NMDC Ltd Management Discussions

[ANNEXURE-I]

Management Discussion & Analysis : FY 2024-25

1. NMDC: An Overview

1.1 Introduction

NMDC Limited, established in November 1958, plays a pivotal role in the Indian mining and minerals sector. As a ‘Navratna public sector enterprise under the Ministry of Steel, NMDC is renowned for its significant profitability. The company produces high-quality iron ore with a premium grade of 64% Fe and maintains a strong financial position, enabling significant investment capacity. With over six decades of experience, NMDC has successfully navigated challenging terrains and difficult market conditions and is continuously expanding its global reach. Strategically located near key demand centers, NMDC operates with one of the lowest cash costs (C1) in the industry, making it highly competitive against global counterparts in the iron ore business.

NMDC is the largest iron ore producer in India, consistently demonstrating remarkable performance with an annual production exceeding 43 million tonnes over the past three years. After attaining the significant milestone of 45.02 MT production during 2023-24 surpassing the 45 million tonne mark for the first time, NMDC produced 44.07 million tonnes of iron ore during FY 2025. This year, NMDC also resumed operations at its Panna Diamond Project in Madhya Pradesh after a halt of more than three years, demonstrating the resilience and commitment of its stakeholders to achieve growth. NMDCs Tokisud North & Rohne coal block in Jharkhand is anticipated to begin production during the financial year 2026, marking another historic first for NMDC as it ventures into domestic coal mining.

NMDC has set ambitious targets to cross 50.0 million tonnes iron ore production with a target of 55.4 MT in FY 2026 & with the ultimate goal of reaching 100 million tonnes by 2030. This endeavor will involve substantial capital investments to expand and enhance the companys mining capabilities and infrastructure. Additionally, the company plans to diversify into minerals other than iron ore, which are essential for the energy security and net-zero ambitions of the country.

NMDC is dedicated to optimizing its operations and innovating processes to enhance efficiency throughout the organization. The company is continuously working to digitalize its processes, which improves the functioning and management of its activities. Furthermore, NMDC regularly reviews its operational strategies to increase productivity, reduce waste, and improve overall performance, ensuring it remains competitive and efficient in its sector. In FY25, NMDC has recorded a revenue of Rs. 23668 crores, with a rise of 11% over last year. NMDC recorded a Profit (before tax) of Rs. 9296 crores in FY25 and a net worth of Rs. 29579 crores (as of 31st March 2025). NMDC has a strong history of rewarding investors with an average dividend payment of around 793% (on Face value of Rs. 1 per share) in the last 5 years, which is the testimony to consistently creating value for its stakeholders.

Looking ahead, NMDC remains committed to creating long-term value for all its stakeholders. Beyond financial returns, NMDC places a high priority on the socio-economic development of communities surrounding its mining operations. These efforts highlight NMDCs dedication as a responsible corporate entity, emphasizing inclusive growth and sustainable development.

1.2 Operating Projects

NMDC operates three highly-mechanized iron ore mine complexes in the states of Chhattisgarh and Karnataka. Two of the complexes are located in Dantewada (Chhattisgarh), namely Kirandul Complex and Bacheli Complex, that produce around 37 MTPA. The third complex in Bellary (Karnataka), namely, Donimalai Iron Ore Complex produces 14 MTPA (from the two pits- Kumaraswamy & Donimalai). NMDC also has a 1.2 MTPA pellet plant at Donimalai.

NMDC also operates the Diamond Mining Project, Panna (M.P.), which is the only mechanized diamond mine in Asia.

1.3 Global Presence

Legacy Iron Ore Limited, Perth, Australia

Legacy Iron Ore Ltd (Legacy) is an ASX-listed mineral resources company based in Perth, Western Australia, focusing on gold, iron ore and base metals. NMDC has 92.84% equity in the company. Legacy holds 25 prospective tenements across its Mount Bevan, South Laverton, and East Kimberley project areas in Western Australia. The tenements are in various stages of exploration for a host of commodities, including iron (1), gold (20), base metals and tungsten (4).

The Mount Bevan Project in Western Australia is of strategic importance to Legacy. It endows a significant magnetite Mineral Resource of 1.29 billion tonnes at 33.5% Fe (JORC Inferred & Indicated). The project has been the focus of considerable investment, with approximately 21,000 meters of reverse circulation (RC) and 3,000 meters of core drilling for iron ore (hematite and magnetite) and nickel exploration.

Legacy signed a Joint Venture (JV) Magnetite Agreement with Hancock Prospecting Pvt Ltd (Hancock) to complete a pre-feasibility study (PFS). Under this arrangement,

Hancock has invested and undertaken the developmental works in Mount Bevan Project. Post PFS Legacy has a 29.4% interest in the asset. Post completion of PFS Hawthorn has opted for royalty and accordingly the shareholding of Legacy in Mt. Bevan JV is 36.57% and of Hancock is 63.43%.

Additionally, to further underpin the future potential and strategic importance of the Mount Bevan tenement, Legacy signed a joint venture agreement for lithium and other minerals with Hancock in June 2023. The Agreement formalizes terms for Hancock to earn-in to all non-iron minerals, focusing on the exploration and development of lithium and other critical minerals. Currently, Legacy has a 55.5% interest in the asset.

The South Laverton Project includes Mount Celia, Yilgangi, Yerilla and Patricia North gold assets. Mining Lease for Mount Celia Gold Project has been granted by the Western Australian Department of Mining Industry Regulation and Safety (DMIRS) in the first half of 2023. Mount Celia has a declared JORC-compliant Mineral Resource of 312,600 ounces at 1.39g/t Au supported by 30,173 meters of RC drilling and 1,150 meters of core drilling.

Legacy has commenced Gold mining operations in Mt. Celia Gold Project on 5th November, 2023 and first sale of ore has been done in March 2024. Legacy has entered into an Ore Purchase Agreement (OPA) with Paddington Gold Pty Ltd. The ore is being hauled to the Paddington processing, with payment initiated on the first delivery of each ore parcel. The average grade and recovery are being determined from grade determination activities (GDA) undertaken by independent drilling contractors and analytical laboratories. The life of a mine for the first phase of mining is approximately 14 months. Resource definition drilling is planned to increase confidence in the Inferred mineral resource and extend the life of the Mt. Celia Gold Operation mine.

The Yilgangi and Patricia North tenements are in the early to mid-stage of exploration maturity. Yilgangi has a Mineral Resource of 10,000 ounces but can potentially develop as a satellite gold deposit for Mount Celias operation.

The East Kimberley Project is 350 kms south of Kunnunura, Western Australia. It includes Koongie Park, Sophie Downs, Ruby Plains and Taylor Lookout tenements, known to host prospective geology for base metals, gold, rare earth elements (REE) and tungsten mineralization. The East Kimberley tenements are in the early stages of exploration, with first- pass drilling for base metal exploration completed.

International Coal Ventures Pvt. Ltd. (ICVL)

ICVL, a joint venture company of SAIL, RINL, NMDC, CIL & NMDC, acquired a coking/thermal coal mine in Mozambique in 2014 and operation of the same was taken over by ICVL. NMDC holds 25.94% stake in ICVL. Benga mine, one of the operational asset of ICVL, has produced about 0.67 million tonne of Coal (0.53 million tonne of Coking Coal + 0.14 million tonne of Thermal Coal) in FY 2024-25 and exported 1.12 million tonnes of Coal (0.62 million tonnes of Coking Coal + 0.50 million tonnes of Thermal Coal).

1.4 Growth Plan

• NMDC has made a comprehensive strategic management plan to enhance its iron ore production capacity to 67 MTPA by FY-25 and further to 100 MTPA by FY-30 to meet the growing requirements of iron ore in the Indian Steel sector. The strategy focuses on growth largely through brownfield expansion of existing mines and improving the evacuation infrastructure.

• NMDC also envisages expanding through the development of Deposit-13 & Deposit-4 (greenfield projects), under a Joint Venture company of NMDC Limited and Chhattisgarh Mineral Development Corporation (NCL).

• In FY25, the Company has progressed significantly on various activities to enhance its production capacity completion of various projects and significant progress in other ongoing projects. Rapid Wagon Loading System (RWLS-I) at Kirandul Complex has been completed and Screening Plant (SP-III) at BIOM Kirandul Complex has progressed well in construction activities.

• Further, NMDC is planning to enhance the EC capacities of mines in the mining complexes of Bailadila and Donimalai. Further to the demerger of NMDC Steel Limited, NSL plant has been commissioned and started production during the previous Financial Year.

• To augment the evacuation capacity from the Bailadila sector, many projects & schemes are being taken up like doubling of KK line, Rowghat-Jagdalpur line, Slurry Pipeline, etc. Doubling of KK line is being executed by Railways as deposit work is in full swing and few completed sections have been opened for traffic. Out of 150 km of planned doubling of railway line, 92% of work has already been completed & the project is likely to be completed by Dec. 2025. The completion of this project will augment the evacuation capacity of the Bailadila sector through the Railway line from 28 MTPA to 40 MTPA.

• NMDC is in the process of setting up a slurry pipeline, along with an associated beneficiation plant & pellet plant, in phases, for economical transportation of iron ore to locations from where the pellets/ore can be supplied to the industry.

• Activities for Phase-1 of Slurry Pipe Line including 2 MTPA capacity Ore Processing Plant (OPP) at Bacheli, 15 MTPA capacity Slurry Pipeline System (130 km) from Bacheli to Nagarnar and 2 MTPA capacity Pellet Plant at Nagarnar, are under progress. The first phase of project is likely to be completed in FY26.

• Ministry of Coal has allocated two Coal Blocks namely Tokisud North Coal block & Rohne Coal Block on 17th March 2020 for commercial sale & captive purposes. NMDC has appointed MDO for Tokisud North Coal Block and plans to start its operations in FY26. Various activities like land acquisition etc. are under progress.

• NMDC has developed an intermediate iron ore stockyard at Kumar Marenga in Chhattisgarh for uninterrupted supplies to customers. This stockyard became operational in FY23.

• NMDC is pursuing the allocation of new iron ore deposits both through participation in auction and reservation through government dispensation route

(section 17A(2A) of the revised MMDR Act, 2015) for further expansion in capacity.

• As part of the thrust to tap renewable energy sources, NMDC installed wind energy of about 10.5 MW at Chitradurga, Karnataka State and a 1.5 MW rooftop power plants in various production units.

• To achieve ‘Net Zero by 2040, NMDC requires to plan for renewable energy project of 100 MW. As a step forward, Pre-Feasibility studies of the solar projects on vacant land available at SIU Paloncha (150 MW solar power plant in 150 acres) and at DBM Panthal (20 MW solar power plant in 60 acres) are being taken up.

• Based on the Pre-Feasibility study Reports, NMDC will take appropriate action to install 70 MW solar power plants by 2030 and achieve the "Net Zero" by 2040.

1.5 Exploration & Reserve Estimation:

• NMDC has a dedicated exploration wing at Raipur, fully equipped to undertake the exploration of minerals. NMDC has conducted more than 10,000 meters of core drilling in FY25 at existing mines. Besides, it has also established a well-equipped Centre for Geostatistics and has a Remote sensing lab at Corporate Office, Hyderabad. NMDC has full-fledged mine planning wings at Corporate office as well as at project sites for orebody modelling, reserve estimation, pit design & scheduling, with advanced software like Surpac, Whittle & Minesched.

1.6 Research & Development:

NMDC operates a state-of-the-art Research & Development (R&D) Centre at Hyderabad, which has been declared as a "Centre of Excellence" by the United Nations Industrial Development Organisation (UNIDO). NMDC R&D centre is dedicated to undertake product and technology development projects related to ores, minerals and steel making to maintain its excellence in process performance. R&D centre has made significant contribution not only to NMDC operating projects but also to Indian industries and is recognized by Department of Scientific and Industrial Research (DSIR). The R&D Centre undertakes different projects to mitigate the operational challenges of different units of NMDC and provide solutions in terms of improvement in the system or change in technology, to achieve a continual enhancement in its processes & operations. The Centre provides solutions to external agencies as well. R&D centre undertakes works related to mineral processing, flow sheet development, mineralogical studies, material handling & storage, metallurgical studies of iron ore and coal, chemical analysis etc. It is a pioneer in the field of beneficiation and continuously working for development of dry beneficiation technology for different ores and minerals. It is endowed with state of art laboratory equipment to analyze different minerals, coals, metals and non-metals. NMDC holds 21 patents for its innovations at R&D centre. NMDC innovation and incubation centre (NICE) launched with i-TIC foundation, IIT, Hyderabad and running successfully for last six years.

2. Industry Structure & Developments Market Environment

2.1 Economy:

2.1.1Global

Global growth in 2024 remained steady but underwhelming, continuing the pattern of subdued growth observed in recent years. IMF projects that this sluggish pace is likely to persist. With the abrupt escalation of trade tensions, most notably the sweeping US tariffs announced on April 2, 2025, followed by swift retaliatory measures from major trading partners. These actions have pushed global tariff levels to their highest in a century, injecting a wave of uncertainty across markets and clouding the near-term outlook.

This represents a major negative shock to growth. As a result, global growth projections have been downgraded to 2.8% for 2025 and 3.0% for 2026, compared to earlier estimates of 3.3% for both years. Meanwhile, global headline inflation is expected to decline from 6.8% in 2023 to 4.3% in 2025 and 3.6% in 20261.

2.1.2India

Amid global economic uncertainty, India continues to play a leading role in global growth, supported by robust macroeconomic fundamentals and careful policy management. In FY 2024-25, Indias real GDP growth is estimated at 6.5%, with the Reserve Bank of India expecting the pace to continue into FY 2025-263. Strong domestic demand is driving sustained growth, with rising rural and urban consumption, increasing private investment, and capacity expansion by businesses. Public infrastructure spending remains high, supported by stable borrowing conditions.

Inflation in India has eased sharply, with average CPI inflation for FY 2024-25 at ~4.6%4, marking the lowest full year financial rate since FY 2018-19. Food prices, which have a big impact on overall inflation have seen downtrend trend and are expected to stay stable due to robust crop production. The Reserve Bank aims for a medium-term inflation target of ~4%. Indias strong external sector, marked by rising foreign exchange reserves, a manageable current account balance, and steady foreign investment inflows, positions the country well to navigate global uncertainties.

India remains a leading destination for global investment, supported by a liberal and business-friendly FDI framework. The country permits 100% foreign ownership in most sectors through the automatic route, encouraging investor confidence. As a result, foreign direct investment (FDI) inflows reached USD 81.04 billion in FY 2024–25—an increase of 14% from USD 71.28 billion in the previous fiscal year5.

Indias export performance continues to highlight the resilience and expansion of its economy, particularly in high-value manufacturing and services. The country has consistently broadened its presence in global trade. This progress is driven by improved industrial capabilities, rising service-sector competitiveness, and the emergence of strategic industries such as defence manufacturing and electronics. In FY 2024–25, total exports climbed to a record USD 824.9 billion, registering a 6.01% rise from USD 778.1 billion in FY 2023–24—and significantly higher than the USD 466.22 billion recorded in FY 2013–14, underscoring a decade of strong export growth6.

The Union Budget 2025–26 introduced a "National Manufacturing Mission" to strengthen the Make in India initiative by focusing on five key pillars: improving the ease and cost of doing business, developing a future-ready workforce aligned with emerging job demands, fostering a dynamic MSME ecosystem, promoting access to advanced technologies, and ensuring high-quality production standards.

India continues to be the worlds fastest-growing major economy and is well-positioned to sustain this momentum. This resilience stems from its sound macroeconomic fundamentals, a stable and robust financial system, and a strong commitment to sustainable and inclusive growth—despite facing global challenges such as financial market volatility, geopolitical tensions, trade disruptions, supply chain vulnerabilities, and climate-related risks.

2.2 Iron Ore Industry Outlook

2.2.1 Global: Steel & Iron Ore

Total world crude steel production stood at ~1,885 MT in 2024, showing a decline of ~1% from 1,904 MT in 20237. Major producers such as China, Japan, the US, Russia, and South Korea have all witnessed declines, while India stood out by registering growth. The decline in the top global producer, China, is driven by weaker domestic demand amid slowing infrastructure investment due to strict debt control policy, rising energy costs, and intensified environmental regulations to curb carbon emissions.

Indias crude steel production rose owing to the continuous focus of the government on the infrastructure sector and a continued expansion of the steelmaking capacity.

Japans crude steel production declined due to construction delays caused by labour shortages and high material costs as well as a sluggish recovery in production within the automobile and other manufacturing sectors. Further, an oversupply in overseas markets driven by Chinas massive steel exports contributed to reduced Japanese steel exports. The US raised import duties on steel to 25% from March which could further reduce Japans annual crude steel output by several million tonnes.

The US is also witnessing decline due to lower demand and an oversupply from steel imports due to weak global prices. Russias output declined due to falling global prices, reduced domestic demand caused by high key interest rates, and a stronger ruble. South Koreas domestic steel sector has weakened due to an oversupply of low-priced Chinese steel products.

Global per capita finished steel consumption stood at ~215 kg in 2024, declining from ~221 kg in 20238. India, unlike the major steel producers, witnessed growth in its per capita steel consumption, rising from 93 kg in 2023 to ~103 kg in 20249 owing to rapid growth in demand.

Following the crude steel production trend, global iron ore production has also declined, going from 2,530 MT in 2023 to 2,500 MT in 2024, marking a drop of 1.2%10. Major producing countries such as Australia (from 953 MT in 2023 to 930 MT in 2024, a 2.5% drop), Brazil (from 445 MT in 2023 to 440 MT in 2024, a 1.1% drop), and China (from 278 MT in 2023 to 270 MT in 2024, a 3% drop) saw declines.

A slow growth in global steel demand is expected till 2030 at CAGR of ~0.7% from 2025-203011. In long term, global iron ore demand is expected to hold steady. While Chinese steel demand and iron ore consumption are expected to continue declining steadily, returning to 2007 levels by 205012, the rest of the world is expected to post steady annual growth on average. Emerging markets such as India and the Association of Southeast Asian Nations (ASEAN) region are expected to register strong demand growth, led by growing expenditure on infrastructure investment and housing. Developed markets in Europe, North America (Canada, Mexico, and the United States) and Asia are expected to experience modest growth. The average price for 62% Fe CFR China is projected at USD 99 per tonne in 202513, with prices trending lower in the long term (at USD 75 per tonne by 2050) due to ample iron ore supply and moderation in Chinese demand. Steel decarbonization poses a downside risk on iron ore demand for blast furnace steelmaking. However, by 2035, global iron ore market is expected to see a growing shift towards high grade iron ore owing to DRI production growth between 2035 and 2050.

Country	Crude Steel Production 2024 (MT)	Crude Steel Production 2023 (MT)
China	1005	1029
India	149	141
Japan	84	87
United States	80	81
Russia	71	76
South Korea	64	67
Germany	37	35
Turkiye	37	34
Brazil	34	32
Iran	31	31
Others	293	292
World Total	1885	1904

2.2.2 India: Steel & Iron Ore

Indias crude steel capacity surged by ~10% to 205 MT in FY25, up from 186 MT in FY2414. Crude steel production in FY25 reached ~152 MT15, a ~5% increase compared to 144 MT in FY2416. The growth in crude steel production has been slower than previous financial year (14% y-o-y in FY 24). The share of BF-BOF and EAF route in Indias crude steel production has been on decline while the IF route is witnessing growth. The BF-BOF and EAF routes accounted for 44% and 26% in FY 2017, which have now come down to 41% and 21% in FY 2518 respectively. Conversely, IF route share increased from 30% to 38% during the same period.

Indias finished steel consumption witnessed growth of ~10% from ~136 MT in FY 24 to ~149 MT in FY 2519. With imports of ~10 MT and exports of ~5MT finished steel in FY 2520, India continues to be a net importer of finished steel. Imports grew by ~15% while exports declined by ~35% year-over-year in FY 2521. To protect the domestic steel players amid surge in steel imports, the government imposed a 12% safeguard duty22 in April 2025 with the aim of restoring stability and competitiveness in the domestic steel industry.

Indias iron ore production reached 289 MT in FY2523 against the previous years 277 MT in FY24, growing in line with the increased demand from the steel sector. The rise in production can be attributed to the commissioning of auctioned greenfield blocks and the expansion of existing mines.

Iron ore fines and pellet exports dropped 36% y-o-y in FY25, mainly due to weak demand from China, which accounts for more than 80% of Indian iron ore exports. On the other hand, iron ore imports have risen to 6.5 million tonnes in FY25, up from 5.3 million tonnes in FY24. If the trend of declining exports and rising imports continues, India could potentially become a net importer of iron ore—especially with plans to add over 100 million tonnes of steelmaking capacity by 2030 and domestic supply struggling to keep pace with growing demand.

India aims to reach 300 million tonnes of crude steel capacity by 2030 and 500 million tonnes by 204724, driven by consumption across end-user sectors and supported by government expenditure and urbanization. Along with the rapid expansion, the government aims for decarbonization of Indian steel sector. Initiatives such as the release of Taxonomy for green steel and report on ‘Greening the Steel Sector in India: Roadmap and Action Plan provide a roadmap towards net-zero target by 2070. Ministry of Steel is also preparing ‘Green Steel Mission with an estimated cost of Rs. 15,000 Crores for reducing carbon emissions from the steel industry. India has emerged as the strongest driver of steel demand growth globally since 2021, and the trend is set to continue in 2025 as well, with a robust growth of more than 8% in steel demand25.

3. NMDC – Opportunities & Threats a) Opportunities i) Envisaged growth in domestic steel production on account of the factors mentioned below would lead to higher demand for Iron Ore in the country:

• The construction and infrastructure sectors account for more than 60 percent of the overall steel consumption. The infrastructure development activities by the Government of India to drive the growth of the construction, automotive, consumer durables sectors etc. are expected to boost the iron and steel sector demand in India.

• Indias low per capita steel consumption and ample scope of urbanization, rural steel consumption is expected to play a pivotal role in the Indian steel industrys growth. Multiple key initiatives by the government along with a host of consumption enablers are expected to drive up the steel demand in key end-use sectors of the rural economy (food processing and storage, agriculture and farming, dairy and animal husbandry, and rural infrastructure development). Government initiatives for Self-Reliant India creating new avenues to set-up new industries is leading to demand in iron and steel.

• Numerous foreign companies are setting up their facilities in India on account of various Government initiatives like Make in India and Digital India.

• The government envisages bringing Indias GDP to US$ 5 trillion by FY28 and achieve upper-middle income status on the back of digitization, globalization, favourable demographics, and reforms that will create demand for steel in the domestic market.

• Increase in demand for high-grade ore worldwide considering environmental concerns. NMDCs iron ore is one of the best grades of ore in the world.

• Continuous thrust by the government to use domestically manufactured iron and steel products in government procurement.

• Further capacity addition by steel players in near future.

ii) IMF projections of 6.2% GDP growth in 2025,

Production Linked Incentive scheme for specialty steel sector expected to attract additional investment of Rs. 40,000 Cr, PM Gati Shakti–National Master Plan for multi-modal connectivity to reduce the logistic costs- All are expected to drive the steel demand vis-?-vis iron ore demand in future.

iii) Provisions under MMDR Act with various amendments such as grant/extension of mining lease for the government companies on the payment of additional revenue, transfer of statutory clearances valid till the expiry of ML will give NMDC competitive advantage over others.

iv) Development of National Mineral Index could help in further driving the profitability and investments in metal mining sector.

b) Threats i) Rising inflation can impact consumption and lead to fiscal tightening increasing the cost of borrowings affecting investments. ii) Intensification of geopolitical tension in Europe can disrupt the whole market dynamics.

iii) Uncertainty in export duties of iron ore, pellets can lead to volatility in the prices of iron ore, further leading to reduced iron ore demand.

iv) Demand for Iron ore may fall in the international market in long term due to the decline in the Chinese steel production, and shift towards EAF/IF route for recycling scrap steel.

v) New iron ore leases being auctioned and the recent amendments to MMDR Act allowing sale of 50% of the iron ore production of captive mines in open market may lead to increase in supply of iron ore and increase the competition in the market.

vi) Backward integration by Steelmakers into iron ore mining after the start of auctioned mines will affect the demand from the customers of the Company.

vii) Indian iron ore industry will continue to be uncompetitive on a global level due to higher rates of royalty and other levies such as DMF, NMET, Export duty etc. as well as significantly higher logistics costs.

viii) Increasing regulatory pressure on environment, health & safety and sustainability.

ix) Disturbances due to Maoist activities in Bailadila region from where the majority of NMDCs production comes. At the same time, the location of Bailadila has a logistic disadvantage.

NMDCs business would continue to be affected by developments impacting the demand-supply scenario & price fluctuations of iron ore in both the global and domestic markets.

4. Segment-wise or Product-wise performance

4.1 Physical Performance of NMDC

Details	2020-21	2021-22	2022-23	2023-24	2024-25
Production:
Production of Iron Ore WMT (In lakh tonnes)	341.50	421.88	408.17	450.22	440.72
Production of Sponge Iron (tonnes)*	NIL	NIL	NIL	NIL	NIL
Production of Diamonds (carats)	13,681.01	NIL	NIL	295.61	4602.03
Production Pellets (tonnes) Domestic	83,751	1,82,299	2,02,330	2,63,053	1,70,605
Pellets through Job Work (tones)	-	-	-	-	5,91,901
Sales:
Sale of Iron Ore (in lakh tonnes)	332.52	406.68	382.23	444.81	444.04
Sale of Diamonds (carats)	22,248.84	25,218.95	NIL	NIL	NIL
Sale of Sponge Iron (tonnes) Sale of Pellets (tones)	NIL	NIL	NIL	NIL	NIL
Domestic	92,774	1,96,972	1,88,988	2,40,126	2,15,511
Export	-	-	-	-	4,80,308

4.2 Financial Performance of NMDC

(Rs. Cr.)

Details	2020-21	2021-22	2022-23	2023-24	2024-25
Sale of Iron Ore	15,233.70	25,629.72	17,447.39	21,049.47	22,803.40
Sale of Diamonds	21.10	62.93	NIL	NIL	NIL
Sale of Wind Power	5.17	4.99	6.08	6.25	6.46
Sale of Sponge Iron	NIL	NIL	NIL	NIL	NIL
Sales- Pellet (Domestic)	73.50	222.11	165.50	232.40	206.55
Sales- Pellet (Export)	-	-	-	-	448.19
Sales HR Coil	-	-	-	-	198.98
Sales - Others	36.59	45.04	47.91	5.69	4.74
Turnover	15,370.06	25,964.79	17,666.88	21,293.81	23,668.32
EBITDA	9,146.27	13,348.36	8,047.25	8,427.27	9,846.86
PBT	8,901.63	13,022.45	7,636.61	8,011.98	9,296.43
PAT	6,253.05	9,447.59	5,528.63	5,631.89	6,692.60
Dividend	2,274.15	4,319.72	1,934.21	2,124.70	2,901.30
Dividend as % of PAT	36%	46%	35%	38%	43%

5. Outlook for NMDC

NMDC proposes to augment its production capacity of iron ore to 100 MT by FY30. It has also embarked on value addition projects by setting up a 1.2 MTPA pellet plant utilizing slimes in Karnataka and a 3.0 MTPA integrated steel plant in Chhattisgarh (Now demerged as a separate legal entity as NMDC Steel Limited). The NSL has been commissioned during August 2023. NMDC-CMDC Limited (NCL), a JV company of NMDC Limited & CMDC Limited, will also start production from Dep-13 through MDO in the near future. Dep-4 has been also allocated to NCL, which will add further value to NMDC production & profit numbers. NMDC has also developed an intermediate stockpile at Kumar Marenga near Jagdalpur to ensure an uninterrupted supply of ore to the customers. To augment evacuation capacity, NMDC is supporting on doubling of K-K line (Kirandul- Kotvatsala), Rowghat-Jagdalpur line, Slurry Pipeline, etc. Legacy iron ore Limited, Perth Australia which is a subsidiary of NMDC has started Gold mining at Mt. Celia during FY 2024.

To diversify further its business, NMDC is planning to start one of the Coal Mine, namely Tokisud North, Jharkhand in FY26. NMDC will also start actions to operationalize the other allocated Coal Block, Rohne, very soon.

NMDC has procured its Diversification & International Expansion Strategy to venture into various identified minerals & geographies & will continue to look for opportunistic assets based on the recommendation & strategy in the formulated report.

NMDC is committed to focusing on maintaining cost competitiveness in the global and domestic markets in a scenario where prices are expected to remain subdued. Further, NMDC is taking various initiatives towards automation & digitization of its operation to further improve its cost competitiveness.

Along with robust strategic planning to support its growth agenda, NMDC continues to enhance organizational capabilities and other enablers to achieve its short-term and long-term objectives.

6. Risks and Concerns

NMDC is exposed to sharp fluctuations in demand for its products and volatility in prices. Falling prices of iron ore, especially in international market will support the import by the steel players & exert pressure on domestic supply & prices.

Introduction of Auction rule has increased risks for NMDC as its major customers have acquired captive mines in mineral-rich states, mainly JSW & AM-NS. Both JSW & AMNS have already started production from newly acquired mines & planned to increase it further in the near future. New tranches of auction are likely to add further capacity of iron ore to steel players as well as other merchant players in near future. This is likely to adversely impact the market for NMDC over the medium to long term.

One of the major risks that NMDC is facing is the disturbances due to Maoist activities in Bailadila region. The Company is in contact with the Government agencies at all levels for support and protection of its employees and installations.

Although NMDC is entering into Coal Mining, the opening of the Coal sector for Commercial mining will increase the competition for NMDC in the short to medium term.

Timely enhancement of evacuation capacity in line with production plans also remains a potential risk. This could impact production and inventory levels for NMDC.

7. Internal control systems and their adequacy

Necessary disclosure in respect of Internal Control Systems and their adequacy has been made in Annexure- B to the Independent Auditors Report dated 27th May, 2025 which forms part of the Annual Report.

8. Discussion on financial performance with respect to operational performance

During the year under review, the Companys revenue from operations increased by 11% from Rs. 21294 crores to

H 23668 crores mainly on account of:

• Realization was higher by 9% during this period from Rs. 4732/- per ton to Rs. 5135/- per ton.

• Other factors include Export of Pellet and Sale of HR Coil.

Details on financial performance with respect to operational performance are given in detail in the Directors Report.

9. Material developments in Human Resources/ Industrial Relations front, including number of people employed.

The human capital of NMDC has been its key driving factor and its greatest asset. The company has made concerted efforts in keeping the workforce highly engaged and motivated.

On one hand, continuous improvement is made to improve the quality of life at the townships with investments in parks, community halls, up-gradation/construction of new quarters, clubs, gymnasium, facilities for different sports such as tennis, badminton, table-tennis, cricket, etc. NMDC has also taken revisions in various welfare measures & advance from time to time. It also focuses on various types of insurances beneficial to the employees.

During Covid time, NMDC has taken various initiative to give the health & safety of the employees utmost priority. Apart from supporting the employees in various sanitization & health measures, Ex-Gratia of Rs. 15 Lakhs for deceased employees family has been also started, which is over and above the existing facility of payment of last Basic + DA every month for family of deceased employees. Various additional facilities for families of deceased employees have also been extended.

Training and skill up-gradation forms an important area where assessment is first made to understand employee needs and concerns and then, appropriate training programmes are organized throughout the year. Even during Covid time, NMDC continued its training programs through Web-based learning initiatives. NMDC has further associated with reputed institutes like IIM, IIT and ISB for imparting training.

NMDC has also started happiness building initiative by imparting specific training in line with IKIGAI, on happy workplace. As a result of the all-round measures being taken by the company, attrition from NMDC has been marginal, despite remote locations of the NMDC mines.

It is worth highlighting that industrial relations have been cordial all along during the year. Any difference is sorted out through bipartite discussions at appropriate fora. The cooperation and support of workmen represented by All India NMDC Workers Federation (AINMDCWF) in this regard are praiseworthy.

Keeping in view the various diversification projects like Pellet Plant etc., & expansion of existing projects, the company has taken initiative to train its existing manpower and also to go for fresh induction.

Further, a total of 217 posts were filled through direct recruitment in FY2024-25. All were provided on-the-job and off-the-job training in order to prepare them for taking up the challenges of working in NMDCs production projects, as well as any new venture that Company may like to take up. The further recruitment process is in progress for upcoming projects.

During the last five years, the number of people on rolls as on 31st March is as follows:

10. Details of significant changes in Key Financial Ratios:

Details of significant changes (i.e. changes in 25% or more as compared to the immediately previous financial year in key financial ratios)

1) Trade payable Turnover ratio: 24.87 (PY 8.78)

Increase in purchase by 138% over the previous year mainly on account of Trading Business.

11. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof (For Standalone Basis)

	2024-25	2023-24	(% of Change)
Net Worth (H In crore)	29,579	25,406	(+) 16.4%
PAT (H in crore)	6693	5,632	(+) 18.8%
Return on Net Worth	22.63(%)	22.17(%)

The Company has declared 1st Interim Dividend for FY 2024-25 @ Rs. 2.30 per share in the month of March 2025 and Final Dividend for FY 2024-25 @ Rs. 1.00 per share in the month of Mary 2025.

Amount outgo towards 1st interim Dividend is Rs. 2022.12 crores. The share of Government with equity stake of 60.79 % is Rs. 879.18 crores.

12. Sustainability

NMDC is publishing Sustainability Report as per the Global Reporting Initiative (GRI) Standards, capturing initiatives taken by NMDC over the years in Economic, Environmental and Social aspects. As the world is now traversing more uncertainty than ever, NMDC is focusing on building sustainable and resilient businesses to survive in the long run and to make a meaningful contribution to the battle against climate change through an increasing investing environment, social and governance (ESG) initiatives.

12.1 Environment:

• The environmental monitoring studies are conducted through recognized laboratories of MoEFCC/ CPCB, covering all environmental parameters. Based on the results of environmental monitoring studies, it is concluded that all environmental parameters are well within the limits during FY 23-24. A total of 6 nos Continuous Ambient Air Quality Monitoring Stations (CAAQMS) has been installed at Bacheli project (2 nos), Kirandul project (2 nos) and Donimalai Project (2 nos) for recording of Ambient air quality parameters such as PM10, PM2.5, SO2, NOx and CO in real time. 2 nos of CAAQMS were installed at Kumaraswamy Iron Ore Mines during June23.

• Every year Carbon Footprint studies are being conducted for disclosure of Greenhouse Gas Emissions under Carbon Disclosure Project (CDP). Water Audit is conducted at regular intervals at all projects of NMDC and recommendations of audit are being implemented to conserve water and to improve the efficiency of motors / pumps, arrest leakages, etc. Apart from this regular maintenance of water appurtenances is being done.

• Sustainable Mining Initiative audit is being done at all Iron Ore Mining projects of NMDC and recommendations are being implemented.

• The R&R works suggested by M/s Indian Council of Forest Research and Education (ICFRE, Dehradun) in the Environmental Management and Reclamation & Rehabilitation Plan for Kirandul Complex, Chhattisgarh and in Donimalai Complex, Karnataka are under implementation stage. The R&R plan for Bacheli complex is under final stage of submission and the reclamation measures suggested by ICFRE will be implemented.

• R&D works in the field of air, water, solid waste etc. were undertaken by engaging institutes of repute such as ISM Dhanbad, NIT – Raipur and VNIT – Nagpur.

• The environmental pollution control works are undertaken such as de-silting of check dams / check bunds, tailing dams, construction of buttress walls at toe of waste dumps and geo-coir matting for stabilization of waste rock dumps.

• About 96 nos wells are being monitored for water quality and water levels covering all 4-seasons in a year at iron ore projects. Studies are revealed that there has been an increasing trend in the ground water level due to hydraulic loading by the existing check dams and check bunds. Limited usage of ground water and continuous recharge helped in the process.

• NMDC has set-up Sewage Treatment Plant (STP) with advanced treatment technology (Sequential Batch Reactor) at Bacheli (2 MLD) and Donimalai (3 MLD) township for treatment of domestic waste water. STP works are in progress at Kirandul (3 MLD) and the treated water will be reused for green belt development.

• About 3 million saplings were planted in and around NMDC projects covering an area of 2300 Ha. NMDC is also actively contributing funds to Government of Chhattisgarh flagship programme "Hariyar Chhattisgarh" for undertaking block plantation in the state of C.G. by CGRVVN Limited.

12.2 Health & Safety

• Health & Safety continue to be our priority with employees & contractual workmen at our projects adhering to the SOPs & safety norms. NMDC appreciate that safety is a journey & is committed to continually improve its performance and set high standards.

• NMDC has its training centres in all its projects. They are equipped with infrastructure as required under Mines Vocational Training Rules. These centres cater to the needs of basic training, refresher training and training for skilled workers and also for those injured on duty.

• Health & Safety continue to be our priority with employees & contractual workmen at our Projects adhering to the SOPs & Safety norms. NMDC appreciate that safety is a journey & is committed to continually improve its performance and set high standards.

• In each mining project of NMDC sufficient number of Workmen Inspectors are nominated/appointed for Mining operations, Mechanical and Electrical installations as per statutory requirements for carrying safety inspections.

• Mine Level Tripartite Safety Committee Meetings have been conducted in each of the operating mines. This meeting is conducted once in a year at project level with senior officials, Union Representatives and DGMS Officials in which Safety Performance and its appraisal are made and the recommendations are implemented.

• Corporate Level Tripartite Safety Committee Meetings are being held regularly once in a year at Head Office and the recommendations are implemented.

• Safety Committees have been constituted in every operating mine and pit safety meetings are held every month discussing the safety matters and corrective actions related to work atmosphere.

• In order to ensure that safety systems are up to date & also comply with the latest safety regulations, a cross-project internal safety audit has been started in NMDC.

• Safety Management system has been implemented in all our mines. Risk Assessment studies are being conducted regularly.

• NMDC provides extensive safety training programmes to inculcate safety habits & mindset at work to its employees. Behavioural based safety trainings are also given to the employees.

• The Severity Rate for the year 2024-25 is 19.18 and Injury frequency rate is 0.15.

(Severity Rate = Man-days lost per 100000 Man-days worked).

OHS Activities:

Occupational Health Services have been provided with adequate manpower and infrastructure and are functioning in full-fledged manner at all the projects, headed by Qualified Doctors trained in OHS at Central Labour Institute, Mumbai.

Periodical Medical Examination under statute is carried out regularly in all the projects.

NMDC strives to ensure that workers are not exposed to occupational hazards that negatively affect their health. NMDC also has well equipped hospitals with capable medical teams available 24/7 to support the health & wellbeing of the workers & the surrounding community.

12.3 Corporate Social Responsibility

• CSR is raison d?tre of NMDC and not just a part of business strategy. NMDCs CSR Programmes are carried out in areas which are remote, backward and face serious law and order problems due to left-wing extremism. The area is among the most backward regions of India and inhabited predominantly by Scheduled Tribes and Scheduled caste population who are poor, underprivileged, deprived, suffer malnutrition and devoid of support for their socio-economic needs. It is only because of its strong focus on social responsibility Programmes aiming at enhancing the quality of life of the local communities that NMDC has been successfully mining in these areas.

• NMDC is the model PSE in the field of CSR and its model of stakeholder consultation mechanism for implementation of its CSR has been recommended by Department of Public Enterprises, Government of India for emulation by all other CPSEs.

• The Company is investing substantially in promoting education, development of physical infrastructure, providing healthcare services & clean drinking water along with imparting technical skill sets aimed at enhancing employability & income generation etc. among other initiatives primarily in surrounding areas of its operations.

Detailed disclosure on CSR forms part of the Annual Report.