Diversification plan: NMDC is looking for mining assets on four continents

A large dump truck from the quarry. Loading stone into a dump truck. Loading coal into a truck. Mining car mining machinery, to transport coal from open pit as coal. Production of useful minerals | Photo credit: Getty Images/iStockphoto

From South America in the west to Australia in the east, state-owned iron ore giant NMDC is exploring mining assets, including critical minerals, on four continents to meet the future needs of industries such as automotive, renewable energy, electronics and steel, according to industry sources.

NMDC, which supplies a quarter of India’s iron ore demand, has set a target of earning at least 20% of its revenue from the sale of minerals other than key raw materials for steelmaking.

Industry sources said the PSU is exploring lithium, copper, cobalt and rare earth blocks in Chile (South America), Australia, Africa, Brazil and parts of Asia.

The company is also looking for limestone mines, dolomite, coking coal and tungsten blocks in the United Arab Emirates, Oman, Bhutan and Australia.

Acquiring these minerals will enable NMDC to cater to major industries in India on a growth trajectory such as steel, automotive, electronics, renewable energy, aerospace and defence, railway and metro, etc., sources said.

When asked for a comment, NMDC said, “Right now we are a 99.9% iron ore company. Our aim is to help the growing industry in the country with maximum need for minerals.”

In an earlier interview with PTI, NMDC Chairman Amitava Mukherjee confirmed that the company is working on diversification strategies by selling additional minerals. NMDC aims to be India’s largest mining company and earn at least 20% of revenue from minerals other than iron ore, he said.

NMDC’s expansion is directly in line with government initiatives aimed at ensuring long-term supply of raw materials and reducing import dependence across economic sectors.

In the steel sector alone, raw materials account for around 65-70% of the cost of steel production, according to the Steel Ministry’s draft Steel Policy Vision 2047, which aims to reduce import dependence through domestic mining, washing expansion, asset acquisition, long-term supply agreements and AI-based optimization of coal mixes.

The draft policy states that India’s aim to increase the share of manufacturing in the economy, supported by initiatives such as Make in India, Production Linked Incentive (PLI) Scheme, semiconductor manufacturing, defense indigenization and development of industrial corridors, is expected to significantly expand steel consumption in sectors such as automotive, engineering goods, capital goods, engineering, shipbuilding, renewable energy equipment and defense manufacturing.

Published – 25 Oct 2026 12:20 PM IST