NMDC is likely to invest nearly Rs five billion (USD 61 million) as it plans to foray into gold mining. The iron-ore producer is also in process to secure a lease for the Chigargunta-Bisanatham gold block soon, as it has signed a letter of intent (LoI) for the project with the state government in the latter part of 2022.

According to local norms, mining lease for the gold block must be secured within three years of signing the LoI. The block, which is located in the Chittoor district of Andhra Pradesh, has estimated gold reserves of around 1.83 million tonne, with 5.15 grams of gold per tonne.

The company plans to appoint a consultant to get the assistance for government clearance process, including the environmental nod. India meets more than 90 percent of its gold demand through imports, and incurred USD 36.6 billion on overseas purchases in 2022, and USD 55.8 billion in 2021.

NMDC, which owns mechanized iron ore mines in Chhattisgarh and Karnataka, also operates the only mechanized diamond mine in India at Panna, Madhya Pradesh.