HYDERABAD: State-run National Mineral Development Corporation’s (NMDC) said Naxal and Maoists’ attacks are affecting and delaying its Rs 607-crore Bailadila expansion project in Chhattisgarh.
Originally, it was slated to be commissioned by March 2014. But in March, with naxals burning the downhill conveyor of 11B deposit over a length of 500 meters, which was scheduled to take trial run in May, it is now likely to start operations only by the end of the current fiscal.
“...Naxal activities have seriously hindered the progress of the project work,” NMDC said adding the major risk the company was facing was the threat of Maoists’ attacks on and around Bailadila project on and off.
“Such attacks have made some impact on production, which has affected the movement of ore from the Bailadila sector. The company is in contact with the government agencies for support and protection of its people with installations,” NMDC said in its annual report.
The Bailadila 11B deposit is to have a production capacity of 7 mtpa iron ore and is crucial for NMDC in its efforts to achieve 50 million tonnes per annum (mtpa) capacity by 2018-19.
The initiatives taken by the Chhattisgarh government and the Central government are expected to address the risk at the earliest, NMDC said.
NMDC has been operating four mines in Bailadila sector of Dantewada district and cumulatively, they produced 5.7 mt iron ore in first quarter out of its total 7.8 mt production during the April-June period of the current fiscal. It has also applied for seven prospecting licences in Dantewada district and is pursuing them with the Chhattisgarh government.
The country’s largest iron ore miner is also building a slurry pipeline for transportation of pellets from Bailadila to Vizag via Jagdalpur with provision of partial off-take at Nagarnar, the location for its proposed three million tonnes per annum steel plant in Chhattisgarh.