Iron ore, a key raw material in steel production, is crucial for India's steel industry. The National Steel Policy projects India's production capacity to reach 300 million tonnes by 2030, up from approximately 155 million tonnes currently.

Based in Hyderabad, NMDC operates mines in Chhattisgarh and Karnataka. India ranks as the fourth-largest iron ore producer globally, with the country's production rising by 7% year-on-year to 275 million tonnes in FY24. NMDC holds a 16% market share in the domestic market.

The company stated that its expansion is driven by the increasing domestic and international demand for iron ore, which is being propelled by rapid industrialization. NMDC mentioned that, in addition to increasing its production capacity and enhancing evacuation infrastructure, it plans to develop advanced slurry pipelines, pellet and beneficiation plants, and a strong network of stockyards.

For the current fiscal year, NMDC has allocated a capital expenditure of Rs 2,200 crore, focusing mainly on the slurry pipeline and new processing plants. In FY24, the company spent Rs 2,066 crore on capex, a record high and exceeding its target of Rs 1,769 crore. NMDC is constructing a 15 million tonne slurry pipeline via Nagarnar in Chhattisgarh, expected to be operational by FY27. Additionally, it is developing a 2 million tonne pellet plant and a 10 million tonne beneficiation plant along this pipeline.

Beyond iron ore, NMDC also produces diamonds, pellets, and wind power. The company has a wind power capacity of 10.5 MW in Karnataka and resumed operations at its Panna Diamond Mine in Madhya Pradesh in the previous fiscal year. NMDC is also preparing to begin production at its 8 million tonne coking coal block by December 2025 and is exploring mining opportunities overseas for critical minerals such as lithium, cobalt, and nickel. These initiatives will be carried out through its subsidiary, Legacy India Iron Ore Limited, including lithium mining operations in Australia.