NMDC will begin commercial thermal coal production at its Tokisud North mine in Jharkhand during the October-December quarter and aims to sell up to 1 million tonnes in fiscal 2026-27, chairman Amitava Mukherjee said in an interview with PTI published on September 6.
The state-owned mining company, which operates under the Ministry of Steel, is also developing a coking coal mine and expects to begin production there as early as fiscal 2027-28. The move marks NMDC’s expansion beyond its predominantly iron ore business.
“We have reached the coal seam (of Tokisud North coal mine), and the production will start by next quarter,” Mukherjee said, according to the report. He said NMDC would offer coal to potential buyers during the current fiscal year.
Tokisud North has reserves of 52 million tonnes and an annual peak rated capacity of 2.3 million tonnes, according to details cited in the report. NMDC won the mine in an auction conducted by the Ministry of Coal. The company also secured the Rohne coking coal block in Jharkhand, which has reported reserves of 191 million tonnes and a peak rated capacity of 8 million tonnes.
Thermal coal is primarily used for power generation, while coking coal is an important raw material in steel manufacturing. NMDC’s planned entry into both segments will add coal to a portfolio currently dominated by iron ore, the company’s main business.
Mukherjee said NMDC aims to derive at least 20% of its revenue from minerals other than iron ore by 2030. He described the diversification plan as part of the company’s longer-term effort to become India’s largest mineral mining company and support the government’s industrial development goals.
NMDC currently meets about 20% of India’s iron ore requirement, according to the report. The company recorded total revenue of Rs 31,554 crore in FY26, up 33% from Rs 23,668 crore in FY25.
Its iron ore production also rose to a record 53 million tonnes in FY26 from 44 million tonnes in FY25, a year-on-year increase of 20%. The company is targeting iron ore production of 100 million tonnes by 2030.
NMDC operates four major mechanised iron ore mining complexes in Chhattisgarh’s Bailadila sector and Karnataka’s Donimalai sector. The next stated milestone for its diversification plan is the start of commercial thermal coal production at Tokisud North in the October-December quarter.
