NMDC To Revise Down Production Target Due To Slowdown

Hyderabad: Bogged down by macroeconomic situation, state-run miner NMDC is in the process of revising its ambitious target, 'Vision 2025', which envisages the mining capacity to be increased to 75 million tonnes per annum (MTPA) by 2018-19 and 100 MTPA by FY22. According to the latest Annual Report (2015-16), NMDC may also start production from its Kumaraswamy Iron Ore Mine in Karnataka from the current fiscal year. "Since the formulation of SMP (Strategic Management Plan), the business environment for commodities/iron ore has witnessed severe downturn, necessitating a relook at the ambitious growth agenda. The prices of steel products and iron ore have come down significantly in the last one year. The subdued market conditions are likely to continue in the foreseeable future for both the steel and the iron ore industry globally, with supplies exceeding demand. Accordingly, the company's 'Vision 2025' is under review to align the growth plan in line with global and Indian iron ore market scenario, the miner said in the report. NMDC achieved production of 28.6 million tonnes of iron ore and sales of 29 MT last year. Turnover for the year under review was Rs 6,456 crore compared to Rs 12,356 crore in the previous financial year, recording a decrease of 48 per cent. Similarly, profit after tax (PAT) was Rs 3,028 crore as against Rs 6,422 crore in the previous financial year 2014-15 recording a decrease of 53 per cent. NMDC also said it took up the construction of Kumaraswamy Iron Ore Mine with a capacity of 7 MTPA with an estimated capital outlay of Rs 898.55 crore. MECON was appointed as the EPCM (Engineering, Procurement, and Construction and Management) consultant. "The entire project is being executed through 6 packages. Orders have been placed for all the packages and major works have been completed. Integrated trial of crushing plant and downhill conveyor is in progress. Electrical substation charged. Service center facilities and water pipe line works are completed. Production is scheduled during FY17," it said. It also said with a strategic vision to augment production, the construction of Bailadila Deposit - 11/B Mine at an enhanced capacity of 7 million tonnes of ROM ( Run of Mine) per annum has been taken up..(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

NMDC To Revise Down Production Target Due To Slowdown

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