Hyderabad: The National Mineral Development Corporation (NMDC) has decided to provide technical and financial assistance to Neelachal Ispat Nigam Limited (NINL) for resumption of their mining operations in Odisha.
Under the aegis of the Ministry of Steel, Ministry of Commerce and DIPAM, the NINL had approached the NMDC, the largest iron ore producer of India, for support. To boost the mining of high grade iron ore in the state, NMDC signed an MoU with NINL to provide assistance.
The NINL started the operation of iron ore mines in Mithirda mine block on Friday. The inaugural function was attended by Sumit Deb, CMD NMDC; PK Satpathy, Director (Production) NMDC; RK Jha, MD NINL and senior officials of NMDC and NINL.
Speaking on the occasion, Deb said, “Iron ore mining by NINL will not only ease ore scarcity in the state but also go a long way in eliminating the financial constraints faced by the company. NMDC extends full support to the NINL team in the new endeavour.”
The NINL, a joint venture company of MMTC, IPICOL, OMC, NMDC and others, has set up a 1.1-MTPA integrated steel plant at Dubri in Jajpur district. The company acquired the mining lease for captive production of iron ore in January 2017. It has received permission for merchant sale of iron ore of one million tonne per year for two years to augment the iron ore production in the state and meet the expenses of the company.
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