State-run miner NMDC Ltd has approved an investment of approximately ₹3,000 crore to build a blending yard in Visakhapatnam, as reported by NDTV. Chairman and Managing Director Amitava Mukherjee announced this during the company's earnings call on June 1. The facility will be developed on land acquired by NMDC in Visakhapatnam and is expected to be completed within two to two-and-a-half years. The blending yard will support future projects, including a pellet plant and potential processing facilities for critical minerals.
According to reports from NDTV, NMDC plans to launch India's first branded iron ore product with fixed quality specifications, marking a shift from selling bulk ore. The company expects this product to command a premium in the market, with Mukherjee stating that NMDC will be the first company in three years' time to sell branded iron ore. The facility will combine ore from different sources to create products with consistent chemical characteristics, including iron content, silica, alumina, and phosphorous levels. This approach is similar to branded products sold by major global miners, addressing the current gap where Indian miners generally sell ore without standardised blending, resulting in quality variations between consignments.
As reported by NDTV, the blending facility forms part of NMDC's broader expansion strategy to increase production capacity to 100 million tonnes by the end of the decade. The company has reserved part of the land for future ventures linked to critical minerals and overseas mining acquisitions. NMDC expects to spend between ₹2,000 crore and ₹3,000 crore on overseas acquisitions during the current financial year, with some acquisition opportunities in advanced stages, although details cannot yet be disclosed.
According to NDTV, the blending facility is intended to create a differentiated product that could improve realisations and strengthen NMDC's position with steelmakers. The company expects the product to attract a premium because of the operational benefits it offers steelmakers, who use standardised specifications to improve blast furnace efficiency and maintain consistent production. This strategic move represents NMDC's evolution from being viewed as a volume-driven iron ore producer to offering value-added products with enhanced market positioning.
