Indian state-controlled iron ore producer NMDC expects to complete two new mines with a 14mn t/yr peak production capacity by the end of the current 2014-15 fiscal year ending 31 March.
Engineering and construction work at the Bailadila Deposit 11B mine in central India's Chhattisgarh state and the Kumaraswamy mine in the southern state of Karnataka are progressing smoothly, NMDC said. Each mine has a 7mn t/yr peak capacity.
Construction at Bailadila has been hampered by militant attacks that destroyed machinery at the project site in March and May this year. The Maoist militants often attack mining and industrial installations in forested areas, which it considers are infringing the rights of indigenous tribes that depend on the forest for food and firewood.
NMDC has invested $250mn in developing both mines, part of its strategy to increase its annual production to 50mn t/yr during the next few years. The company produced 30.04mn t of iron ore in 2013-14, up by 10.45pc year from a year earlier.
Demand for NMDC's iron ore has increased from domestic steel mills, as mining in Karnataka, Orissa, Goa and Jharkhand states remain restricted because of regulatory issues.
The company is also upgrading its pelletisation capacity, partly to meet domestic demand and also to feed its 3mn t/yr steel plant being built in Chhattisgarh. NMDC plans to start a 1.2mn t/yr pellet plant in southern India by 31 March 2015. It is also planning to start on a 2mn t/yr beneficiation plant and a 2mn t/yr pellet plant in central India.
pb/rjd
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