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National Mineral Development Corporation

24 Jan 2026 GS 3 Economy
National Mineral Development Corporation Click to view full image

Background and institutional profile

  • Incorporated in 1958 as a Government of India public enterprise.

  • Known as National Mineral Development Corporation.

  • Functions under the administrative control of the Ministry of Steel.

  • India’s largest producer and exporter of iron ore.

  • NMDC was conferred the Navratna status in 2011 by Department of Public Enterprise, Government of India.

  • The Sixth Largest Iron Ore Producer in The World

Core mining operations

  • Produces over 45 million tonnes of iron ore annually.

  • Iron ore is produced from three mechanised mines located in:

    • Chhattisgarh: Bailadila (Kirandul and Bacheli complexes, Dantewada district).

    • Karnataka: Donimalai mine (Bellary district; suspended in Dec 2019 due to royalty dispute).

  • Operates India’s only mechanised diamond mine at Majhgawan, Panna (Madhya Pradesh).

Mineral exploration and diversification (non-iron ore)

  • Actively explored minerals include:

    • Copper, rock phosphate, limestone, magnesite

    • Diamond, tungsten, tin, graphite

    • Gypsum, coal and beach sands

  • Diversification into low silica limestone for the steel industry.

Subsidiaries and joint ventures

  • J K Mineral Development Corporation Limited:

    • Dead burnt magnesite production and downstream value addition under study.

  • Silica sand project:

    • Taken over from Uttar Pradesh State Mineral Development Corporation Ltd.

    • Capacity: 300,000 tonnes per year of high-purity beneficiated silica sand.

    • End use: float/sheet glass manufacturing.

  • Beach sand joint venture:

    • Partners: NMDC, Indian Rare Earths Limited (IREL), Andhra Pradesh Mineral Development Corporation.

    • Location: Bheemunipatnam Beach.

    • Outputs: ilmenite concentrate, synthetic rutile, TiO₂ slag/pigment; pig iron as by-product.

Strategic diversification: coal mining

  • Tokisud North Coal Mine, Hazaribagh district, Jharkhand.

  • Coal mining commenced on 23 January 2026 (PIB Delhi).

  • Marks NMDC’s formal entry into coal mining.

  • Strategic significance:

    • Strengthens domestic coal availability.

    • Supports power sector and energy security.

    • Expands NMDC’s footprint in eastern India.

Prelims Practice MCQs

Q. With reference to NMDC Limited, consider the following statements:

  1. It was incorporated in the late 1950s as a Government of India enterprise.

  2. It functions under the administrative control of the Ministry of Mines.

  3. It is India’s largest producer of iron ore.

Which of the statements given above are correct?
(a) 1 and 3 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (a)

Explanation:

  • Statement 1 is correct (1958 incorporation).

  • Statement 2 is incorrect: NMDC is under the Ministry of Steel, not Mines.

  • Statement 3 is correct.

Q. NMDC operates iron ore mines in which of the following States?

  1. Chhattisgarh

  2. Odisha

  3. Karnataka

Select the correct answer using the code below:
(a) 1 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (b)

Explanation:

  • Operational mechanised iron ore mines are in Chhattisgarh and Karnataka.

  • Odisha is not mentioned in the provided content.

Q. Consider the following statements about NMDC’s diamond mining:

  1. NMDC operates the only mechanised diamond mine in India.

  2. The mine is located in Chhattisgarh.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: (a)

Explanation:

  • Statement 1 is correct.

  • Statement 2 is incorrect: the mine is at Panna, Madhya Pradesh.



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