State-owned NMDC Ltd. has signed a long-term Gas Sale Agreement (GSA) with GAIL Gas Ltd. to secure natural gas supplies for its pellet plant at Chhattisgarh's Nagarnar. According to reports from Moneycontrol, the agreement will enable the company to replace furnace oil with natural gas at its iron ore pellet plant, reducing emissions and improving operational efficiency. The pipeline extension will extend the existing network from Dhamra Port to Damanjodi that currently supplies gas to National Aluminium Company Ltd's (NALCO) plant.
A 130-km natural gas pipeline will be laid from Damanjodi in Odisha to NMDC's Nagarnar Pellet plant, as reported by Moneycontrol. Under the agreement, GAIL Gas will develop the required pipeline connectivity and establish a gas receiving and metering station at Nagarnar to ensure reliable natural gas supply. The expansion of the natural gas pipeline network into the Jagdalpur region is expected to facilitate the transition to cleaner industrial fuel.
The switch from furnace oil to natural gas is expected to substantially reduce emissions while improving process efficiency, product quality and long-term cost competitiveness at the 2.0 MTPA pellet plant, according to Moneycontrol reports. NMDC Chairman and Managing Director Amitava Mukherjee stated that the agreement marked a significant step towards cleaner and more sustainable operations, reflecting the company's commitment to integrating environmental responsibility with long-term industrial growth.
Meanwhile, NMDC, India's largest iron ore producer, has put its planned foray into nickel on hold partly because of global oversupply concerns in Indonesia, which accounts for more than 60 percent of global output of the metal, as reported by Reuters. India classified nickel as a critical mineral in 2023 and is in the process of finalising a policy to roll out incentives to process the metal used by both stainless steel makers and electric vehicle battery manufacturers.
NMDC said last year it was exploring acquisition opportunities for critical minerals in Africa, Australia and South America, as part of its global mineral diversification strategy, according to Reuters. The company has been evaluating overseas coking coal assets for some time, with its chairman previously stating the miner was exploring opportunities in Australia and Indonesia. India's state-owned Steel Authority of India (SAIL) and NMDC were also looking at boosting nickel supplies from Russia and acquiring coking coal assets.
