India exports most of its iron ore to China, but the government wants NMDC to evaluate iron ore primarily in the domestic market. Despite China's buoyant demand, the government wishes NMDC to support the local market where steel demand is strong.
It is noteworthy that in 2023, when China's iron ore imports reached a record level, the Indian government prevented NMDC from selling directly to China. So far, NMDC continues to supply iron ore to China through private exporters.
Tensions between India and China continue, especially after the border conflict in 2020. While this situation affects NMDC's trade with China, the company does not continue export agreements with other countries such as Japan and Korea.
NMDC's decision not to participate in the ongoing mining auctions in the country and started negotiations with the southern state of Karnataka for a lithium exploration and extraction license reflects the company's strategic plans.
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