The Hindu Business Line : Buoyant ore prices prop up NMDC profit

, NATIONAL Mineral Development Corporation Ltd (NMDC) has recorded improved results for the financial year 2004-05 riding on buoyancy in iron ore prices.

It plans to invest Rs 1,000 crore in various expansion projects across the country and has hinted at a significant price hike this year following negotiations with overseas buyers.

Addressing a press conference, the Chairman and Managing Director of NMDC, Mr B. Ramesh Kumar, said while the incremental production and sales doubled at 13.6 per cent from 6.7 per cent and 12 per cent (6 per cent), respectively, NMDC recorded profit before tax of Rs 1,190 crore up from Rs 616.02 crore the previous year.

The turnover was Rs 2,153 crore (Rs 1,454 crore). Referring to the supply of iron ore, Mr Kumar said it supplied 157.09 lakh tonnes which accounted for 68 per cent of the total iron ore sales during the year as against the previous year's supply of 136 lakh tonnes.

The company auctioned diamonds worth Rs 50.54 crore (Rs 37.54 crore) with sales of 83,942 carats (85,318 carats) .

On its expansion plans, Mr Kumar said NMDC plans to develop Bailadila deposit initially with 3-million-tonne per annum capacity, which would be stepped up to 7 million tonnes per annum. This project is in advanced stage of execution.

Similar expansion projects are under consideration by the corporation in the Bailadila region. The Kumaraswamy iron ore project based in Karnataka with 7 million tonnes per annum capacity would leverage the existing infrastructure facilities of Donamali project.

While statutory clearances are awaited, together these two expansion projects would take Rs 600 crore, he said.

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