Latest news with #NMDC
Mint
3 days ago
- Business
- Mint
India plans to offer grants, ease regulatory norms for rare earth processing amid China supply woes
New Delhi: India plans to introduce a range of measures including the provision of grants to private companies to boost the processing of rare earth elements as the country copes with supply constraints from China, two people with knowledge of the development said. The measures include grants—or viability gap funding (VGF)—easing of the regulatory framework and fast-tracking auctions of rare-earth mines and acquisitions to counter the curbs imposed by China on sales of rare earth magnets and minerals, they said. "The government aims to achieve a 10% share of global rare earth processing within the country in the coming years. VGF, incentives for refining and regulatory easing are part of the broader strategy to achieve that target," one person said. The Indian government and industry are exploring ways to reduce reliance on China for these elements that go into several electronic components, particularly motors that drive electric vehicles. China imposed restrictions on its global export of rare earth minerals and magnets in April amid the trade and tariff war between the US and other nations. VGF provides financial support to infrastructure projects developed under public-private partnerships that may not be commercially viable. As much as 40% of the total project cost is provided—a maximum of 20% each by the Central and state government. The amount to be provided as grants for rare earth processing is being assessed, the people said. Companies that could benefit from these grants include NMDC, Coal India, Gujarat Mineral Development Corporation, Orissa Minerals Development Company, Hindustan Zinc, Vedanta and MOIL, formerly Manganese Ore (India), an industry executive said on condition of anonymity. Also Read | Automakers urge Indian govt for diplomatic outreach to China for rare earths Another person said that policy measures for rare earth elements (REE) would be taken under the Nation Critical Mineral Mission that the Union Cabinet approved in January. However, given the urgency of the situation, measures beyond the targets of the mission may be taken up. The government is already working on an incentive scheme for recycling critical minerals including rare earth elements, with an estimated allocation of ₹1,500 crore. According to the mines ministry, this is in the final stages of approval, after which it will go to the Union Cabinet. Pivotal role Rare earths are a collection of 17 elements—scandium, yttrium and 15 lanthanides, which are: lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium (Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb) and lutetium (Lu). India imports most of its rare earth requirements. Imports rose 16.7% to 2,270 tonnes in FY24. These elements play a pivotal role in hi-tech industries, automobiles, renewable energy transition, defence systems as well as the electronics sector. 'India's imports of permanent magnets—many containing rare earth elements—nearly doubled to 53,700 tonnes in FY25 from around 28,700 tonnes the year before, according to official trade data. There is no domestic magnet production. India relies on imported magnets, mainly from China," said Rajib Maitra, a partner at Deloitte India. Considering the importance of these elements, India has categorised rare earth elements (not containing uranium and thorium) as critical/strategic minerals. This allows the Centre to auction exploration licences and composite licences to mine these minerals in the country. Previously, mining of these critical and atomic minerals was reserved only for state agencies under the Department of Atomic Energy. Also Read | India's top rare-earths producer IREL is headless amid mounting supply risks from China As per the US Geological Survey, India has the third-largest reserves of rare earth elements, at about 6.9 million tonnes, after China (44 million tonnes) and Brazil (21 million tonnes). However, there is no significant production of rare earths in India because of the lack of exploration, mining and processing facilities. China accounted for 70% of the global production in 2024, according to the USGS. "Considering the huge reserves of REEs in the country, it has immense potential to raise mining of REEs," said BK Bhatia, director-general of the Federation of Indian Minerals Industries. Currently, IREL (India) Ltd (formerly Indian Rare Earths Ltd), a company under the Department of Atomic Energy, is the only agency involved in production of rare earths from beach sand minerals. The mining of beach sand minerals was earlier prohibited for the private sector. The other source of REEs are hard rocks. Earlier this year, the ministry of mines auctioned four blocks of REEs. However, of the four blocks, only one in Uttar Pradesh is exclusively for REE and the rest are largely associated with other critical minerals. Mission mode Industry stakeholders said it is imperative to have a facilitating regulatory regime to attract the private sector, including overseas companies, to explore, mine, extract and process rare earths because developing a deep-seated or critical mineral deposit from the stage of prospecting to mining takes a minimum of 8-10 years. "Extraction and processing capabilities of REEs is a big challenge. There is a need to work on the same in mission mode by bringing synergy among R&D institutes, academia and industry for developing domestic processing technology on a commercial scale to achieve the ambitious target of 10% global REEs in the country," Bhatia said. Processing, a key part of the rare earth supply chain, is again dominated by China with its technological advancements. 'Extracting rare earth elements is only one part of the value chain; processing them into usable materials is equally critical," said Rajnish Gupta, partner, tax and economic policy group, at EY India. 'While mining is becoming more diversified globally, processing remains concentrated in a few countries, creating supply chain vulnerabilities." Also Read | China's rare earths aren't as rare as you think Gupta noted that rare earth deposits have unique chemical compositions, requiring customised processing techniques and ongoing research. Further, extraction needs optimisation and the environmental impact needs to be addressed, while specialised equipment is required. "India would need to gain access to specialised technology or develop it over time. Manpower and infrastructure issues also need to be addressed. Planning should start right away. All constraints must be examined, and production and processing need to be synchronised," Gupta said. A domestic processing industry would also be key to process and refine minerals imported through the ventures of public sector Coal India Ltd and Khanij Bidesh India Ltd, which are scouting for critical minerals and rare earth mines abroad. "We need to scale up processing capabilities for rare earth elements rapidly, for which technology is already available. The processing capabilities can be developed independent of domestic mining capacity since there was removal of import duties from critical minerals recently," said Maitra of Deloitte India. Queries sent to the ministry of mines remained unanswered until publishing time.
Business Upturn
4 days ago
- Business
- Business Upturn
NMDC shares drop over 2% as Citi and Kotak reiterates ‘Sell' ratings
By Aman Shukla Published on June 16, 2025, 09:38 IST NMDC shares slipped over 2% in morning trade after leading brokerages Citi and Kotak Institutional Equities reiterated their 'Sell' calls, highlighting risks of further price correction in the domestic iron ore market. Citi has set a target price of ₹60, while Kotak has pegged it even lower at ₹55. Citi noted that NMDC's current price premium to export parity stands at over 40%, significantly above the FY25 average of 20%. With domestic steel prices declining and imports rising in May 2025 compared to April, the brokerage expects this premium to normalize. Adding to the pressure, Lloyds Metal and Energy plans to increase its iron ore capacity from 10 million tonnes to 25 million tonnes in FY26. Citi also flagged a modest global iron ore surplus, especially with Simandou volumes expected to enter the market in 2026. Kotak emphasized NMDC's recent 2.5% month-on-month price cut in June, and noted that domestic prices are now just 8% below import parity — well below the long-term average of 20%. The brokerage expects further cuts, citing weak steel prices and rising merchant mining output as additional downside risks. With concerns over domestic and global supply, and weakening pricing power, NMDC could face headwinds in the near term, both brokerages warned. NMDC shares opened at ₹70.20 and touched an intraday high of ₹70.24, while the low stood at ₹68.50. The stock continues to trade within its 52-week range, with a high of ₹91.87 and a low of ₹59.53. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Business Upturn
4 days ago
- Business
- Business Upturn
NMDC stock gets negative ratings by Citi and Kotak; pricing concerns weigh on outlook
By Markets Desk Published on June 16, 2025, 07:56 IST Citi and Kotak Institutional Equities have both reiterated 'Sell' ratings on NMDC, citing risks of further price corrections in the domestic iron ore market. Citi has set a target price of ₹60, while Kotak has pegged its target at ₹55. According to Citi, NMDC's current price premium to export parity stands at over 40%, compared to the FY25 average of 20%. The brokerage expects this premium to normalize, especially as domestic steel prices correct amid rising imports in May 2025, outpacing April volumes. Further, Llyods Metal and Energy's plan to ramp up its iron ore capacity from 10 million tonnes to 25 million tonnes in FY26 could also put pressure on prices. Global iron ore supply is expected to remain in modest surplus, especially with Simandou volumes entering the market next year, Citi warned. Kotak, meanwhile, highlighted NMDC's 2.5% month-on-month price cut in June, and believes more reductions could follow. It noted that domestic iron ore prices are now at just an 8% discount to import parity, compared to the historical 20%, signaling a possible price normalization phase. The ongoing weakness in steel prices and increase in merchant mining output further exacerbate the pressure on NMDC's pricing power, the brokerage added. Ahmedabad Plane Crash Markets Desk at
Business Standard
7 days ago
- Business
- Business Standard
Indices trade in negative terrain; metal shares decline for 3rd day
The key equity indices traded with major losses in the mid-afternoon trade, mirroring losses across Asian markets, after Israel carried out military strikes on Iran, intensifying tensions in the oil-rich Middle East. The Nifty traded below the 24,750 level. Metal shares declined for the third consecutive trading session. At 14:25 IST, the barometer index, the S&P BSE Sensex, declined 592.22 points or 0.72% to 81,100.94. The Nifty 50 index fell 175 points or 0.70% to 24,713.20. The broader market outperformed the frontline indices, the S&P BSE Mid-Cap index slipped 0.48% and the S&P BSE Small-Cap index dropped 0.45%. The market breadth was weak. On the BSE, 1,302 shares rose and 2,616 shares fell. A total of 150 shares were unchanged. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, soared 6.61% to 14.94. Economy: India's Consumer Price Index (CPI)-based inflation eased to 2.82% in May 2025, down 34 basis points from April's 3.16%, marking the lowest reading since February 2019. A key driver of the decline was food inflation, which dropped to 0.99%, the lowest since October 2021, significantly below both April's 1.78%. Buzzing Index: The Nifty Metal index fell 1.01% to 9,254.35. The index dropped 2.69% in the three consecutive trading sessions. NMDC (down 3.09%), Welspun Corp (down 1.96%), Jindal Steel & Power (down 1.84%), Jindal Stainless (down 1.66%), Adani Enterprises (down 1.46%), Hindalco Industries (down 1.08%), Hindustan Copper (down 0.76%), National Aluminium Company (down 0.75%), Steel Authority of India (down 0.66%) and JSW Steel (down 0.66%) tumbld. Numbers to Track: The yield on India's 10-year benchmark federal paper rose 0.43% to 6.310 from the previous close of 6.277. In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 86.0625 compared with its close of 85.5200 during the previous trading session. MCX Gold futures for 5 August 2025 settlement rose 1.65% to Rs 100,016. The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.36% to 98.22. The United States 10-year bond yield shed 0.21% to 4.347. In the commodities market, Brent crude for August 2025 settlement jumped $4.20 or 6.06% to $73.56 a barrel amid heightened geopolitical tensions Stocks in Spotlight: Kernex Microsystems (India) hit an upper limit of 5% after the company said it secured two contracts from Southern Railways in a joint venture with VRRC, under the KERNEX-VRRC consortium. Sigachi Industries added 2.49% after the firm informed that it has secured the Terms of Reference (ToR) approval from the State Environment Impact Assessment Authority (SEIAA), Andhra Pradesh.
Time of India
10-06-2025
- Business
- Time of India
Path to 100 MTPA: NMDC digs deep, strikes gold down under; project now builds critical mineral skills
Path to 100 MTPA: NMDC digs deep, strikes gold down under; project now builds critical mineral skills HYDERABAD: State-owned mining giant NMDC Ltd is actively pursuing the reservation of certain iron ore mines across India as part of its ambitious plan to achieve its target of 100 million tonnes per annum production capacity by 2030. The mining major has identified five key deposits for reservation: Malongtoli in Odisha, Bailadila Deposits 3 & 8 in Chhattisgarh, Ramandurg in Karnataka, Gadchiroli in Maharashtra, and Karampada in Jharkhand, NMDC chairman & managing director Amitabh Mukherjee told TOI. He said the company has approached various state govts requesting the reservation of strategic mining leases, citing its inability to compete in the current auction regime where premium bids often exceed 150% over and above royalties and various taxes, making such high premiums economically unviable for merchant miners like the company. For instance, he said the company has been talking to the Odisha govt for the Malongtoli deposit for over a decade and for Ramandurg for over seven to eight years. "We are definitely the best miners in the country in terms of EC (environmental clearance) capacity utilisation, carbon footprint, efficiency, and technology. We even exceed benchmark parameters set by global mining giants like Rio Tinto and Vale in several aspects," he said, pointing out that reserving these mines for NMDC would be in the larger national interest. To support its expansion plans, NMDC has already drawn up a substantial capital expenditure plan of Rs 65,000-70,000 crore over the next five years to meet its 100 MTPA target by 2030. Of this, projects worth around Rs 30,000 crore have already been sanctioned and are at various stages of scrutiny and tendering, while another Rs 13,000 crore projects are awaiting board approval and are expected to be sanctioned in the coming quarter. Additionally, projects worth Rs 25,000-30,000 crore are on the drawing board.
