We are gearing up to meet the increasing demand for high-quality steel.
Amitava Mukherjee
Chairman-cum-Managing Director (Additional Charge), NMDC
How do you view the current market scenario of the Indian steel industry? How is the construction industry playing a key role in the growth of steel?
The Indian steel industry is currently experiencing a period of extraordinary growth, driven by the construction sector's insatiable appetite for steel. India’s position as the world’s second-largest steel producer, surpassing Japan in 2019, is a testament to its economic growth and industrial development. NMDC as the largest iron ore producer in the country is thrilled to be at the forefront of this growth story.
The construction sector remains a cornerstone of steel consumption in India, with the nation’s infrastructure development ambitions, the industry is expected to grow at a CAGR of 6% over the next few years. The sector already accounts for around 60-65% of total steel consumption in India. The government's focus on initiatives like Housing for All, Smart Cities Mission, and infrastructure development is further fuelling the construction sector's growth, and consequently, the expansion of the steel industry. With 40 million tons of new steel capacity anticipated by FY26, India’s steel production capabilities will further strengthen, meeting the increasing demand from various sectors.
At NMDC, we're witnessing a significant surge in demand for our iron ore, with production levels reaching an all-time high of 45 MT in FY24. This growth is a testament to the construction industry's hunger for high-quality steel, which in turn drives our iron ore production. As we look ahead, NMDC is committed to supporting the construction industry's growth by ensuring a steady supply of high-quality iron ore. The future of Indian steel looks bright, and we're proud of playing a pivotal role.
Can you elaborate on NMDC’s mining assets and the latest developments in mining?
NMDC’s mining assets are its state-of-the-art, scientific and sustainable mines. Our mines are a testament to our commitment to innovation, environmental stewardship, and responsible resource extraction. NMDC’s iron ore mines in Bailadila, Chhattisgarh and Donimalai, Karnataka are the backbone of India's steel security, fuelling the nation's growth and development whereas our Diamond Mining Project in Panna is the sole mechanized diamond mine in the country, illuminating the Indian diamond industry. In a significant milestone, we've ventured into international gold mining operations in Mt. Celia, adding a new mineral to our portfolio.
Our R&D Centre is the heartbeat of our innovation, driving technological advancements and sustainable practices that set new benchmarks for the industry. At NMDC, we are not just extracting minerals, we are harnessing the power of technology to create a sustainable, efficient, and connected mining ecosystem.
We are transforming our traditional mines into smart mines by harnessing the power of digitalization to optimize every aspect, where advanced technologies like ERP systems, business intelligence tools, and data analytics converge to create a symphony of efficiency. Our innovative initiatives like Drone Exploration, Vision Enhancement System, Mine Transport Surveillance, and Rapid Wagon Loading are redefining the mining landscape, making our processes more efficient, safer and better at managing the supply chain.
How are your products making an impact in the Indian construction sector?
The finest ore - NMDC’s Baila ore stands out as a rare and precious resource globally with its remarkable 66% Fe content. NMDC’s iron ore has played a pivotal role in shaping the very foundation of India's infrastructure. As a leading supplier of high-quality iron ore, we provide the critical raw material for steel production, supporting the nation’s infrastructure development. Our iron ore, the backbone of steel production, is fuelling the sector's unprecedented growth.
NMDC accounts for 1/5th of domestic iron ore production which is deemed to meet 1/5th of domestic demand of raw material for building smart cities, roads, railways and other infrastructure. By providing high-quality iron ore, NMDC is supporting India's infrastructure growth story, enabling the production of high-strength steel for construction applications, driving economic growth and employment generation. As the construction sector continues to soar, NMDC is committed to supplying the raw materials needed to build a stronger and more resilient India.
Our commitment to consistent quality and reliability is crucial in supporting India’s ongoing and future infrastructure initiatives. NMDC is proud to play a vital role in shaping the nation’s future by providing the essential raw materials for its construction industry.
What are the new opportunities emerging from the construction sector for steel and minerals?
NMDC is strategically expanding its operations in India to solidify its position as a leading mining powerhouse. We're actively exploring new mining opportunities, with a focus on strategic minerals like lithium, cobalt, and nickel, which are critical for India's growing renewable energy and EV sectors. We are focusing on the new mining assets particularly in Chhattisgarh with the development of NCL mines - Deposit 13 and Deposit 4 mines which is expected to add 28 MnT to our production capacity, enhancing our output and operational efficiency. We're also diversifying our portfolio by venturing into coal mining, with 8 MTPA coking coal block in Jharkhand set to commence operations by December 2025. Other projects, like laying a 15 MTPA slurry pipeline, expansion of KK line from 28 MTPA to 40 MTPA and developing stockyards, are underway to strengthen our supply chain.
The construction industry offers many opportunities for steel and minerals. As India invests heavily in infrastructure development the demand for high-quality steel is strong. Moreover, the growing trend towards sustainability is creating new avenues for innovative steel products, like green steel. Our expansion plans are designed to meet India's growing demand for steel and minerals, powering India's growth story while promoting responsible mining practices.
What is your vision on India as the 3rd largest construction market globally?
India’s rise to the third-largest construction market globally is a testament to the country’s unwavering growth trajectory driven by rapid urbanisation, infrastructure development and economic growth. This burgeoning market presents significant opportunities for the steel and minerals industry.
As a 45-MT strong company and leading supplier of iron ore in the country, NMDC is committed to fuelling India's construction sector by ramping up production capabilities and investing in advanced technologies. With our ambitious target of 100 MT by 2030, we are gearing up to meet the increasing demand for high-quality steel, while also prioritizing sustainability and responsible mining practices.
Recognising the importance of sustainability and innovation in the construction industry, NMDC is focused on aligning its strategies with emerging trends. We aim to be a key enabler of India’s construction growth, driving progress while ensuring our contributions align with national development goals and environmental stewardship.
What is your Mission 2025 for the company?
NMDC’s Mission 2025 focuses on ambitious growth and sustainability targets to further solidify our position as a Responsible Miner. A key objective of this mission is to achieve 50 million tonnes of iron ore production by FY25, fuelling India's infrastructure boom and supporting the nation's growth. This milestone is a crucial step towards reaching our ambitious target of 100 million tonnes by 2030. We're also focused on diversifying our portfolio with new mining assets, including coal and strategic minerals, to support the nation's self-reliant dreams.
