NMDC Ltd Contributing to Development of the Nation

Rana Som, CMD, NMDC Ltd

NMDC Limited is a public sector enterprise under the Ministry of Steel, primarily engaged in the business of exploring minerals and developing mines to produce raw materials for the industry, it is also expanding its activities towards steel making and other value added products. It has been conferred “Navratna” status by the Government.

Incorporated in 1958, NMDC has been actively contributing to development of the nation for five decades and grown from strength to strength on its journey to nation building.

Single largest producer of Iron Ore in the Country-NMDC produces around 30 million tonnes of iron ore annually which is around 20% of India’s iron ore production.

Only Mechanized Diamond Mine in Asia-NMDC also operates the only mechanized diamond mine in Asia with a capacity to produce one lakh carats per annum from its Panna Diamond Mine, Madhya Pradesh.

Market Capitalization- The present market capitalization of NMDC shares is about Rs.1,00,000 crore which is one of the highest in public sector enterprises category.

EBIDTA : The EBIDTA margin as on 31st March 2011 is 80% which is once again the highest in any sector.

Low Cost Producer of Iron Ore: NMDC is also known in mining industry for its scientific methods of mine planning and mining, which makes it as one of the lowest cost producer of iron ore in the world.

Output per Manshift and Value Addition per Employee : The output per manshift is 27.73 tonnes (iron ore) and value addition per employee (2010-11) is Rs.1.59 crore which is the best in the industry.

Consistent Dividend Paying Company : NMDC for the past 20 years has been paying consistently dividend to its shareholders. NMDC has paid approximately Rs.3,533 crore as dividend to the rGovernment till 2009-10. An interim dividend of Rs.410 crore is already paid and the proposed final dividend to the Government  is Rs.767 crore for the year 2010-11. The total payment made to Government of India so far is Rs.3,944 crore and after making the final dividend payment it would be Rs.4,711 crore.

Supporter of Domestic Steel Producers :  NMDC has made a policy of allocating almost 90% of its iron ore production for supporting the domestic steel producers.

Zero Waste Mining Company: The slimes and Banded Hematite Jasper (BHJ) and Banded Hematite Quartz (BHQ), low iron content material was earlier treated as waste. Now NMDC has plans to convert them into pellets for utilization by steel manufacturers by setting up state of the art beneficiation / pellet plants.

Disinvestment : NMDC during March 2010 concluded a disinvestment process in a record time of 64 days which falls under “faster than fast track”. The Government of India disinvested about 33.20 crore shares of face value of Re.1/- each which generated around Rs.10,000 crore for the Government.

NMDC’s entry into steel making: NMDC is setting up an integrated steel plant of 3 MTPA at Nagarnar in the State of Chhattisgarh for which the land acquisition has been completed in August 2010. During the month of February 2011, NMDC signed an agreement with MECON for rendering Engineering Consultancy services for etting up of the Integrated Steel Plant, similarly in March 2011, NMDC signed Contract Agreement with consortium comprising Siemens VAI, Austria, SVAI India and NCC Ltd., for turnkey execution of a Sinter Plant Complex and during May 2011 NMDC also signed the contract for setting up the country’s largest blast furnace of 4506 cubic metre for its steel plant with Tata Projects Limited, Danieli Corus, Netherland and Danieli Corus, India.

The demand of Dead Burnt Magnesia (DBM) in India has increased with the rise in production of steel in the country. Added to this, reduction in the export of DBM from China to various countries has resulted in the increase in price of various grades of DBM products. In view of this changed scenario action to set up the Panthal Magnesite Project has been revived. The detailed project report and due diligence report with Capex of Rs.143.0 crore for the Magnesite Project was approved by J&KMDC (A Subsidiary Company of NMDC Limited) Board. The mine capacity is 1.24 lakh tonnes per annum and the proposed DBM Plant capacity would be 30,000 tonnes per annum.

NMDC has also plans to set up a second steel plant of 2.0 MTPA capacity in State of Karnataka for which NMDC has already acquired around 2500 acres of land.

NMDC Global : NMDC Global –  International Investment Division of NMDC within its one year of formation has actively examined number of proposals in Africa, Australia, Europe and South America. A  Joint Venture has been formed with Black Economic Empower (BEE) Investment Company at South Africa expanding business in African Continent.

Global Exploration Centre: NMDC has got a drilling division at Raipur for taking up exploratory drilling works at potential mineral deposits. This has been strengthened to take up strategic exploration in mineral rich states (mainly iron ore) at no cost to the State Governments. Besides, this would concentrate on establishing additional resources by undertaking exploration in and around existing deposits and areas within the lease area.

A Centre of Excellence:  From a nucleus R&D cell set up in 1970, it has grown into a highly sophisticated R&D Centre. One of the best-equipped laboratories of its kind, the Centre at Hyderabad can take up any assignment in the field of ore beneficiation and mineral processing. With its excellent research facilities, the Centre carries out technology development missions in fields like mineral processing, flow sheet development, mineralogical studies and product development. It has been recognized as a “Centre of Excellence”.

A Pilot Plant facility for production of Carbon free Sponge Iron Powder has been created based on research work done on value addition of Blue Dust at R&D Centre. The process route consists of reduction of blue dust by hydrogen produced through electrolyses of Water. The powder has major application for making powder metallurgy component, soft magnetic components, friction materials and food fortification.

Corporate Responsibility
NMDC as a corporate social entity shows human face towards the society which is reflected through its CSR activities. NMDC, not merely pursuing its corporate agenda, but also ensuring that it benefits the communities in and around the areas of its activities. These include the local communities, tribal populations in particular, and for society at large. The philosophy of NMDC of building ‘socially congenial atmosphere for industrial growth with a human face’ by Putting People First which has been even felt and appreciated by local beneficiaries and communities.

NMDC as a pioneering initiative has been earmarking certain percentage of its retained profits of the preceding year as the budget for the succeeding year for CSR. NMDC is the only PSU to have such a lofty CSR ideal and has a comprehensive CSR policy document in order to identify and help underdeveloped areas with special emphasis on areas in and around Projects and Establishments of NMDC having predominantly SC, Tribal and other under privileged population.

The areas of focus have been

1. Literacy & Education
2. Scholarship Schemes/Mid-day meal supplements
3. Safe Drinking Water/Health care and Sanitation
4. Skill Development for sustainable income generation and livelihood
5. Agriculture and Infrastructure Development

With ‘People’ at the heart of its philosophy and approach to CSR, NMDC is seeking to carryout meaningful work in the fields of Education, Health care; Sustainable Income generation and Agricultural development thus contribute to the Nation Building. NMDC’s CSR initiatives are based on the firm belief that organization and community depend on each other.

Contribution to the Indian Economy

1. It has earned foreign exchange to the tune of Rs.16,228 crore.

2. It has been paying dividend since 1990-91. For the financial year ended 31 March 2010, the dividend paid to the Government of India is Rs.649 crore and the cumulative dividend upto 2009-10 is Rs.3,533 crore approximately.

3. In 2009-10 gross contribution to the national exchequer was Rs.3,123 crore.

4.  It has about 6000 employees.

(PIB Features)

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