Diversification plan: NMDC scouts for mining assets across four continents

NMDC is expanding from a mainly iron ore business into a broader mining company. It is searching for mining assets across four continents, from South America to Australia, including critical minerals and industrial minerals. The goal is to support industries whose demand is rising in India.

The company is examining lithium, copper, cobalt and rare earth blocks in Chile, Australia, Africa, Brazil and parts of Asia. It is also considering limestone, dolomite, coking coal and tungsten in the UAE, Oman, Bhutan and Australia. These acquisitions could give NMDC direct access to more raw materials.

This plan supports NMDC’s target of earning at least 20% of revenue from minerals other than iron ore. The company currently describes itself as 99.9% iron ore-based. Its expansion also matches government efforts to secure long-term supplies and reduce import dependence across steel, automobiles, electronics, renewable energy, defence and other sectors.

NMDC is considering a wide mix of minerals beyond iron ore. The list includes lithium, copper, cobalt and rare earths, as well as limestone, dolomite, coking coal and tungsten. The first group is described as critical minerals, while the others support important industrial processes and materials.

The article links these supplies to steel, automotive, electronics, renewable energy, aerospace, defence, railways and metros. For example, coking coal supports steelmaking, while limestone and dolomite are used in steel-related production. Based on established industrial knowledge, lithium and cobalt are important for batteries, copper for electrical systems, and rare earths for advanced equipment. The article does not assign every mineral to a specific product.

NMDC is exploring these resources in Chile, Australia, Africa, Brazil, parts of Asia, the UAE, Oman and Bhutan. Its purpose is to help India’s growing industries meet more of their mineral needs and reduce dependence on external supplies.

NMDC’s diversification target is clear: at least 20% of its revenue should come from minerals other than iron ore. This is a significant shift because the company says it is currently a 99.9% iron ore company. The plan would make its income less concentrated in one mineral.

NMDC is looking at critical minerals such as lithium, copper, cobalt and rare earths. It is also exploring limestone, dolomite, coking coal and tungsten. The company wants these resources to serve industries including steel, automobiles, electronics, renewable energy, aerospace and defence. Acquiring mining assets is one mechanism for building that wider portfolio.

The target is a stated ambition, not a reported achievement. NMDC Chairman Amitava Mukherjee said the company is developing strategies to sell other minerals and become India’s largest mineral mining company. Success would depend on finding suitable assets and developing supply links across several regions.

Lithium, cobalt and copper are important to modern energy and manufacturing systems. Lithium and cobalt are widely used in rechargeable batteries, while copper carries electricity in power networks, vehicles and electronics. Rare earths support specialised magnets and components used in advanced electronics and some defence and energy technologies. These specific uses come from established industrial knowledge; the article mainly identifies the industries involved.

Tungsten is valued in hard, heat-resistant industrial and defence applications. Coking coal is a key steelmaking input because it supports the process that converts iron-bearing material into steel. Limestone and dolomite, also under consideration, are relevant to steel production. Together, these minerals connect mining with batteries, machinery, power systems, transport and infrastructure.

India’s demand is expected to grow through automotive, renewable-energy, electronics, defence and manufacturing expansion. NMDC is therefore seeking overseas blocks in several regions. Securing supplies could support these sectors, but the article does not report any completed acquisitions.

If NMDC secures more overseas and domestic mineral supplies, Indian industries could gain a stronger source of raw materials. The company says it wants to meet more of the mineral needs of growing sectors. Those sectors include steel, automobiles, electronics, renewable energy, aerospace, defence, railways and metros.

The key mechanism would be control over mining assets and longer-term access to minerals. NMDC is exploring lithium, copper, cobalt, rare earths, limestone, dolomite, coking coal and tungsten. Such a broader portfolio could connect domestic manufacturers with supplies beyond iron ore. The article also links this strategy to reducing import dependence and securing long-term raw materials.

However, the article does not say that the assets have been acquired or quantify future savings. NMDC currently remains 99.9% an iron ore company. If its strategy succeeds, the company could contribute to a wider mineral base for India’s industrial expansion and government manufacturing initiatives.

Buying overseas mining assets is only one route to stronger mineral security. India can expand domestic mining, develop more coal washeries and arrange long-term supply agreements. These approaches can improve access to raw materials without requiring ownership of mines abroad.

The Ministry of Steel’s draft Steel Policy Vision 2047 lists domestic mining, washery expansion, asset acquisition, long-term supply arrangements and AI-based optimisation of coal blends. Together, these measures address both supply and efficient use. Domestic production can add local sources, while contracts can provide more predictable deliveries. Better coal blending can help steelmakers use available inputs more effectively.

The article places these options within a wider effort to reduce import dependence. It also connects manufacturing initiatives such as Make in India, the PLI Scheme, semiconductor production and defence indigenisation with rising steel demand. These measures could complement NMDC’s diversification rather than replace it.

Raw materials make up roughly 65–70% of steelmaking costs, according to the Ministry of Steel’s draft Steel Policy Vision 2047. The article does not break down that percentage, but it identifies raw-material access as a major cost issue. Iron ore and coking coal are central inputs for conventional steel production, while limestone and dolomite are also among NMDC’s targets.

The mechanism is straightforward: when key mineral supplies are secure and competitively priced, steel producers have a stronger cost base. When supplies are uncertain or imported, costs and vulnerability can rise. That is why the draft policy supports domestic mining, washery expansion, asset acquisition and long-term supply arrangements.

Steel connects mining to the wider economy because it is used in automotive, engineering goods, machinery, shipbuilding, renewable-energy equipment and defence production. The article says manufacturing initiatives are expected to expand steel consumption. Mineral policy therefore affects industrial growth, investment and import dependence.