State-owned iron ore giant NMDC is actively scouting for mining assets across four continents to diversify beyond its core iron ore business. According to industry sources, the company aims to earn at least 20% of revenues from the sale of minerals other than the key steelmaking raw material. Currently, NMDC caters to India's one-fourth iron ore demand and operates as a 99.9% iron ore company. As reported by Rediff Moneynews, the PSU is exploring opportunities in South America, Australia, Africa, Brazil, and parts of Asia for critical minerals including lithium, copper, cobalt, and rare earth elements. The company has set a goal to become India's largest mineral mining company and reduce its current dependence on iron ore.
The company's diversification strategy extends beyond critical minerals to include traditional industrial minerals. According to industry sources, NMDC is scouting for limestone mines, dolomite, coking coal and tungsten blocks in the UAE, Oman, Bhutan, and Australia. As reported by Rediff Moneynews, acquiring these minerals will allow NMDC to cater to major industries in India on a growth trajectory, including steel, automotive, electronics, renewable energy, aerospace and defence, railway and metros. When asked for comment, NMDC stated it aims to help growing industries in the country with the maximum of their mineral needs.
The expansion aligns directly with government initiatives aimed at securing long-term raw material supplies and reducing import dependency. According to the Ministry of Steel's draft Steel Policy Vision 2047, raw materials account for around 65-70% of steelmaking costs. The draft policy aims to reduce import dependence through domestic mining, washery expansion, asset acquisition, long-term supply arrangements, and AI-based optimisation of coal blends. As reported by Rediff Moneynews, India's objective of increasing manufacturing share in the economy, supported by initiatives such as Make in India, Production Linked Incentive (PLI) Scheme, semiconductor manufacturing, defence indigenisation and industrial corridors, is expected to significantly expand steel consumption across multiple sectors including automotive, engineering goods, capital goods, machinery, shipbuilding, renewable energy equipment and defence production.
NMDC Chairman Amitava Mukherjee has confirmed the company is working on strategies to diversify into selling other minerals, as reported by PTI. In an earlier interview, Mukherjee stated that NMDC aims to be India's largest mineral mining company and earn at least 20% of revenue from minerals other than iron ore. The diversification strategy positions NMDC to capitalize on India's growing industrial demand across multiple sectors, supporting the country's manufacturing expansion and reducing dependence on imported raw materials. The company's expansion across four continents demonstrates its commitment to securing future mineral supplies for India's industrial growth.
