NMDC share price inched higher in early trade on Monday after the company commissioned a Rs 5,427 crore integrated iron ore processing, slurry pipeline and pellet-making project in Bastar, Chhattisgarh. The PSU stock rose as much as 1.12% to Rs 80.90 apiece on the BSE.
However, NMDC share prifce succumbed to selling pressure amid broader selloff in the Indian stock market today. The benchmark indices, Sensex and Nifty 50, were down more than 1.2% in early trade.
The newly commissioned project links NMDC's iron ore operations at Bacheli with its steel plant at Nagarnar. It includes an iron ore processing plant at Bacheli, a 15 million tonne per annum slurry pipeline and a 2 million tonne per annum pellet plant at Nagarnar.
2 MTPA Pellet Plant Commissioned
The 135-km pipeline will transport processed iron ore concentrate from Bacheli to Nagarnar, providing an alternative to road transportation. The pipeline passes through 61 villages in Bastar and Dantewada districts and is designed to provide an alternative evacuation route and reduce dependence on railways.
The facilities will enable processing of iron ore fines and slimes from the Bailadila mines into concentrate, which will subsequently be converted into pellets. The pellet plant uses Straight Grate Induration technology to produce pellets for steelmaking.
The commissioning strengthens the company's presence across the iron ore value chain, covering mining, beneficiation, slurry transportation and pellet production. It also adds a value-added product to the portfolio and allows greater utilisation of iron ore fines and slimes generated from Bailadila operations.
NMDC Ltd. Chairman and Managing Director, Amitava Mukherjee, commented, "Today is a day of immense pride for everyone at NMDC. This has not been an easy project to execute. It involved the processing facilities, the actual slurry pipeline, and the pellet plant. But today is a red-letter day—a day we have been waiting for a long time. This is the day when our collective dream is coming true."
The project is part of NMDC's broader expansion and diversification strategy as the company works towards increasing its iron ore production capacity to 100 million tonnes in the long term.
NMDC Stock Price Performance
NMDC stock price has been under pressure since a month, losing close to 9% during the period. The PSU stock has gained just over 2% in six month, and more than 5% in one year. However, the stock has delivered decent recturns over the long-term. NMDC shares have rallied 67% in three month, and hasve generated multibagger returns of 107% over the past five years.
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