The government of Chhattisgarh has granted a 20-year extension to the National Mineral Development Corporation (NMDC) for the lease of four iron ore mines in Balidala. The lease for these mines in the central part of India was due to expire in Mar 2020.
NMDC’s lease will be valid till the year 2035, as per provisions of the law. In FY 2018-19, the company achieved a record production of 32.36mn mt and sales of 32.36mn mt, as per the annual report. NMDC’s annual iron ore production capacity is 43mn mt with a domestic market share of 24pc.
NMDC plans to increase their annual iron ore production capacity to 67mn mt, to meet rising domestic steel demand. It is also setting up integrated steel plant of 3mn mt of installed capacity in Chhattisgarh, which is expected to start production in FY 2021.