NMDC Limited : Pushing the boundaries of responsible mining

By Vinay Kumar | Director (Technical) | NMDC Limited

As India accelerates toward its vision of becoming a $5 trillion economy by FY28, NMDC Limited stands at the forefront of this transformation. With a legacy rooted in resource exploration and extraction, the company is redefining its role in a rapidly evolving global landscape. NMDC’s 2024 journey highlights its commitment to innovation, sustainability, and inclusivity—key pillars shaping its ascent as a leader. From driving sustainable mining practices to embracing innovative technologies, NMDC has redefined, what it means to be, a socially responsible and forward-thinking enterprise. The company’s 2024 journey has been nothing short of remarkable, marked by bold expansions, technological advancements, and impactful contributions to society.

With its unwavering focus on sustainable development, NMDC is crafting a future that balances industrial growth with environmental stewardship and social equity.

India’s mining sector is undergoing a revolutionary transformation, with a strong emphasis on self-reliance in critical minerals. At NMDC, we’re actively tapping on opportunities in battery minerals and steel making raw material to support the government’s critical mineral mission and propel the nation towards a mineral secure future. 

Diving into our commitment for environmental stewardship, we are working towards zero waste mining by innovatively utilizing diverse grades of iron ore.

Mining Innovation: A Greener Path to Resource Extraction

Mining is at the heart of NMDC’s operations, and the company is setting new benchmarks in this traditionally resource-intensive industry. With an iron ore production target of 100 MTPA by FY 2029-30, NMDC is embracing innovation to ensure that growth is achieved sustainably.

NMDC is pioneering a new era in mining with our “Smart Mining” initiatives. Our comprehensive smart mining approach encompasses innovative technological interventions- Drone based Exploration, Fleet Management System, Automatic Sample Collection System, Rapid Wagon Loading System and automatic capturing of production and dispatch information in real-time, thus optimizing our operational efficacy.

In 2024, NMDC was recognized by ASSOCHAM for its excellence in Green Mining Innovation. This recognition highlights the company’s efforts in adopting cutting-edge technologies and sustainable practices. NMDC has invested in renewable energy solutions to power its operations, reducing dependency on fossil fuels. Additionally, the company has implemented measures to minimize waste generation and maximize resource utilization, such as advanced beneficiation techniques that improve ore recovery rates.

Key initiatives include:

• Digital Transformation: Leveraging real-time monitoring systems and predictive analytics to optimize mining operations.
• Renewable Energy Integration: Harnessing solar and wind power to support mining and processing activities.
• Water Management: Recycling and reusing water in operations to conserve local water resources.

Through these efforts, NMDC is not only addressing environmental concerns but also setting an example for the mining industry to adopt greener practices.

Empowering Communities: NMDC’s CSR Impact

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NMDC’s role as a nation-builder extends far beyond its industrial achievements. Through its comprehensive Corporate Social Responsibility (CSR) programs, the Company has significantly improved the quality of life for communities near its operational areas. CSR remains an integral part of NMDC’s vision, ensuring that the benefits of industrial growth are shared equitably and inclusively.

In FY 2024-25, NMDC has reaffirmed its commitment to sustainable and inclusive development by allocating ₹133.63 crore for CSR initiatives, encompassing 166 projects. Of this, ₹99.51 crore will be directly implemented by NMDC, while ₹34.12 crore will be executed in partnership with State authorities. NMDC undertakes various CSR activities including healthcare, child welfare and rural infrastructure development.

Education and skill development remain the key focus areas of NMDC’s CSR activities. The flagship Balika Shiksha Yojana, which sponsors professional nursing courses for tribal girls from the Bastar Division, has been increased from 40 to 85 seats this year, with a target of reaching 200 seats next year. This initiative fosters gender equality and improves healthcare access. Additionally, NMDC has plans to strengthen institutions like Aastha Gurukul and Saksham, literacy enhancement programs, vocational training programs, and upgrade infrastructure in underdeveloped regions.

Healthcare efforts include building health centres, installing solar-powered systems, and providing modern medical equipment to enhance accessibility in remote areas. For child welfare, NMDC focuses on developing Anganwadi centres to improve nutrition and well-being. Rural infrastructure projects, such as roads and community halls, aim to boost connectivity and overall living standards, underscoring NMDC’s enduring commitment to holistic community development.

Financial Resilience and enhancing Stakeholder Value

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NMDC’s financial and operational performance in H1 of FY24-25 has been nothing short of remarkable. NMDC has achieved a turnover of ₹10,909 crore, reflecting a 9% year-on-year growth, while Profit After Tax (PAT) surged by 21.5% to ₹3,253 crore, showcasing robust financial performance. This performance is underscored by record-breaking production and sales figures of 17.5 million tonnes and 19.80 million tonnes of Iron ore, respectively. NMDC’s financial performance in 2024 reflects its ability to deliver value despite global economic uncertainties.

NMDC has been at the forefront of maximising the wealth of its investors in terms of strong dividend yield. The recent announcement of bonus share issue in the ratio 2:1 i.e. two new bonus equity shares for every one existing share, reinforces the company’s commitment to rewarding its shareholders.

The company’s focus on operational efficiency has also translated into cost savings and enhanced profitability. Investments in automation, digitalization, and renewable energy have helped NMDC maintain its competitive edge in an increasingly dynamic market.

As NMDC looks to the future, its ambitions are both bold and inspiring. The company’s Vision 2030 outlines a roadmap to achieve an iron ore production of 100 MTPA, cementing its leadership in the iron ore sector.

A Catalyst for Sustainable Progress

NMDC is pursuing an ambitious growth trajectory with a vision to establish itself as a global mining leader through strategic expansion. Domestically, the company is enhancing its operations by developing new mining assets, such as Deposit 13 and Deposit 4 in Chhattisgarh through NMDC-CMDC Ltd (NCL) and developing an 8 MTPA coking coal block in Jharkhand to reduce reliance on imports. Additionally, NMDC is developing a 2.3 MTPA Thermal Coal Asset in Jharkhand. Capacity augmentation of the KK railway line to 60 MTPA, the construction of a 15 MTPA slurry pipeline, and building stockyards are part of its roadmap to achieve an iron ore production of 100 MTPA by 2030. Internationally, NMDC is advancing its footprint with initiatives such as gold mining at Mount Celia in Australia and coal production and exports from the ICVL Benga Mine in Mozambique. Additionally, NMDC is also scouting for mineral assets in Africa, Southeast Asia, and Latin America for minerals of strategic interest specially battery minerals and raw materials for steel sector underscores its commitment to diversification and global growth.

NMDC’s transformation is more than just a strategy; it is a blueprint for responsible growth. By embracing green technologies, driving innovation and fostering socioeconomic development, NMDC is setting a precedent for what a 21st-century mining company should be. NMDC’s 2024 milestones reflect a company that is not only meeting the demands of today but also preparing for the opportunities and challenges of tomorrow. By embracing green technologies, driving innovation in mining and steel production, and empowering communities through impactful CSR initiatives, NMDC is redefining what it means to be an industry leader in the 21st century.

NMDC International and Mineral Diversification Strategy

NMDC is pursuing an ambitious international diversification strategy, focusing on both geographical and mineral diversification to secure the requirement for battery minerals and raw material for steel sector for India’s growth. In Australia, the company has successfully commissioned Mt. Celia gold mine and is advancing work on 6–7 additional high-potential sites. Through its partnership with Hancock Prospecting, one of the largest global mining players, NMDC is conducting a Definitive Feasibility Study (DFS study) for magnetite asset and carrying out exploration for lithium deposits in Australia. Additionally, NMDC is exploring opportunities in Western Africa, strategically targeting minerals essential for steel industry and battery minerals such as Lithium. With a balanced investment approach and collaborations with global industry leaders, NMDC is reinforcing national security and safeguarding India from potential supply chain disruptions of vital minerals. NMDC remains committed to upholding the highest standards of environmental, social, and governance (ESG) practices, ensuring that its operations contribute positively to the environment and the well-being of communities, while pursuing these ambitious goals.

(Shilpa Bichitra | Special Edition | 2024)