Team News Riveting
Hyderabad, September 29
State-run National Mineral Development Corporation (NMDC) would resume operations in Karnataka’s Donimalai iron ore mines soon.
On September 15, the Karnataka Cabinet cleared the application to start mining operations at Donimalai. It accounts for about 18 per cent of the company’s total output.
“This is a positive culmination of the dialogue between the company, Government of Karnataka and Government of India,” Sumit Deb, Chairman-cum-Managing Director of NMDC, said while addressing the 62nd annual general meeting (AGM) of the share-holders today.
The actual resumption of mining operations in Donimalai mines is expected to start shortly, said.
This was the maiden AGM of Deb after taking over as CMD of the country’s largest iron-ore producer and exporter. He thanked all the shareholders and shared how the largest iron ore producer in India was steadily progressing as an environment friendly miner with a positive thrust on economic and social development of the country.
NMDC is continuing to advance in its mission to acquire and operate various iron ore, coal and other mineral assets in India, he added.
Deb said during the year, all of the five mining leases of Bailadila Iron Ore Mines in Chhattisgarh were extended. Besides, the ministry of coal has declared NMDC as a successful allottee of Tokisud North Coal Mine (Non-Coking Coal) and Rohne Coal Mine (Coking Coal) under Section-5 of the Coal Mines (Special Provision) Act, 2015.
As India’s largest Iron Ore mining company, NMDC is a key stakeholder in the mine to metal value chain, and the company was impacted by the unfavourable economic conditions which reflectedin the FYperformance. Turnover of the company for the year under review declined 3.74 per cent year-on-year (YoY) as it stood at Rs 11,699 crore as against Rs 12,153 crore in the previous financial year.
The margins were also impacted. Profit before tax (PBT) from continuing operations was Rs 6,123 crore compared to Rs 7,199 crore in the previous financial year 2018-2019 – a decrease of 14.95 per cent. Profit after tax (PAT) was Rs 3,610 crore compared to Rs 4,642 crore in the previous financial year 2018-19 – a decrease of 22.23 per cent.
Deb expressed confidence of a better performance in the coming quarters as NMDC was prioritizing its operational capabilities and strategies for an improved outcome in the new fiscal.
Against the backdrop of the increasing demand NMDC was able to capitalize on the increase in the domestic prices of Iron Ore which rose to a 22-month high as the unlocking of economy following Covid-19 boosted demand. Since July 2020, NMDC has recorded a rise in overall production and sales as compared to the corresponding period in July 2019, despite the current uncertain situation due to COVID-19.
NMDC has been able to achieve excellent physical performance through its continual push towards higher volumes this fiscal upto August 2020 which saw production of 10.41 MT and sales 10.85 MT inspite of COVID-19 pandemic situation.
