Bastar, Chhattisgarh, September 28, 2026: NMDC Ltd has commissioned its 2 million tonnes per annum (MTPA) pellet plant at Nagarnar, Chhattisgarh, marking a significant step in the company’s efforts to strengthen its presence across the iron ore value chain.
The pellet plant forms part of a ₹5,427-crore integrated project comprising an iron ore processing facility at Bacheli, a 15 MTPA slurry pipeline and the 2 MTPA pellet plant at Nagarnar. Together, the facilities establish an integrated system connecting NMDC’s iron ore mining operations at Bacheli with its steel plant at Nagarnar.
A key component of the project is the 135-km slurry pipeline, which transports processed iron ore concentrate from Bacheli to Nagarnar. The pipeline provides an alternative to road transportation and is designed to improve the efficiency of iron ore evacuation from NMDC’s mining operations.
The project will enable NMDC to make greater use of iron ore fines and slimes generated at its Bailadila mines. These materials can be processed into concentrate and subsequently converted into pellets, creating additional value from resources generated during mining and beneficiation.
The newly commissioned pellet plant uses Straight Grate Induration technology to produce iron ore pellets suitable for use in steelmaking. The addition of pellet production strengthens NMDC’s downstream capabilities and expands its portfolio beyond conventional iron ore mining and processing.
The maiden production from the pellet plant was monitored live from NMDC’s headquarters by Amitava Mukherjee, Chairman and Managing Director, NMDC Ltd, along with senior company leadership. Adverse weather conditions prevented the leadership team from travelling to the project site for the commissioning-related activities.
Speaking on the occasion, Mukherjee described the commissioning as an important milestone for the company. He noted that the project involved the execution of multiple major components, including the processing facilities, slurry pipeline and pellet plant.
The integrated infrastructure is expected to strengthen NMDC’s operational link between its Bacheli mining complex and Nagarnar steel plant, while providing greater flexibility in the movement and processing of iron ore.
The slurry pipeline passes through 61 villages in Bastar and Dantewada districts. Its commissioning is intended to reduce the dependence on road movement for processed ore, provide an alternative evacuation route and lower NMDC’s dependency on railway transportation.
The project also represents a move towards greater resource utilisation. By converting iron ore fines and slimes into concentrate and pellets, NMDC can increase the value recovered from its mineral resources while supporting the raw material requirements of the steelmaking ecosystem.
The commissioning comes as NMDC pursues a broader expansion and diversification strategy. The company has set a long-term objective of increasing its iron ore production capacity to 100 million tonnes annually, making investments in processing, transportation and value addition increasingly important to its growth plans.
With the new facilities operational, NMDC now has an integrated infrastructure chain covering iron ore mining, beneficiation, slurry transportation and pellet production. The project is expected to play a role in improving logistics efficiency and supporting the company’s long-term plans for capacity expansion and value-added iron ore products.