NMDC, with reserves of 1.4 billion tonne, plans to expand production capacity to 50 million tonne by 2014-15 in order to meet the rising domestic demand. The company also plans to adopt a new pricing mechanism with the new contracts which will be flexible and move in line with the spot price.

Furthermore, NMDC Ltd is likely to commission three new iron ore mines over a period of next three years. The company’s mines situated in Karnataka and Chhattisgarh will have capacity of 24 million tonne per annum (mtpa).

Besides this, it is also considering acquiring rock phosphate and potash mines in foreign countries. It is also understood that NMDC was considering acquiring 50 per cent stake in the Brazilian operations of Ferrous Resources for $2.5 billion.