State-owned mining major NMDC is exploring mining assets across four continents as part of its strategy to diversify beyond iron ore and secure supplies of critical minerals required by India’s expanding industrial sectors, according to industry sources.
The company, which meets around one-fourth of India’s iron ore demand, aims to generate at least 20% of its revenue from minerals other than iron ore, marking a significant shift in its business strategy to address the country’s evolving raw material requirements.
According to industry sources, NMDC is scouting for lithium, copper, cobalt and rare earth mineral blocks in Chile, Australia, Africa, Brazil and parts of Asia. The company is also exploring opportunities in limestone, dolomite, coking coal and tungsten in the UAE, Oman, Bhutan and Australia.
Diversification to Support Strategic Industries
The proposed acquisitions and investments are intended to strengthen NMDC’s mineral portfolio and support industries witnessing sustained growth, including steel, automotive, electronics, renewable energy, aerospace, defence, railways and metro infrastructure.
Commenting on the company’s diversification strategy, NMDC said, “Right now, we are a 99.9 per cent iron ore company. We aim to help the growing industries in the country with the maximum of their mineral needs.”
NMDC Chairman Amitava Mukherjee had earlier confirmed in an interview with PTI that the company was developing strategies to expand into other minerals. The broader objective is to establish NMDC as India’s largest mineral mining company while deriving at least one-fifth of its revenue from non-iron ore minerals.
Strengthening India’s Mineral Security
NMDC’s expansion plans align with the government’s efforts to secure long-term supplies of essential raw materials, strengthen domestic manufacturing and reduce dependence on imports. Access to critical minerals such as lithium, cobalt, copper and rare earth elements is increasingly important for electric vehicles, battery storage, renewable energy systems, electronics and advanced manufacturing.
The strategy also complements initiatives such as Make in India, the Production Linked Incentive (PLI) Scheme, semiconductor manufacturing, defence indigenisation and the development of industrial corridors, all of which are expected to increase demand for a range of industrial minerals and metals.
Steel Sector’s Raw Material Requirements
The steel industry remains a key consideration in India’s mineral security strategy. According to the Ministry of Steel’s draft Steel Policy Vision 2047, raw materials account for approximately 65–70% of steelmaking costs.
The draft policy emphasises reducing import dependence through domestic mining, expansion of coal washeries, overseas asset acquisitions, long-term supply arrangements and artificial intelligence-based optimisation of coal blends.
It also projects growing steel consumption across automotive, engineering goods, capital goods, machinery, shipbuilding, renewable energy equipment and defence manufacturing as India expands its manufacturing base.
By broadening its mineral portfolio and pursuing opportunities in overseas mining assets, NMDC aims to position itself to meet these emerging requirements while reducing its dependence on iron ore revenues. The diversification drive could also play a role in strengthening India’s long-term access to strategic minerals and supporting the country’s industrial and energy transition.