NMDC Reports 18% Growth in February Iron Ore Production While Sales Remain Steady
The state-owned mining giant NMDC Limited has achieved an impressive 18% year-on-year increase in iron ore production for February 2025, while sales volumes maintained stability compared to the previous year. This performance highlights the company's operational efficiency and positions it well for its ambitious expansion targets.
February Production Reaches Historic High
NMDC's iron ore production reached 4.62 million tonnes (MT) in February 2025, marking a significant 18% jump from the 3.92 MT recorded in the same month last year. This output represents the highest February production in the company's history, demonstrating its growing operational capabilities.
Meanwhile, sales figures remained virtually unchanged at 3.98 MT compared to 3.99 MT in February 2024, indicating stable demand despite increased production capacity.
Strong Operational Momentum
The substantial increase in production volumes reflects NMDC's commitment to operational excellence. Mr. Amitava Mukherjee, who currently holds additional charge as CMD of NMDC, attributed this growth to the company's efficient mining ecosystem.
"Consistent growth like this is an outcome of an efficient mining ecosystem driven by an innovative and ingenious spirit," stated Mukherjee. He further emphasized that the team is "relentless in its pursuit of crossing new milestones in FY25."
Year-to-Date Performance
For the 11-month period ending February 2025, NMDC reported:
- Total production of 40.49 MT, marginally higher than the 40.24 MT from the same period last fiscal year
- Sales volume of 40.20 MT, slightly down from 40.48 MT in the comparable period
These figures demonstrate NMDC's ability to maintain consistent production volumes over extended periods while adapting to market conditions.
Ambitious Expansion Plans
NMDC, which stands as India's largest iron ore miner, has set its sights on substantial growth in the coming years. The company has committed to an ambitious target of building a 100 MT iron ore mining capacity by 2030.
To achieve this significant expansion, NMDC recently announced a capital expenditure plan of ₹70,000 crore. This investment is expected to fund various expansion projects, technological upgrades, and new mining opportunities.
Future Outlook
Looking ahead, Mukherjee expressed optimism about the upcoming financial year, noting that it is "lined up with determined expansion and new opportunities." The company appears well-positioned to capitalize on growing demand for iron ore, a critical raw material for India's expanding steel industry.
As India continues its infrastructure development push and manufacturing growth, NMDC's increased production capacity is likely to play a vital role in ensuring stable supply of this essential commodity to domestic steel producers.
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