NMDC plans up to ₹50K crore investment amid diversification push

Overseas acquisitions, rare earths and branded iron ore part of core strategy

State-run iron ore miner NMDC plans to invest ₹40,000 crore-50,000 crore over the next three years as it ramps up production capacity, expands into coal mining and pursues critical mineral opportunities in India and abroad.

 

“We have to spend this ₹40,000 crore, ₹50,000 crore within the next three years to reach our desired capacity level of 100 million tonne,” NMDC Chairman and Managing Director Amitava Mukherjee said at an analyst call.

 

The company expects capital expenditure of around ₹6,000 crore in financial year 2027 (FY27), rising to ₹9,000 crore-10,000 crore annually thereafter, as expansion projects move into peak execution.

 

 

NMDC, which produced more than 53 million tonnes of iron ore in FY26, has set a production target of 60 million tonnes for FY27, and remains confident of reaching 100 million tonnes by the end of the decade. 

The miner is pursuing overseas mineral acquisitions and expects to spend ₹2,000 crore-3,000 crore on acquiring assets abroad during the current financial year, Mukherjee said. 

“A few of them are in very advanced stages of acquisition,” he said, adding that details could not be disclosed because of confidentiality agreements.

 

As part of its diversification strategy, NMDC has operationalised the Tokisud coal block in Jharkhand and expects to begin coal extraction during the second quarter. The company is also targeting the opening of the Rohne coking coal block by the end of the third quarter, subject to pending approvals.

 

Within three years, the coal business could generate annual revenue of ₹5,000 crore-8,000 crore, according to Mukherjee.

 

The company has also established a dedicated subsidiary focused on rare earths and critical minerals and is actively scouting opportunities overseas. Management said it has entered into an agreement with Gujarat Mineral Development Corporation for a rare earth project and is evaluating additional assets globally.

 

In a separate initiative, NMDC's board has approved an investment of around ₹3,000 crore to develop a blending yard in Visakhapatnam that will enable the company to supply branded iron ore with consistent specifications. 

Mukherjee described the project as a potential “game changer” for the Indian iron ore market, saying no company in the country currently sells branded iron ore comparable to products offered by major global miners.

 

The company is also advancing infrastructure projects linked to its expansion plans. A 15 million tonne slurry pipeline from Bacheli to Nagarnar, along with associated facilities, is expected to be commissioned by the end of June, or in July after completion of pre-commissioning trials.

 

NMDC opened Bailadila Deposit-4 during FY26, its first new iron ore mine in about 50 years, and expects commercial mining to commence during the second quarter. It is also targeting the opening of Deposit-13 during the current financial year.