State-owned NMDC will launch commercial thermal coal production during the October-December quarter, targeting up to 1 million tonnes in sales within FY27. Chairman Amitava Mukherjee outlined a broader diversification roadmap aimed at reducing the iron ore miner’s heavy revenue dependence by 2030.
Tokisud North Mine and the Push into Thermal Coal
State-owned NMDC Limited is preparing to start commercial thermal coal extraction from its Tokisud North mine in Jharkhand during the October-December quarter. Amitava Mukherjee, Chairman of India’s largest iron ore mining player, confirmed that the company has successfully reached the coal seam at the site and expects commercial sales to begin next quarter.
The company acquired the Tokisud North block through an auction conducted by the Ministry of Coal. The asset holds estimated reserves of 52 MT and carries an annual peak-rated capacity of 2.3 million tonnes (MT). For the upcoming fiscal period, NMDC has set an initial sales target of up to 1 million tonnes of thermal coal, representing a measured ramp-up rather than full utilization of the mine’s rated capacity.
“We have reached the coal seam (of Tokisud North coal mine), and the production will start by next quarter.”
Amitava Mukherjee, Chairman, NMDC
Diversification Strategy and Rohne Coking Coal Plans
Alongside thermal coal, NMDC is advancing plans for metallurgical coal. The miner secured the Rohne coking coal block in Jharkhand, which holds 191 MT reserves and boasts an 8 MT peak rated capacity. Development of the Rohne block is slated to begin within FY27, with commercial production targeted as early as FY28.
“So this year, NMDC will have coal to offer apart from iron ore, and going forward maybe from next fiscal coking coal too.”
Amitava Mukherjee, Chairman, NMDC
These moves form the backbone of a corporate roadmap extending to 2030, designed to transform the enterprise from a single-commodity producer into a diversified mineral extraction firm. Executives have set a clear benchmark for this transition.
“Right now, we are 99.9 per cent an iron ore company. We aim to help the growing industries in the country with maximum of their mineral needs.”
Amitava Mukherjee, Chairman, NMDC
Under the outlined strategy, the chairman aims to generate at least 20 per cent of total corporate revenues from minerals outside iron ore by 2030, exploring additional domestic and international mineral assets along the way.
Iron Ore Production Records and Financial Strength
Even as NMDC diversifies, its core iron ore division continues to expand rapidly. Operating four major mechanized complexes across Chhattisgarh’s Bailadila sector and Karnataka’s Donimalai sector, the Hyderabad-based enterprise single-handedly caters to roughly 20 per cent of India’s domestic iron ore requirements under the Ministry of Steel.
The company reported record operational and financial figures for FY26, reinforcing the capital backing needed for its new mining ventures. Total revenues surged 33 per cent to an all-time high of ₹31,554 crore, compared to ₹23,668 crore in FY25. Iron ore production reached 53 MT of iron ore in FY26, up 20 per cent from 44 MT production in FY25 the previous year. Management remains firmly on track to achieve its overarching target of 100 MT of iron ore by 2030.
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