NMDC Ltd has commissioned its 2 million tonne per annum pellet plant at Nagarnar in Chhattisgarh as part of a ₹5,427 crore integrated iron ore processing project. The project connects the company’s mining operations at Bacheli with its steel plant at Nagarnar through processing facilities, a slurry pipeline and pellet production.

The integrated project includes a new iron ore processing facility at Bacheli, a 15 million tonne per annum slurry pipeline and the 2 million tonne per annum pellet plant at Nagarnar. The 135 kilometre pipeline transports processed iron ore concentrate from Bacheli to Nagarnar, offering an alternative to road transportation.

The first production from the pellet plant was monitored from NMDC’s headquarters by Chairman and Managing Director Amitava Mukherjee and senior company officials. They could not travel to the project site because of adverse weather conditions.

The new facilities will allow NMDC to process iron ore fines and slimes from its Bailadila mines into concentrate and then convert the material into pellets for steelmaking. The pellet plant uses Straight Grate Induration technology for pellet production.

The commissioning expands NMDC’s operations across the iron ore value chain, covering mining, beneficiation, slurry transportation and pellet production. It also enables the company to make greater use of iron ore fines and slimes generated from its Bailadila operations while adding a value added product to its portfolio.

The project is part of NMDC’s wider expansion and diversification plans as the company targets an increase in long term iron ore production capacity to 100 million tonnes.

The slurry pipeline passes through 61 villages in Bastar and Dantewada districts. It is designed to reduce road movement of processed ore, provide an alternative evacuation route and lower dependence on rail transportation while creating a dedicated connection between Bacheli and Nagarnar.