India’s NMDC to begin steel plant operations from July

India's largest iron ore producer state-controlled NMDC's 3mn t/yr Nagarnar iron and steel plant in Chhattisgarh will begin operations from July this year.

"We have started the coke oven heating process [in the steel plant], and we are expecting production from the coke oven maybe by the end of March or beginning of April. We will roll out finished product from July," NMDC's director of finance, Amitava Mukherjee, said this week.

The company also said public-sector consultancy Mecon will monitor the overall commissioning and operation of the plant.

The de-merger of the steel plant is also on schedule and the proposal has been filed with the Ministry of Corporate Affairs after obtaining clearance from the Securities and Exchange Board of India and stock exchanges, the company said, adding that the de-merger process could be complete before or by the middle of this year. NMDC decided to spin off its steel unit and list it as a separate entity last year.

The producer's October-December 2021 production rose by 11pc on the year to 10.6mn t, while sales rose by 6pc on the year to 9.85mn t during the same period.

NMDC will produce 44mn-45mn t of iron ore this fiscal year ending in March and aims to increase production to 47mn-50mn t in the next financial year on the back of a 2.5mn t upgrade of its Bacheli mine in Chhattisgarh, the company said. It has also applied for environmental clearances to raise capacity at its Kumaraswamy mine in south India's Karnataka state to 10mn t/yr, which could boost output to 50mn t or more by 2024.

NMDC raised its monthly domestic prices for February by 300 rupees/t ($4/t) to Rs5,200/t for lump with 65.5pc Fe content and by Rs200 to Rs4,260/t for 10mm fines with 64pc Fe on the back of increased demand for steel.

The daily Argus ICX 62pc iron ore index today was $149/dry metric tonne, down by 10pc from a year earlier, but 16pc higher on the month.

By Sumita Layek