NMDC jumps on reporting 4% rise in iron ore production during October

NMDC's iron ore production rose 3.83% to 4.07 million tonnes (MT) in October 2024, up from 3.92 MT in October last year. Sales volumes increased 17.15% to 4.03 MT in October 2024, up from 3.44 MT in the same month a year ago.

The company’s Chhattisgarh mines produced 2.93 MT of iron ore and registered a sales volume of 2.91 MT in October 2024, while Karnataka mines produced 1.14 MT of iron ore and sold 1.12 MT of iron ore in October 2024.

In the previous month, the investors were buoyant by rumours of a merger between KIOCL and NMDC Ltd, which the company clarified as unwarranted rumours. The company said in the exchange filing that no negotiation has occurred in this regard. It is also clarified that the” company has not received any information from the Government of India on behalf of the President of India for the merger of NMDC Limited & KIOCL Limited”

NMDC is a state-controlled mineral producer for the government of India. It is fully owned by the Government and under the administrative control of the Ministry of Steel. Hence, all the matters pertaining to the merger fall under the purview of the Ministry of Steel, Government of India, in consultation with the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, Government of India.

Following the buoyant business update, the shares of NMDC Ltd jumped nearly 2% higher on Monday and closed 1.78% higher at ₹226 apiece on the NSE late on Monday.