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NMDC to get financial due diligence done for Deposit 14

Mining News - Published on Tue, 02 Jan 2018

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Daily Pioneer reported that NMDC Ltd will soon seek consultancy for financial due diligence of Detailed Project Report prepared for Bailadila Iron Ore Deposit 14 in Bastar region of Chhattisgarh, officials informed. It may be recalled that the company is also seeking consultancy for financial due diligence of its DPR made for Bailadila Iron Ore Deposit 11C in Bastar region of Chhattisgarh.

Official informed that NMDC has proposed to use its mine lease area at Deposit number 4 located at Bailadila range of hills at Bhansi near Bacheli in South Bastar’s Dantewada district in Chhattisgarh for meeting the raw material requirement ‘exclusively’ for its upcoming 3 million tonne per annum Integrated Steel Plant at Nagarnar.

The remaining iron ore quantity after meeting the requirement of integrated steel plant at Nagarnar from Deposit 4 will be sold to domestic customers in Chhattisgarh, they informed.

The Deposit 4 iron ore mine will be developed as a ‘standalone project’ with an estimated investment of INR 1899.74 crore.

Notably, NMDC had proposed for mining the Deposit number 4 iron ore mine with a production capacity of 7.0 MTPA in the mine lease area of 646.596 hectares. Notably, NMDC’s iron ore requirement for the Nagarnar steel plant would be 5 MTPA.

The exploration work was done at Bailadila Deposit No. 4 by NMDC in the year back in 1972-74. The ore reserves were proved by detailed exploration activities. The Deposit 4 has a production capacity of 7.0 MTPA and spread in a mining lease area of 646.596 hectares.

In addition to the mining lease area, 95.13 hectares forest land is identified for development of infrastructure such as downhill conveyor, screening plant, loading plant and approach road etc.

Notably, NMDC Ltd’s Bailadila Iron Ore Dep-13 lease in Kirandul village at Bacheli in South Bastar district of Dantewada has been registered in favour of NMDC-CMDC Ltd on December 4, 2017 .

Earlier the lease deed of Deposit-13 was executed by NMDC on January 10, 2017 pursuant to lease grant order dated January 1, 2017.

The transfer of lease from NMDC to NCL was warranted as per the clause of the JV agreement and conditions in the lease grant order. NMDC-CMDC Ltd is a Joint Venture company in which the ratio of equity holding of NMDC and CMDC are 51 % and 49 % respectively.

NMDC-CMDC Ltd has planned to start the mining operations in FY 2018-19 and the production of Deposit-13 would meet the need of C’garh based sponge iron industries and other domestic steel makers.

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Posted By : Rabi Wangkhem on Tue, 02 Jan 2018
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