State-run NMDC, India's biggest iron ore miner, is studying lithium, copper, cobalt and rare earth blocks from Chile to Australia, industry sources said. It wants at least 20% of its revenue to come from minerals other than iron ore.
At a glance
- NMDC supplies about a quarter of the iron ore India uses, and almost nothing else today.
- Industry sources say it is looking at critical mineral blocks in Chile, Australia, Africa, Brazil and parts of Asia.
- The company's target is to earn at least a fifth of its revenue from minerals other than iron ore.
Background
NMDC is a government-owned mining company and India's largest producer of iron ore, the main raw material for steel. Critical minerals such as lithium, cobalt and rare earths go into batteries, electronics and defence equipment, and India imports most of what it uses. The government wants state companies to secure supplies at home and abroad.
What happened
NMDC is scouting for mining assets on four continents, from South America in the west to Australia in the east. Industry sources described the plans in reports carried by The Hindu and The Economic Times on Sunday. The search covers lithium, copper, cobalt and rare earth blocks in Chile, Australia, Africa, Brazil and parts of Asia.
The company is also looking at limestone, dolomite, coking coal and tungsten blocks in the UAE, Oman, Bhutan and Australia, the sources said. These minerals feed India's steel, car, electronics, renewable energy, defence and railway industries.
Why NMDC wants to diversify
"Right now, we are a 99.9% iron ore company," NMDC said when asked about the plans. "We aim to help the growing industries in the country with the maximum of their mineral needs," it added.
Chairman Amitava Mukherjee told PTI earlier that NMDC aims to become India's largest mineral mining company. He set a goal of earning at least 20% of revenue from minerals other than iron ore. Depending on a single product leaves the company exposed to swings in steel demand and iron ore prices.
What it means for India
Overseas mines would give Indian industry a supply of minerals the country barely produces, and cut its reliance on imports. Raw materials make up around 65-70% of steelmaking costs, according to the Steel Ministry's draft Steel Policy Vision 2047. That draft calls for domestic mining, asset buying abroad and long-term supply deals to reduce import dependence.
No deal has been announced yet. Buying stakes in foreign mines usually takes years of exploration, approvals and negotiation before any mineral reaches India.
Our read
Outlook: neutral. This is an early search for assets with no deal or output yet, so it does not change iron ore or critical mineral supply in the near term.
What to watch
- Whether NMDC names a first overseas lithium, copper or rare earth block or partner.
- Any board approval or budget NMDC sets aside for acquisitions abroad.
- How the final Steel Policy Vision 2047 treats overseas raw material assets.
For information only, not investment advice.
Iron price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-25: Reports say NMDC is scouting mining assets on four continents.
Supply Drivers
NMDC wants to add overseas sources of lithium, copper, cobalt and rare earths, minerals India mostly imports today.
Government Policies
The Steel Ministry's draft Steel Policy Vision 2047 backs asset buying abroad and long-term supply deals to cut import dependence.
What could lift prices
- If NMDC adds other minerals, its earnings would rely less on iron ore, which could steady its iron ore output plans.
- Growing Indian steel demand, which the draft policy expects to rise across many sectors, supports steady iron ore consumption.
What could weigh on prices
- Money spent on overseas mines could compete with spending on NMDC's iron ore expansion.
- Any slowdown in steel demand would still hit NMDC hard, since iron ore is almost all of its business today.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | Medium | Overseas mines would give Indian industry minerals the country barely produces and reduce imports. |
| Chile | Low | Chile is one of the places where NMDC is said to be studying lithium and copper blocks. |
| Australia | Low | Australia appears in both of NMDC's search lists, for critical minerals and for steel raw materials. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Iron Ore Mining | Neutral | NMDC's iron ore business continues unchanged while it searches for other minerals. |
| Critical Minerals Mining | Positive | A large state-backed buyer is looking for lithium, cobalt, copper and rare earth projects. |
| Steel | Positive | Coking coal, limestone and dolomite assets would secure more steelmaking raw materials for India. |
Who gains, who loses
- Owners of early-stage critical mineral projects: NMDC is a large, government-backed potential buyer or partner.
- Indian battery and electronics makers: Their main raw materials would come from an Indian-owned source if deals go ahead.
- NMDC shareholders: Overseas acquisitions carry exploration and country risks that iron ore mining at home does not.
Other ways this could play out
- If NMDC signs an early deal in Chile or Australia, India would gain its first state-owned source of lithium or copper concentrate.
- If prices of these minerals fall, NMDC could slow the search and keep its focus on iron ore.
Price risks
- A firm acquisition announcement, with a size and timeline, would carry more weight than an early search.
- Changes in Indian steel demand would move iron ore far more than these overseas plans.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
India
Australia
Brazil