State-owned NMDC plans to ramp up its iron ore production from 28 million tonnes to 50 million tonnes per annum by 2015.
"We are contemplating production of 43 million tonnes from Bailadila sector in Chhatisgarh, while 7 million tonnes per annum would come from Donimalai sector in Karnataka. We are also looking to increase the evacuation of ore from Bailadila sector by commission a uniflow system in collaboration with railways," said NMDC joint general manager (commercial) C Hanumantha Rao.
Bailadial sector already has 8mtpa-slurry pipeline in place constructed by Essar steel and connects it to its pelletization plant at Visakhapatnam in Andhra Pradesh. The company is also looking to cut down on its exports.
"In 1960, our exports were to the tune of 6 million tonne per annum. Now it has come down to 2 million tonne per annum, which is less than the total production of 28 million tonne per annum. We have long term contracts with Japanese and South Korean steel plants, are likely to end by 2011. We may cut down more on exports after that period," Rao said.
The central government expects the production of steel to go up by 160 million tonne by 2015. "The government wants to supply majority of iron ore to domestic steel plants to fuel the production," he said.
The company has also signed up an MoU with SAIL to develop limestone mine in Himachal Pradesh. "The mine will be developed with a capacity of 3 mtpa at a project of Rs 274 crore," Rao said.
