NMDC plans to start mining in Australia

NMDC, the largest iron ore producer under the administrative control of the Indian Ministry of Steel, is acquiring an additional 30 percent stake in the Australian firm Heritage of Iron Ore to begin mining in that country within the next two years.

With an additional 30 percent stake in the Australian company, NMDC has acquired 48.8 percent of the shares it began to acquire in 2011, NMDC chairman and managing director Narendra Kothari told reporters. “We have our experience as well as our Australian partners. By joining forces, we will use our experience in exploration,” he added.

NMDC has set a target to increase production by at least 10 percent to 32-33 million tonnes in 2014-15, up from 30 million tonnes of iron ore in fiscal 2013-14. “In the next two years, we intend to produce 36-37 million tons, but our goal is to produce 50 million tons in 2018-19 and even reach 100 million tons by 2024-25,” said Kothari.

NMDC produced 9 million tonnes in Karnataka state in 2013-14 and is aiming to increase production to 10.5 million tonnes or more in Indian mines this year, Kothari said. He noted that regardless of the fall in iron ore prices in the international market, NMDC will not reduce its prices in the domestic market.