Financial Daily from THE HINDU group of publications
Monday, Jun 07, 2004
NMDC turnover up 20%; plans diversification
Hyderabad , June 6
NATIONAL Mineral Development Corporation Ltd (NMDC) has posted a turnover of Rs 1,454 crore and a net profit of Rs 433 crore during 2003-04.
The corporation's turnover has increased by 20 per cent and net profit has risen by 38.78 per cent compared to the turnover of Rs 1,214 crore and a profit of Rs 312 crore the previous year. The NMDC board has proposed a dividend of 35 per cent for the last fiscal.The PSU aims to produce 30 million tonnes of iron ore per annum from 2010.
NMDC plans to diversify into mining of gold, beach sand and coal. With regard to gold, it has undertaken reconnaissance work in Karnataka. To expand its diamonds business, the corporation is exploring the possibility of a tie-up with De Beers and other multinational companies, according to the NMDC Chairman and Managing Director, Mr B. Ramesh Kumar.
Last fiscal, NMDC produced 17.96 mt of iron ore and 71,163 carats of diamonds. It sold 21 mt of iron ore worth Rs 1,411 crore. Of this, exports accounted for Rs 763 crore.
Mr Kumar said that the corporation would invest up to Rs 1,200 crore for achieving the targeted iron ore production by 2010.
A new project, Bailadila - 10 & 11 A in Chhattisgarh - designed to produce 4.5 mt of iron ore a year has been commissioned and production has commenced. Small-scale mining in Kumaraswamy in Karnataka and Bailadila deposit - 11/Bwould be developed into full-fledged projects.
Mr Kumar said that there was a proposal to form a joint venture between NMDC and Chhattisgarh Mineral Development Corporation Ltd (CMDC), an undertaking of the Chhattisgarh Government, for mining and marketing iron ore from Bailadila deposit-1. The corporation is also trying to acquire mining leases in other deposits of the Bailadila range, the Ramandurg area in Karnataka and the Bonai sector in Orissa.
The NMDC chief said the corporation had taken up diamond exploration work in Andhra Pradesh. By conducting air borne magnetic survey and other studies, NMDC zeroed in on an area of 120 sq km in the Kalyandurg block of Anantapur district in the State. Following this, the corporation applied for a prospecting licence for evaluating diamond mining potential in the area. Currently, NMDC is doing prospecting work in Anumpalle, Venkatmpalle and Changicherla areas in the district.
Mr Kumar said, gold reconnaissance work was in progress in a 702-sq km area in Chitradurga and remote sensing studies were being undertaken in an area of 1,294 sq km in Sandur in Karnataka.
NMDC had carried out exploration work and had submitted a techno-economic report in Tanzania. Further action was being planned in this regard.
Stories in this Section
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line