Indian state-owned miner National Mineral Development Corp. Ltd. seeks to increase its annual iron ore output to 48 million tonnes by its fiscal 2021 on the back of expected sales and higher prices due to a supply shortage, Argus Media reported Jan. 10.
The miner, known as NMDC, produced 22 Mt of iron ore from April to December in its fiscal 2020. Output reached 32.4 Mt in fiscal 2019. In April 2019, the company outlined plans to boost iron ore production to 63 Mt by fiscal 2022.
NMDC's plans to boost output will rely on the restart of its Donimalai iron ore operation in Karnataka state, which has been the subject of a royalty dispute between the company and the state government, according to the report.
In August 2019, India's mining ministry tribunal issued a stay order on the Karnataka government's decision to revoke NMDC's 20-year mining lease extension, which stemmed from the company's refusal to pay an increased 80% sales premium.
In December 2019, NMDC secured government approval to expand the capacity of its Kumaraswamy iron ore mines, part of the Donimalai property, to 10 million tonnes per annum from 7 mtpa for its fiscal 2021 and 2022.