company’s last annual report.

This is the highest in seven years. Production figures were at 43878 carats in 2005-06.

Diamond sales accounted for less than Rs.10 crore in FY12.

NMDC operates the only mechanized Diamond Mine in Asia at Panna, Madhya Pradesh, with a capacity to produce one lakh carats per annum.

However, the company is better known as India's single largest iron ore producer. 

It presently produces about 30 million tonnes of iron ore from 3 fully mechanized mines two in the state of Chhattisgarh and one in Karnataka, according to its website.

NMDC is also involved in exploration of minerals including copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, tin, tungsten and graphite.

The company has lined up Rs.30,000 crore worth of capex for the twelfth five year plan.

NMDC has also acquired 50% stake in Legacy Iron Ore, Australia and is also in advanced stage of exploration for gold prospects in Tanzania, according to a statement on its website.

Verma was speaking on the sidelines of an event at the National Stock Exchange where NMDC was made a part of the Nifty index.