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NMDC looking to tap debt market for funds

The fund raising will depend approval of shareholders.

, ET Bureau|
Last Updated: Oct 07, 2019, 08.47 PM IST
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Mumbai: State-owned miner National Mineral Development Corporation (NMDC) may tap the debt market to raise funds and the company's board will be meeting on October 11 to consider the proposal, NMDC notified the stock exchange on Monday.

"...we are to inform you that a Meeting of the Board of Directors is fixed on Friday the 11th October, 2019, inter-alia, to consider the proposal for fund raising in one or more tranches Secured or Unsecured Non-convertible Debentures/Bonds on private placement basis...", NMDC said in a notification.

The fund raise will depend approval of shareholders.

NMDC, the country's largest iron ore miner has an annual production capacity of 43 million tonnes and is plans to expand it to 67 million tonne in the future to position itself to participate in the country's journey of producing 300 million tonne by 2030-31 , as is envisioned in the National Steel Policy. Iron ore is a key raw material that goes in the making of steel.

The company has itself forayed into steelmaking and is building a 3 million tonne integrated steel plant in Chhattisgarh. It has spent more than Rs 15,000 crore on the project up till now.

"This plant is now close to completion, with production expected during FY2021," NMDC had said in its annual note to shareholders.

The company spent Rs 2,090 crore in capex in the last financial year.

It is also looking at picking up a minor stake in a tungsten asset it has already shortlisted.

In a recent amendment to the mines and minerals act, the government paved the way for the state of Karnataka to renew its lease of mining at the 7 million tonne Donimalai mine which has to discontinue operations last year when the state government put conditions on its lease renewal that were not acceptable to NMDC.

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