New Delhi: State-owned NMDC Limited is set to begin commercial production of thermal coal from its Tokisud North mine in Jharkhand during the October-December quarter of FY27, marking a significant step in the company’s strategy to diversify beyond its core iron ore business.
NMDC Chairman and Managing Director Amitava Mukherjee said the company aims to sell up to 1 million tonnes (MT) of thermal coal during FY27. The company has already reached the coal seam at Tokisud North and expects commercial production to begin in the next quarter.
Mukherjee said NMDC currently remains overwhelmingly dependent on iron ore but aims to expand its portfolio to meet a larger share of the mineral requirements of India’s growing industries.
Tokisud North Mine to Begin Commercial Coal Production
NMDC acquired the Tokisud North thermal coal mine through an auction conducted by the Ministry of Coal. The mine has estimated reserves of 52 MT and a peak-rated annual production capacity of 2.3 MT.
The company’s target of selling up to 1 MT of thermal coal in FY27 represents an initial ramp-up rather than full utilisation of the mine’s rated capacity.
Key details of the Tokisud North project include:
- Location: Jharkhand
- Mineral: Thermal coal
- Estimated reserves: 52 MT
- Peak annual production capacity: 2.3 MT
- FY27 sales target: Up to 1 MT
- Expected commercial production: October-December quarter of FY27
The mine was described as operationalised during FY26. However, the planned October-December start will mark the beginning of commercial production and sales.
The distinction is significant because mine opening, overburden removal and reaching the coal seam are preparatory stages before sustained commercial extraction begins.
NMDC has not yet disclosed the prospective buyers, expected coal grade, pricing mechanism or likely revenue contribution from Tokisud North during FY27.
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Rohne Coking Coal Block Development Planned in FY27
Alongside thermal coal production, NMDC plans to begin development of the Rohne coking coal block in Jharkhand during FY27, with production targeted as early as FY28.
The Rohne block was also secured through an auction conducted by the Ministry of Coal. It has estimated reserves of 191 MT and a peak-rated annual production capacity of 8 MT.
Coking coal is a critical raw material for blast-furnace-based steel production. India continues to rely significantly on imports to meet its domestic coking coal requirements.
According to Mukherjee, NMDC will have coal to offer alongside iron ore in the current financial year, while coking coal could be added to its product portfolio from the next fiscal year.
However, the proposed FY28 production timeline remains subject to:
- Mine development
- Regulatory approvals
- Infrastructure readiness
- Completion of preparatory work
- Timely execution of the project
NMDC Targets 20% Revenue from Non-Iron Ore Minerals by 2030
NMDC has prepared a diversification roadmap extending to 2030, with the objective of transforming itself from a predominantly iron ore producer into a broader mineral-mining company.
The company aims to generate at least 20% of its revenue from minerals other than iron ore by 2030.
To achieve this target, NMDC plans to examine opportunities to acquire and develop additional mineral assets in both India and overseas.
The company has not yet disclosed the other minerals being considered or the investment required for the broader diversification programme.
The Tokisud North and Rohne projects will be important early tests of NMDC’s ability to establish new mineral businesses at a scale that can meaningfully reduce its dependence on iron ore.
Iron Ore Business Remains Central to NMDC’s Growth Strategy
While NMDC is expanding into coal and exploring other minerals, the company continues to pursue an aggressive expansion of its core iron ore business.
NMDC has set a target of reaching 100 MT of annual iron ore production capacity by 2030.
The company produced a record 53.15 MT of iron ore in FY26, registering growth of around 21% over the previous year. Iron ore sales increased by about 13% to 50.23 MT during the same period.
According to a Ministry of Steel statement, NMDC became the first Indian miner to cross 50 MT of annual iron ore production.
The company’s financial performance also strengthened during FY26:
- FY26 revenue: ₹31,554 crore
- FY25 revenue: ₹23,668 crore
- Revenue growth: About 33%
- FY26 iron ore production: 53.15 MT
- FY26 iron ore sales: 50.23 MT
NMDC Supplies Around 20% of India’s Iron Ore Requirement
NMDC currently accounts for around 20% of India’s iron ore requirement and operates mechanised mining complexes in the Bailadila region of Chhattisgarh and the Donimalai region of Karnataka.
Iron ore remains the dominant contributor to the company’s operations and revenue. NMDC’s CMD has indicated that the company is currently 99.9% an iron ore company, underscoring the scale of the diversification challenge.
The planned coal projects are therefore expected to broaden NMDC’s mineral portfolio, although the volumes targeted from coal in FY27 will remain relatively modest compared with its iron ore operations.
Coal Projects Mark First Step Towards Mineral Diversification
The start of thermal coal production at Tokisud North and the planned development of the Rohne coking coal block represent an important shift in NMDC’s business strategy.
The company’s diversification journey will depend on several factors, including:
- How quickly Tokisud North approaches its rated capacity
- Whether Rohne begins production as targeted in FY28
- The commercial performance of the coal assets
- Acquisition of additional mineral assets before 2030
- NMDC’s ability to scale its non-iron ore businesses
If the planned projects progress as scheduled, coal will become the first major addition to NMDC’s mineral portfolio beyond iron ore, supporting its longer-term objective of generating 20% of revenue from other minerals by 2030.
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.
Read also: NMDC Iron Ore Production Surges to 23.23 MT Through August 2026, Sales Reach 18.72 MT
