NMDC Earmarks ₹755 Crore for Donimalai Expansion, Targets 17 MT Iron Ore Output in FY27 – Indian PSU
State-owned mining giant NMDC Limited has earmarked ₹755 crore for a major capacity expansion programme at its Donimalai Iron Ore Complex in Karnataka, marking the company’s highest-ever annual investment in the state and a 25% increase over the previous year’s expenditure.
The investment is aimed at increasing iron ore production capacity at Donimalai by 8.8% to 17 million tonnes (MT) in FY27. The complex produced 15.63 million tonnes of iron ore in FY26 from NMDC’s two mining leases in Karnataka.
Company sources said NMDC is currently awaiting environmental clearance for enhanced production from its Karnataka operations. Once approvals are secured, the expansion is expected to significantly strengthen the company’s contribution to domestic steelmakers.
The Donimalai expansion is a key component of NMDC’s long-term strategy to scale up its iron ore production capacity to 100 million tonnes per annum (MTPA) by 2030. For FY27, the company has set an ambitious production target of 60 million tonnes, up from over 53 million tonnes achieved in FY26.
To support this growth trajectory, NMDC has planned a capital expenditure of ₹6,000 crore in FY27, nearly double the ₹3,300 crore spent in FY26.
Under the Karnataka expansion programme, NMDC will deploy additional heavy earth-moving machinery, establish a new screening plant, and develop a conveyor system to facilitate efficient transportation of ore from the mine to the processing facility.
According to sources, nearly half of the iron ore produced at Donimalai is supplied to JSW Steel’s integrated steel plant at Toranagallu, while the remaining output is sold through e-auctions.
Beyond Karnataka, NMDC is also undertaking expansion projects at its Kirandul and Bacheli iron ore mines in Chhattisgarh to meet its long-term production goals.
For FY27, the company expects output of approximately:
- 21 million tonnes from Kirandul
- 20.8 million tonnes from Bacheli
- 17 million tonnes from Donimalai
- 1.5 million tonnes from NMDC-CMDC Limited
Together, these operations are expected to strengthen NMDC’s position as India’s largest iron ore producer and play a critical role in meeting the growing raw material requirements of the country’s steel sector.
“These expansion initiatives will help us meet rising domestic demand while maintaining our focus on operational efficiency, sustainability and long-term growth,” company sources said.
