State-owned miner NMDC has said it needs government support in terms of allocation of iron ore mines to check increasing import pressure from international biggies like Rio Tinto and BHP Billiton.
“India is likely to face increasing pressure of iron ore import from Big-3 miners (Vale, BHP Billiton and Rio Tinto)… (NMDC) needs to assess our product-mix, pricing strategy… It needs proactive support from the government for policies related to allocation of iron ore leases, auction of mines and exports,” NMDC said in its latest annual report.
The miner has plans to increase mining capacity to 75 million tonnes per annum by FY19 and 100 MTPA by FY22 from the current level of 34 MTPA, it said.
On challenges, the report said increasing regulatory pressure, uncertainty on mine allotments after passing of the MMDR Amendment Act, 2015, along with increased competition and growing threat from imports of iron ore are some of the issues that may impact the company’s performance.
“One of the major risks is the disturbances due to Maoist activities in Bailadila region. The company is in contact with government agencies for support and protection of its employees and installations. Timely enhancement of evacuation capacity in line with production plans also remains a potential risk,” the report said.
Along with strategic diversification into other commodities, NMDC plans to expand presence outside India selectively into key mining countries such as Australia, South Africa and other African regions.
The company had spent Rs 3,136 crore as capital expenditure in the last financial year, the highest in any given year since its inception.