NMDC Scouts Mining Assets Across Four Continents To Diversify Beyond Iron Ore

NMDC is scouting mining assets, including critical minerals, across four continents as it prepares to meet the future raw-material needs of industries such as automotive, renewable energy, electronics and steel, according to industry sources.

The state-owned iron ore giant caters to one-fourth of India’s iron ore demand. It has set a target of earning at least 20% of its revenue from minerals other than iron ore, the key raw material used in steelmaking.

Minerals under consideration

Industry sources said NMDC is exploring lithium, copper, cobalt and rare earth blocks in Chile, Australia, Africa, Brazil and parts of Asia. Chile is in South America, while the company is also examining opportunities in Australia, according to the sources.

The company is separately scouting for limestone mines, dolomite, coking coal and tungsten blocks in the UAE, Oman, Bhutan and Australia, the sources said. The search therefore covers both critical minerals needed by newer industries and raw materials linked to steel and other industrial activity.

NMDC’s diversification plan is intended to widen the mineral supplies it can provide to industries in India that are on a growth trajectory, sources said. These sectors include steel, automobiles, electronics, renewable energy, aerospace and defence, railways and metros.

When asked for a comment, NMDC said, “Right now, we are a 99.9% iron ore company. We aim to help the growing industries in the country with the maximum of their mineral needs”.

Push beyond iron ore

In an earlier interview with PTI, NMDC Chairman Amitava Mukherjee confirmed that the company was working on strategies to diversify into the sale of other minerals. Mukherjee said NMDC aims to become India’s largest mineral mining company and earn at least 20% of its revenue from minerals other than iron ore.

The expansion aligns with government initiatives focused on securing long-term supplies of raw materials and reducing import dependence across economic sectors. The plan would extend NMDC’s role beyond its current concentration in iron ore and connect it with a wider set of industrial supply requirements.

Raw-material security is particularly important for steelmakers. Raw materials account for around 65-70% of steelmaking costs, according to the Ministry of Steel’s draft Steel Policy Vision 2047.

The draft policy proposes reducing import dependence through domestic mining, expansion of washeries, asset acquisition, long-term supply arrangements and artificial intelligence-based optimisation of coal blends.

Demand expected to widen

The policy document said India’s efforts to increase manufacturing’s share of the economy are supported by initiatives including Make in India, the Production Linked Incentive Scheme, semiconductor manufacturing, defence indigenisation and industrial corridors.

It expects these efforts to expand steel consumption in automotive, engineering goods, capital goods, machinery, shipbuilding, renewable energy equipment and defence production. That expected growth is part of the wider industrial demand behind NMDC’s search for additional mineral assets.

NMDC’s diversification strategy is aimed at building supplies for these sectors while reducing its dependence on iron ore as its principal source of revenue.

Source: The Hindu