NMDC Limited has signed a long-term iron ore supply agreement with Steel Exchange India Limited (SEIL), under which the state-run miner will supply iron ore fines with an Fe content of 61–63% for a period of four years. The material will be supplied from NMDC’s upcoming buffer stockpiling and blending facility at Visakhapatnam. The agreement was disclosed by SEIL on September 10.
The agreement is aimed at providing SEIL with a more consistent source of iron ore for its steelmaking operations. NMDC will offer different delivery options, including direct supply through a conveyor as well as transportation through other logistics modes. The arrangement will therefore cover both material availability and movement from the Visakhapatnam facility to SEIL's operations.
The 61–63% Fe specification is important for SEIL as it gives the company access to a defined grade of iron ore fines over the four-year period. The material will come through NMDC's planned buffer stockpiling and blending facility, which is being developed at Visakhapatnam. NMDC had earlier identified land at Visakhapatnam for a blending yard, pellet plant and related facilities as part of its infrastructure plans.
The agreement also comes at a time when SEIL is expanding its steelmaking operations. The company has recently commissioned a new reheating furnace, and the long-term arrangement with NMDC is intended to strengthen its access to raw materials as its production capacity increases. For an integrated steel producer, maintaining a steady supply of suitable iron ore is an important part of keeping production operations running consistently.
For NMDC, the arrangement provides another long-term channel for supplying iron ore to a domestic steel producer. The company remains India's leading iron ore producer and has been working on infrastructure and logistics projects to support higher production and sales. In FY2025, NMDC produced 44.07 million tonnes of iron ore and sold 44.40 million tonnes, according to its annual report.
The Visakhapatnam facility also has relevance beyond this particular agreement because blending can help in maintaining a more consistent feed grade from different sources of iron ore. NMDC's plans for the site include a blending yard, pellet plant and ancillary facilities, giving the location a broader role in its downstream and logistics strategy. The latest agreement with SEIL adds a confirmed domestic customer to this developing supply network.
The deal is also notable because it is a four-year supply arrangement rather than a short-term purchase agreement. Such a longer supply period gives SEIL greater visibility over one of its key steelmaking raw materials, while NMDC gets a defined outlet for the specified grade of fines. The actual volumes and commercial value of the agreement have not been disclosed in the available announcement.
The agreement strengthens the link between NMDC's iron ore supply network and India's domestic steel industry. With SEIL expanding its operations and NMDC developing additional handling and blending infrastructure at Visakhapatnam, the arrangement brings together raw material supply, processing and logistics at a time when Indian steel producers continue to focus on securing dependable domestic iron ore supplies.