Mineral Development Corporation (NMDC)
A number of proactive measures are being taken to promote the steel industry. These include increasing the production of iron ore as it is a crucial resource and plays a vital role in the production of steel. The National Steel Policy (NSP), 2017, envisages a total crude steel capacity of 300 million tonnes per annum (mtpa) and a total crude steel demand/production of 255 mtpa by 2030. The policy also seeks to increase per capita steel consumption from the existing level of around 80 kg to 150 kg by 2030. Additionally, production of iron ore, which is required to support the steel sector, is envisioned to reach 437 mt by 2030 and the share of blast furnace-basic oxygen furnace (BF-BOF) to 60-65 per cent by 2030. At a recent Indian Infrastructure conference, B. Sahoo, executive director, production, National Mineral Development Corporation (NMDC), discussed the iron ore production scenario, export-import trends and future plans. Excerpts…
Performance highlights
During calendar year 2023, India’s iron ore production increased by about 14 per cent to an all-time high of 282 mt as compared to 248 mt in calendar year 2022. This can be attributed to the active involvement of key players in the industry. For instance, merchant miners such as NMDC and the Odisha Mining Corporation (OMC), along with captive miners such as Tata Steel, JSW and Steel Authority of India Limited (SAIL), have played a pivotal role in contributing to this growth. Together, these major players accounted for about 66 per cent of the total iron ore production.
NMDC is India’s largest producer of iron ore, accounting for about 18 per cent of the market share. It produced 41.22 mt of iron ore in 2022-23. Meanwhile, Tata Steel and SAIL produced 36.3 mt and 34 mt of iron ore respectively.
India’s iron ore mining sector operates within a regulatory framework and the cumulative environmental clearance (EC) for iron ore mines stands at about 376 mtpa, with the sector utilising about 68 per cent of this EC capacity in 2022-23.
While domestic production reached new heights, India’s iron ore exports experienced a notable decline in 2022. After reaching a peak of 46.4 mt in 2021, exports plummeted to 15.2 mt in 2022. This decline can be attributed to various factors, including subdued demand from the Chinese market and the imposition of export duties on iron ore, steel and pellets from April to November 2022. These factors had impacted the international trade dynamics of the Indian iron ore industry. In contrast, the country’s iron ore imports remained relatively modest in recent years, with quantities staying below 2 mt. India continued to be a net exporter of iron ore in 2022-23 as the total exports stood at 14.96 mt against the import volume of 1.33 mt. Further, total exports are expected to increase to 18-19 mt and imports to about 6 mt in 2023-24.
Future plans
India’s iron ore production is leading to an increase in crude steel output, which is slated to rise to 135-140 mt in 2023-24. Domestic iron ore production will be instrumental in achieving the NSP’s targets.
NMDC plans to deploy new equipment and introduce digital solutions in the Indian mining sector. For the year 2023-24, the company has set an ambitious iron ore production target of 49 mt, with subsequent targets of 67 mt for 2025-26 and an aspiration of reaching 100 mt by 2029-30. The company’s strategic roadmap includes expanding its capacity, with additions of 15.4 mt from Kirandul, 10.5 mt from Bacheli and 5.22 mt from Donimalai by the year 2029-30. Additionally, the company plans to operationalise two greenfield mines, Deposits 13 and 4, through a joint venture with the Chhattisgarh Mineral Development Corporation.
In alignment with the NSP’s targets, players in the iron ore industry have set forth ambitious plans to significantly augment their capacity and boost production. For instance, OMC aims to achieve an output of 34 mt in 2023-24 and 76.9 mt in 2026-27. Also, plans are under way to scale up production to 30 mt from the current levels of 6 mt in its Guali mine. Further, JSW aims to achieve 50 mtpa of crude steel capacity by 2029-30 and to increase the production of the Nuagaon mine to 20 mtpa. Tata Steel has set a target to double its crude steel capacity in the country to 40 mtpa by 2029-30 and is planning to acquire new iron mines to maintain self-reliance in iron ore.