NMDC to increase production, explore mining

The National Mineral Development Corporation (NMDC) aims to increase its production by 70 percent within the next 10 years and has received approval from the central government to explore mining in India.

The NMDC will work in association with the Geological Survey of India (GSI) and Navayuga Engineering Co Ltd (NECL).

"We had approached the government for exploration at free of charges. The NMDC has plans to start an extensive exploration process now," NMDC chairman and managing director Narendra Kothari said on the sidelines of a programme here Wednesday.

The NMDC has recently bought a sizeable stake in an Australian mineral exploration company and is expected to use it for both domestic and global operations.

India has 12 percent of the global reserve of coal, but only 18 percent of the Indian mainland has been explored so far.

"The per capita mineral consumption in India is the lowest among BRIC countries," Kothari said.

Stating that minerals are the backbone of the economy, Kothari highlighted the need for extensive development of infrastructure and research and development temperament and facilities.

Commenting about the target and the volume of business, Kothari said; "By 2019, we will be reaching 60 million tonnes and by 2025 we would touch 100 million tonnes."

The NMDC is also coming up with a steel plant in Bastar in Chhattisgarh by 2016 and is investing Rs.16,000 crores for the project.

As production increases on the domestic front, the state owned company is also planning to increase its exports from about 6 percent to 10 percent in the next two years.