India’s state-owned NMDC has commissioned an integrated iron ore processing and pellet production project in Chhattisgarh, strengthening its operations beyond mining and into higher-value raw materials for steelmaking. The project represents an investment of Rs 5,427 crore and links NMDC’s Bacheli iron ore operations with Nagarnar.

The facilities comprise an iron ore processing plant at Bacheli, a 15 million tons per year slurry pipeline system and a 2 million tons per year pellet plant at Nagarnar. A 135-km pipeline will transport iron ore concentrate between the two locations, providing an alternative to road transportation and reducing reliance on rail logistics.

The new facilities will also allow fines and slimes from NMDC’s Bailadila mines to be processed into concentrate and subsequently converted into pellets for steel production.

The project forms part of NMDC’s longer-term expansion strategy as the company seeks to increase its iron ore production capacity to 100 million tons. The addition of pellet production also broadens NMDC’s position in the iron ore supply chain by enabling greater utilization of material generated from its existing mining operations.