NMDC Expects 14K cr. from Nagarnar plant disinvestment

17 July 2017

NMDC Ltd is expecting alteast or more than Rs 14,000 crore from proposed disinvestment in its upcoming 3 MTPA Nagarnar Steel plant in Bastar region of Chhattisgarh, official sources informed.

NMDC in April this year had also decided to get an asset valuation of its upcoming 3 MTPA Steel Plant at Nagarnar in Bastar region of Chhattisgarh soon, officials informed.

The Cabinet Committee on Economic Affairs (CCEA) has also accorded ‘in-principle’ permission to NMDC Ltd for considering ‘strategic disinvestment’ of its 3 MTPA Steel plant coming up at Nagarnar in Bastar region of Chhattisgarh, the company informed BSE in December last year. It may be recalled that NMDC has proposed to use its mine lease area at deposit number 4 located at Bailadila range of hills at Bhansi near Bacheli in South Bastar’s Dantewada district in Chhattisgarh for meeting the raw material requirement ‘exclusively’ for its upcoming 3 MTPA Integrated Steel Plant at Nagarnar, officials informed.

The remaining iron ore quantity after meeting the requirement of an integrated steel plant at Nagarnar from deposit 4 will be sold to domestic customers in Chhattisgarh, they informed.

The Deposit — 4 iron ore mine will be developed as a ‘standalone project’ with an estimated investment of Rs 1899.74 crore. NMDC proposes for mining the Deposit number 4 iron ore mine with a production capacity of 7.0 MTPA in the mine lease area of 646.596 hectares. NMDC’s iron ore requirement for the steel plant would be 5 MTPA.

The exploration work was done at Bailadila Deposit no 4 by NMDC in the year back in 1972-74. The ore reserves were proved by detailed exploration activities.

The Deposit — 4 have a production capacity of 7.0 MTPA and spread in a mining lease area of 646.596 hectares.

In addition to the mining lease area, 95.13 hectares forest land is identified for development of infrastructure such as downhill conveyor, screening plant, loading plant and approach road etc.

Further, 50 hectares of non-forest land is also required for installation of railway stock yard, administrative building, loading plant (part), tailing dam, STP and township etc.

The existing iron ore production from other Bailadila mines is catering to requirements of large steel plants and also to local sponge iron/pellet plants in Chhattisgarh.

The company has made a capital expenditure of Rs 4.76 crore as on September 2016 for development of its Bailadila iron ore mines in Bastar region of Chhattisgarh during the current financial year, officials informed.

The company is now going for construction of the 5th iron ore screening line at its existing screening plant number 2 at Bailadila Iron Ore Mine at Kirandul complex in Dantewada district of B0astar region.

It has also commenced the process for setting up the 2 MTPA ‘iron ore processing plant’ at Bacheli in Bastar region of Chhattisgarh, officials informed.

The tender for site levelling work had already been floated for setting up the project, they informed.

Mining plan along with progressive mine closure plan has been approved by Indian Bureau of Mines (IBM), for production capacity of 7.0 MTPA vide their letter no: No 314(3)/2012-MCCM (CZ)/MP-19 dated July 26, 2013, officials informed.

NMDC is operating iron ore mines at Bailadila Complex in South Bastar Dantewada District, Chhattisgarh and is having long terms commitment for supply of iron ore to major steel plants across the country.

Hence, JV Company between NMDC and Chhattisgarh Mineral Development Corporation (CMDC) ie NMDC-CMDC (NCL) was formed for development of a new deposit in the already prospected areas ie Bailadila Deposit-4 with a production capacity of 7 MTPA for meeting the iron ore requirement of Steel plant of NMDC at Nagarnar, near Jagdalpur.

It may also be recalled that NMDC Ltd is going for a complete Energy Audit for Bailadila Iron Ore Mine at Deposit 14 and 11C at Kirandul complex and Deposit 5, 10 and 11A at Bacheli Complex in Bastar region of Chhattisgarh.

The company is also planning to construct a ‘rapid iron ore loading system’ with a capacity of 14 million tonnes per annum (MTPA) at its Kirandul complex in Bastar, officials informed.

Source: daily pioneer