NMDC commissions ₹5,427 crore integrated project

NMDC Limited (

) has commissioned its ₹5,427 crore integrated iron ore processing, slurry pipeline and pellet-making project in Chhattisgarh. The project includes a 15 MTPA slurry pipeline and a 2 MTPA pellet plant at Nagarnar, connecting NMDC’s Bacheli mining operations with its steel plant. MY view The important development is that NMDC is moving further up the iron ore value chain, from mining and beneficiation to slurry transportation and pellet production. The 2 MTPA pellet plant adds a value-added product, while the 135 km slurry pipeline provides an alternative to road transportation and reduces dependence on rail evacuation. I would watch pellet production volumes, utilisation of the new facilities and the impact on realisations and margins over the coming quarters. Disclosure: I do not hold any position or have any interest in NMDC Limited as of the time of posting.