New Delhi: NMDC Limited, India’s largest government-owned iron ore producer, has signed a strategic Memorandum of Understanding (MoU) with Steel Exchange India Limited (SEIL) for the long-term supply of iron ore to support the company’s integrated steel operations.
The MoU establishes a commercial and operational framework for the supply of consistent-grade Iron Ore Fines with Fe 61–63% and above from NMDC’s upcoming Buffer Stockpile & Blending Yard at Visakhapatnam, Andhra Pradesh.
The agreement has an initial term of four years and is expected to strengthen SEIL’s raw material security while providing NMDC with a reliable offtake arrangement from its upcoming Visakhapatnam facility.
NMDC Visakhapatnam Hub to Improve Raw Material Supply
The upcoming NMDC Buffer Stockpile & Blending Yard at Visakhapatnam is expected to strengthen SEIL’s long-term raw material supply chain. Its proximity to SEIL’s production facilities in Vizianagaram can help the company improve logistics efficiency, reduce transportation costs and ensure faster delivery of iron ore.
The availability of consistent-grade iron ore is also expected to support SEIL’s integrated steel operations and improve the utilisation of its rolling mills.
MoU Supports Steel Exchange India’s Expansion Plans
The partnership comes after Steel Exchange India recorded its highest-ever monthly Re-Bar production of 24,823.509 MT following the commissioning of its new Reheating Furnace.
SEIL said that securing consistent-grade iron ore from NMDC’s Visakhapatnam Buffer Hub will strengthen its raw material pipeline and support its expansion plans.
The partnership is expected to help SEIL:
- Strengthen its raw material supply chain
- Optimise input logistics
- Improve cost efficiency
- Support higher utilisation of rolling mills
- Expand its long steel product business
SEIL operates an integrated steel plant and power unit near Visakhapatnam and is also expanding into specialty steels under the Production Linked Incentive (PLI) scheme.
Strategic Importance of NMDC and SEIL Partnership
The MoU strengthens the relationship between NMDC and Steel Exchange India by connecting NMDC’s iron ore supply capabilities with SEIL’s growing steel production requirements.
For SEIL, the agreement will provide greater visibility over long-term iron ore availability and strengthen its backward integration strategy. The nearby location of NMDC’s Visakhapatnam facility is also expected to improve supply-chain efficiency.
For NMDC, the partnership will provide a reliable offtake arrangement from its upcoming Visakhapatnam facility and support the development of its regional supply network.
SEIL Records Highest-Ever Monthly Re-Bar Production
Steel Exchange India recently achieved its highest-ever monthly Re-Bar production of 24,823.509 MT.
The record production was supported by the operationalisation of its new Reheating Furnace. The company expects the NMDC partnership to provide stronger raw material support as it expands its steel manufacturing operations.
The availability of iron ore from a nearby source is expected to help SEIL manage input logistics more efficiently and support the growth of its SIMHADRI TMT brand.
Key Highlights of the NMDC-SEIL MoU
- Four-year framework: The MoU will serve as the basis for upcoming Long-Term Agreements (LTAs).
- Consistent-grade iron ore: SEIL will source Iron Ore Fines with Fe 61–63% and above.
- Strategic location: NMDC’s upcoming Visakhapatnam facility is located close to SEIL’s plant in Vizianagaram.
- Multiple supply options: Supply can be arranged through conveyor, FOB, FOR, FOT or Ex-Stockpile modes.
- Logistics advantage: The proximity of the supply source is expected to reduce freight costs and improve delivery efficiency.
- Support for capacity growth: The agreement will support SEIL’s expanding steel production capabilities.
About NMDC Limited
NMDC Limited is a Navratna public sector enterprise under the Ministry of Steel, Government of India, and the country’s leading iron ore producer. The company operates major mechanised mining complexes in Chhattisgarh and Karnataka and is expanding its mineral portfolio while focusing on increasing production capacity, operational efficiency and sustainable mining practices.
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