Nmdc Profit Rises To Rs 165 Crore

National Mineral Development Corporation's (NMDC) net profit for the year ended March 2000 has gone up to Rs 164.71 crore (from Rs 140.40 crore in the previous year) on sales of Rs 788 crore (Rs 730.85 crore). The return on networth works out to about 20 per cent.

After the steady growth till 1997-98 where the company made a net profit of Rs 175.01 crore, there was a dip due to slowdown in the steel sector. The performance for the year ended March 2000 is thus not only a recovery but is the company's second highest bottomline figure.

Iron ore mining, which contributes over 90 per cent of the company's income, has increased to 14 million tonne (11.65 million tonne) and diamond mining to 40,075 carats (34,133 carats). NMDC also mines limestone used in steel industry but that constitutes a small part of the turnover. While diamond mining was the highest during the year, highest iron ore mining was recorded in 1997-98 at 14.7 million tonne.

 

NMDC, which has been seeking permission of Ministry of Commerce to be allowed to export directly, has been granted permission in late December to export Doni lump and Doni fines to markets other than Japan and South Korea. Following this, NMDC has made direct exports of about 1.3 lakh tonnes during the last fiscal.

NMDC chairman and managing director P R Tripathi said direct exports are envisaged for brand building and better realisations.

During the year, NMDC could tide over some problems affecting the progress of the projects under construction. The work on Bailadila (deposits 10 &11A), which has been stopped for forest clearance, has been resumed after the Supreme Court accorded permission for tree felling, Tripathi said.

NMDC has derived an application for kimberlite wastes (released in diamond mining) in removing fluoride from drinking water.

In a demonstration plant in Nalgonda district 15 kg of kimberlite waste was used to remove fluoride from 200 litre of water.About the future course, Tripathi said NMDC is interested in high value mining such as gold, diamonds and titanium.

Andhra Pradesh, he said, holds good opportunities for diamond and titanium mining.

NMDC's engineers and geoligists also visited potential areas in Namibia, Angola and Tanzania. A team has also visited Algeria for gold, tungsten and rock phosphate mining. These visits are being followed up by discussions at different levels.