NMDC ramps up mining capacity

Government-owned NMDC Limited is ramping up its iron ore mining capacity and is planning to set up a new integrated steel manufacturing plant at a cost of 2.2 billion dollars (about Rs 15,335 crore). The steel plant is likely to be commissioned during the second half of 2019-20 (October 2019 to March 2020), it said in an investor presentation. "At 100 per cent capacity, the steel plant will contribute 1.7 billion dollars (about 11,750 crore) to the company's top line with earnings before interest, tax, depreciation and amortisation (EBITDA) of 25 per cent," said the public sector navratna. It will produce flat products like hot rolled plates, sheets, coils, automotive steel and API grade steel to the tune of 2.7 million tonnes. India's steel consumption is expected to grow at a compound annual growth rate of 7.4 per cent over the next 12 years.