NMDC to launch thermal coal production, targets 1 MT sales by FY27

State-owned NMDC is set to diversify its mining portfolio with the launch of thermal coal production, marking a significant shift for a company that has long dominated India's iron ore sector. Chairman Amitava Mukherjee said the company has reached the coal seam at its Tokisud North coal mine and production will commence in the October-December quarter, with commercial sales targeted at 1 million tonnes by the end of FY27.

Currently operating as a predominantly iron ore producer, NMDC supplies approximately 20 per cent of India's iron ore requirements, a critical raw material for steel production. The company, which falls under the Ministry of Steel and is headquartered in Hyderabad, has outlined an expansion strategy aimed at supporting New Delhi's development agenda through 2030.

"Right now, we are 99.9 per cent an iron ore company. We aim to help the growing industries in the country with maximum of their mineral needs," Mukherjee said in comments to the Press Trust of India. The diversification into thermal coal aligns with the government's broader vision of achieving a developed India while ensuring domestic industries have access to critical mineral resources.

The move comes as India seeks to ramp up domestic coal production to meet rising energy demands while reducing dependence on imports. NMDC's entry into the thermal coal market is expected to strengthen the country's mineral security and support domestic power generation capacity.