‘Value addition will make us more relevant’

Having taken over as chairman and managing director of public sector iron ore mining company NMDC six months ago, N BAIJENDRA KUMAR tells B Dasarath Reddy that he seeks to redefine the role of the national miner in tune with the changed policy environment

The sale process of the three million-plant project in Ch hat tis ga rh hit a block after local sand the government opposed the move last year. What is the NMDC going to do?

The transaction and legal advisors for this purpose have raised certain issues. For instance, whether it is possible to privatise the lease held by a public sector company in a scheduled area. Based on this, the Inter Ministerial Group for Strategic Disinvestment has recommended the privatisation process be deferred for the time being. So, we have deferred it.

Execution of the Nagarnar project had got delayed by three-four years though it is getting completed. I have been trying to resolve all the issues on a war footing; my immediate priority is to complete the project. It will be completed and commissioned by the end of this year.

How did the company perform in FY18?

Despite disruption by heavy rains, floods and Maoist activities, we were able to achieve the highest production of 35.4 million tonnes (mt). Our people worked overtime to mitigate the impact. Our sales reached 36 mt during the year. Most of our mines in Bacheli, Kirandul (Chhattisgarh) and Donimalai (Karnataka) are rated first star, the maximum one can get, for all the parameters.

We also got permission to enhance production at the

Donimalai complex from the current 12 mt to 14 mt for 2018-19. With all clearances in place, we will soon be inviting tenders for construction of a slurry pipe from Bailadilla to Nagarnar to Visakhapatnam.

We have been contributing to the national kitty in whatever way possible and have already given an interim dividend of about ~9 billion. We could do this only because of our success in mining.

The company was not so successful in winning mining leases offered via the bidding route.

We were the kings of mining as long as mines were given to us on a nomination basis. With the change in policy, most mines are now being awarded through bidding. Our willingness to pursue the new route did not help us win the leases because we have been conservative in our approach. We will be aggressive now. the NMDC has got the knowledge, technical know-how, human resources and organisational structure that can sustain any pressure in the sector. We will try to put these to use.

Is NMDC planning to invest in new projects?

Besides mining, we have investment plans in value addition, be it steel plants, slurry pipes or pellet plants. Value addition is going to give more relevance to the NMDC, as captive mining is being aggressively pursued by the policy. If steel producers will acquire their own mines, the miner can also build a steel plant. Merchant mining is useful when there are purchasers. If purchasers are finding their own sources, I will conceive my own. The country needs 300 mt of steel a year so I can chip in anyway.

We already have land in Karnataka for a steel project and have been finalising the land for a similar project in Jharkhand, in association with JMDC.