Posted on 14 Aug 2025
India’s largest merchant iron ore miner, NMDC, warns in its recently released 2024-25 annual report that security threats in Chhattisgarh’s Bailadila region and intensifying competition from captive steelmaker mines could undermine its market position, Kallanish notes.
The state-run firm says Maoist activity (by armed rebels) remains a serious operational risk at Bailadila, which produces most of its ore. The location also suffers from logistical disadvantages, the miner adds.
NMDC is also concerned about India’s iron ore trade balance. The company’s fines and pellet exports fell 36% year-on-year in fiscal year 2025, mainly due to weak Chinese demand. Imports rose to 6.5 million tonnes from 5.3mt a year earlier.
“If these trends continue, India could become a net importer of iron ore,” NMDC says. China still accounts for more than 80% of India’s ore exports, but its shift to electric arc furnaces is reducing seaborne demand.
The miner faces growing domestic competition after auctions enabled major customers, such as JSW Steel and ArcelorMittal Nippon Steel India, to secure captive mines. Both are ramping up production, with further capacity likely from upcoming auctions.
NMDC is diversifying into coal and critical minerals. It plans to commission the Tokisud North coal block in Jharkhand in FY26 and is exploring Odisha’s Kansa nickel block, which is also prospective for cobalt.
Source:Kallanish
