The state-owned company NMDC, based in Hyderabad and under the Ministry of Steel, supplies 20 percent of the country's iron ore needs—a key raw material for steel production. NMDC Chairman Amitava Mukherji stated that the company will commence commercial thermal coal production between October and December and expects to sell about 1 million tons of this dry fuel during the 2027 fiscal year.
In an interview with PTI, Mukherji revealed that the company has developed a roadmap until 2030 to diversify its mining operations to support the government's Viksit Bharat vision. He noted that the company is currently 99.9 percent an iron ore mining company, and its goal is to assist the country's growing industries by meeting their mineral requirements.
The Chairman added that the company will start commercial thermal coal mining this year and aims to sell a maximum of 1 million tons of this commodity to potential buyers. He specified that they have reached the coal seam at the Tokisud North mine, and production will begin next quarter.
Furthermore, the company plans to start developing a coking coal mine during the 2027 fiscal year to begin extraction as early as the 2028 fiscal year. Mukherji emphasized that this year NMDC will offer coal in addition to iron ore, and potentially coking coal later on.
Thermal coal is used for electricity generation, while coking coal is another vital raw material for steelmaking. Previously, NMDC won an auction conducted by the Ministry of Coal for the Tokisud North mine, which holds reserves of 52 million tons, and the Raun coking coal block, with reserves of 191 million tons in Jharkhand.
Mukherji reported that the Tokisud North mine has a peak annual nominal capacity of 2.3 million tons (MT), and the Raun coking coal block has a capacity of 8 MT. Regarding the justification for business diversification, the chairman stated his intention to make NMDC India's largest mining company by continuing to seek opportunities to mine more minerals both in India and abroad.
Although the chairman did not disclose further details on the diversification plans, he mentioned that by 2030, his goal is for at least 20 percent of revenue to come from the sale of minerals other than iron ore. In the 2026 fiscal year, NMDC reported a 33 percent increase in total revenue to a record 31,554 crore rupees compared to 23,668 crore rupees in the 2025 fiscal year.
Concerning its iron ore mining business, he noted that the company is moving towards achieving the target of producing 100 million tons of iron ore by 2030. Mukherji shared that in the 2026 fiscal year, NMDC produced a record 53 million tons of iron ore versus 44 million tons in the 2025 fiscal year, representing a 20 percent year-on-year growth, and the company intends to maintain this trajectory.
NMDC operates four large, highly mechanized iron ore mining complexes in India, located in the states of Chhattisgarh (Bailadila sector) and Karnataka (Dominamalai sector).
