State-Owned Miner Plans Commercial Thermal Coal Production Between October and December
New Delhi (Economy India): State-owned mining major NMDC is set to begin commercial production of thermal coal during the October-December quarter, with the company targeting sales of around 1 million tonnes (MT) of dry fuel during FY27, Chairman Amitava Mukherjee said.
The planned entry into commercial coal production is part of NMDC’s broader strategy to diversify its mining operations and support India’s growing energy and industrial requirements.
NMDC Expands Beyond Iron Ore
NMDC, under the Ministry of Steel, is India’s largest iron ore mining company and plays a significant role in supplying the raw material required by the domestic steel industry.
The Hyderabad-based company currently caters to around 20 per cent of India’s iron ore requirement, according to the information shared by the company.
While iron ore remains NMDC’s core business, the company is now looking to expand its mining portfolio into other minerals and resources.
Commercial Coal Production to Begin by October-December
Speaking to PTI, Mukherjee said NMDC expects to commence commercial thermal coal production in the October-December period.
The company is targeting approximately 1 MT of coal sales in FY27, marking an important step in its diversification strategy.
The move will expand NMDC’s presence beyond its traditional iron ore operations and provide the company with exposure to India’s large thermal coal market.
Diversification Road Map Through 2030
Mukherjee said NMDC has prepared a road map up to 2030 to diversify its mining operations.
The strategy is aligned with the government’s broader vision of building a Viksit Bharat, with greater domestic capacity across critical minerals, mining and industrial raw materials.
For NMDC, diversification is intended to create new growth opportunities while strengthening the company’s contribution to India’s industrial and economic development.
Supporting India’s Industrial Growth
Iron ore remains crucial for India’s steel industry, while coal continues to play an important role in the country’s energy ecosystem.
NMDC’s expansion into thermal coal therefore represents a move into another strategically important resource.
The company’s planned coal production and sales could help strengthen its overall mining portfolio while creating additional revenue opportunities.
NMDC’s Role in the Iron Ore Sector
NMDC is a major supplier of iron ore to India’s steel industry. Its operations support a significant portion of domestic iron ore demand.
With around one-fifth of the country’s iron ore requirement being catered to by NMDC, the company has an important role in supporting steel production and India’s broader infrastructure and manufacturing ambitions.
Its diversification into coal and other mining activities could further broaden its strategic importance to the domestic economy.
Focus on Long-Term Mining Growth
The planned commercial coal production is part of NMDC’s longer-term transformation strategy rather than a standalone expansion.
By setting a diversification road map through 2030, the company aims to develop a broader mining portfolio and identify new areas of growth.
The start of commercial thermal coal production in the October-December quarter and the target of selling around 1 MT in FY27 mark the first major milestones in this expansion.
As NMDC implements its 2030 strategy, diversification into coal and other minerals could become increasingly important to the company’s future growth.
(Economy India)
