NMDC eyes ambitious global expansion with focus on critical minerals

HYDERABAD: State-owned mining giant NMDC is evaluating 20-25 mining proposals across multiple countries as part of its aggressive international expansion strategy to diversify its portfolio into critical minerals.India’s largest iron ore miner ventured into gold mining in 2023 and is now scouting for prospects in critical minerals such as coking coal, lithium, copper and iron ore abroad. These are among the 10 key minerals, including nickel, manganese, nickel, dolomite, bauxite and cobalt, identified by NMDC as key focus area.“These proposals are in different stages of evaluation. We are looking at a couple of iron ore mines, a couple of coking coal mines, a few lithium mines, and one or two copper mines.

Most of these are in Africa, Australia, Indonesia, and Brazil,” NMDC Ltd chairman & managing director Amitabh Mukherjee told TOI.While refusing to divulge too many specifics citing NDAs (non-disclosure agreements), he said NMDC is particularly active in three to four African countries with an eye on establishing a strong presence in emerging mining jurisdictions. Pointing out that the proposals are at various stage of evaluation with some at desktop study stage, some at technical studies and others at the due diligence stage, he said NMDC has a rigorous evaluation process that typically takes five to six months for each proposal.

While Russia and North America remain potential future markets, he said NMDC is currently concentrating on opportunities in the Southern Hemisphere and emerging economies. This strategic expansion is expected to strengthen NMDC's position as a global mining player while securing critical mineral resources for India's industrial growth, he indicated.He said the push into critical minerals marks a significant diversification from NMDC's traditional iron ore focus, positioning the company to capitalise on the growing global demand for materials essential to renewable energy and electric vehicle technologies.On the impact of ongoing global geopolitical tensions and logistical challenges, he said NMDC maintains a long-term perspective on its acquisition strategy. Drawing parallels with NMDC's success in Bailadila, Chhattisgarh, which faced significant infrastructure and Naxalite challenges when operations began 60 years ago, he said the company is focused on evaluating assets based on their intrinsic quality rather than temporary external factors."Mining business is about creating long-term value. We must evaluate assets on their merit, not just on immediate political or logistical scenarios," Mukherjee said, adding that the approach aligns with NMDC's philosophy of building lasting assets that generate value across generations.