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NMDC gets LoI for Bailadila iron ore mine in Chhattisgarh

2021-07-08

A joint venture of the National Mineral Development Corporation (NMDC) and the Chhattisgarh Mineral Development Corporation Limited (CMDC) has received a letter of intent (LoI) from the Mineral Resource Department, Government of Chhattisgarh for Bailadila iron ore mine, deposit-4, South Bastar, Dantewada district.

NMDC-CMDC is a joint venture wherein NMDC owns 51% stake and Chhattisgarh Mineral Development Corporation (CMDC) owns the 49% stake.

The LoI issued to the joint venture of NMDC is for iron ore mining across 646.596 hectares in the Dantewada forest division, Chhattisgarh.

Bailadila iron ore deposit-4 is located north of deposit-5 on the western side of the Bailadila range of hills, lying at a distance of about l35 km towards the Jagdalpur southwest. It is a large and homogeneous iron ore deposit having an onsite reserve of about 107 mt with an average grade of iron of 65.39%.

On September 30, 2019, the Ministry of Mines, Government of India gave its prior approval for the reservation of Bailadila iron ore deposit-4 in favour of NMDC-CMDC for prospecting and mining of iron ore.

Shares of NMDC dropped 3.22% to end at Rs 169.65 on the Bombay stock exchange (BSE) today after the Government of India launched an offer for sale (OFS) to sell up to 21.95 crore shares representing a 7.49% company stake. As of 31 March 2021, the GoI held a 68.29% stake in NMDC.

Presently NMDC is producing about 35 mt of iron ore from three fully-mechanised mines -- two located in Chhattisgarh and one in Karnataka.

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