The state-owned mining company NMDC Ltd announced on Monday the commissioning of an integrated iron ore processing project, slurry pipeline, and pellet plant worth 5427 crore rupees in the state of Chhattisgarh. This move allows the company to expand its involvement across the entire iron ore value chain.
The Ministry of Steel stated in a press release that the project includes a new iron ore processing plant in Bacheli, a slurry pipeline with a capacity of 15 million tonnes per annum (MTPA), and a pellet plant with a capacity of 2 MTPA in Nargunar.
The 135 km slurry pipeline will transport concentrated processed iron ore from Bacheli to Nargunar, offering an alternative to road transport. It passes through 61 villages in the Bastar and Dantewada districts and will reduce NMDC's reliance on rail transport for moving processed ore.
The new facilities will enable NMDC to process fine fractions and slag from its mines in Bailadila into concentrate, which will then be converted into pellets. The pellet plant uses Straight Grate Induration technology to produce pellets intended for steel production.
The launch of this project expands NMDC's presence at all stages of the iron ore value chain: from mining and beneficiation to slurry transportation and pellet production. Furthermore, it will allow the company to utilize fine fractions and slag obtained at the Bailadila plants more efficiently and add a new value-added product to its portfolio.
NMDC Chairman and Managing Director Amitava Mukherji called the launch a 'celebratory day' for the company, noting that the project implementation was not easy and involved processing capacities, the slurry pipeline itself, and the pellet plant.
This project is part of NMDC's broader strategy for expansion and diversification, as the company is working towards increasing its iron ore production capacity to 100 million tonnes in the long term.