NMDC to invest $1 billion on infrastructure
The PSU is also setting up screening plants in Karnataka and Chhattisgarh
National Mineral Development Corporation Limited (NMDC Ltd) is in the process of investing about $1 billion on infrastructure in the next three years to help ramp up iron ore production.
Director (finance) of the company Amitava Mukherjee said the cost of the upcoming three-million tonne capacity steel plant would go up to Rs 19,000 crore against the estimated over Rs 15,500 at the time of conception. The iron ore miner has already invested nearly Rs 14,500 crore on the plant.
The production of steel-making would go from the current capacity of 146 million tonnes per annum to 300 MTPA. "About $200 millions have already been invested in different projects. We expect all this (investment) to be completed by 2022 to 2023," Mukherjee said.
At Bailadilla in Chhattisgarh, the company is creating a rapid wagon-loading system for evacuation and setting up a new slurry pipeline. It is also in the process of doubling of railwayline between Kirundul and Kothavalasa (KK line), he said.
The PSU is also setting up screening plants in Karnataka and Chhattisgarh. On the upcoming steel plant in Chhattisgarh, Mukherjee said the company was investing Rs 2,000 crore and its commissioning was expected before the end of this fiscal.
Mecon (project consultant) is doing the revised estimation. Ballpark figure of the total investment on the plant should be between Rs 18,000 crore and Rs 19,000 crore.
The miner suspended iron ore mining from its Donimalai mine following the Karnataka governments decision to impose 80% premium on the ore sales from that mine.