Monday, March 16, 2009

NMDC Iron Ore Production To Decline By 5 Percent

The production and sales of iron ore of NMDC is likely to decline by five per cent in the current financial year, according to its Chairman and Managing Director Rana Som.

Taking to reporters on the sidelines of a seminar here on Monday, Mr. Som said production was expected to be 28.5 million tonnes, down from the 30 million tonnes last year. Steel mills in Japan and South Korea, which purchased 10 per cent or 3.4 million tonnes of the output of NMDC, might take only two-thirds of their total order.

With the rise in long-term prices, NMDC was hoping a 40 per cent increase in its gross profit by the end of the current fiscal, which would offset the loss due to decline in production and sales.

The CMD said that the company was proposing to acquire a coal mine in Queensland in Australia for $15 million in about two months to provide linkage for its steel plant at Nagarnar in Chhattisgarh.

Source: The Hindu

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