scientific social responsibility expanding horizons€¦ · development of a green- field mine...

SCIENTIFIC MINING

SOCIAL RESPONSIBILITY

CLIMATE PROTECTION

BIODIVERSITY CONSERVATION

ECONOMIC DEVELOPMENT NMDC

Sustainability Report- 2018

from ore to steel

Expanding Horizons

Donimalai, Bailadila Deposit-5, 10, 14 and 11C obtained FIVE Star rating from IBM, Ministry of Mines.

On 20th Mar’2018, NMDC’s 5 Iron ore mines received 5 star rating from Sri Narendra Singh Tomar, Hon’ble Union Minister of Mines at the 3rd National Conclave

on Mines and Minerals at New Delhi, organized by Ministry of Mines, Govt. of India.

“Since inception NMDC has been in the forefront in encouraging and implementing best sustainable mining practices and adopting scientific mining, mineral conservation and beneficiation techniques. This recognition will help NMDC to

reach greater heights of excellence in mining and keep up the spirit of being the Nations’ true eco-friendly miner.”

N Baijendra Kumar, CMD, NMDC

Indian Bureau of Mines (IBM) , Ministry of Mines, Government of India, has introduced a star rating system for evaluation of implementation of Sustainable Development Framework for leased mines in India in 2015-16.

The Star rating system focuses on areas like-

5 STAR RATING by Indian Bureau Of Mines

Managing Impacts through Scientific and Efficient Mining. Social Impacts of Resettlement and Rehabilitation. Local Community Engagement and Welfare Programmes. Progressive and Final Mine Closure. Adoption of International Standards.

Contents

About the Report ........................................................................................................................................................................................................2

CMD Message ............................................................................................................................................................................................................4

Sustainability Strategy ...............................................................................................................................................................................................6

Sustainability Indicators ......................................................................................................................................................................................... 10

Organisation Profile ................................................................................................................................................................................................. 12

Ethics and Integrity ................................................................................................................................................................................................. 27

Corporate Governance ........................................................................................................................................................................................... 29

Stakeholder Engagement....................................................................................................................................................................................... 36

Reporting Practices ................................................................................................................................................................................................. 39

Economic .................................................................................................. 42

Economic Performance .......................................................................... 43

Indirect Economic Impacts .................................................................... 48

Procurement Practices ........................................................................... 49

Anti-Corruption ......................................................................................... 50

Environmental ...............................................................................52

Material ............................................................................................54

Energy ..............................................................................................55

Water ................................................................................................58

Biodiversity .....................................................................................59

Emissions ........................................................................................62

Effluents and Wastes ....................................................................64

Environmental Compliance .........................................................67

Social ......................................................................................................... 70

Employment .............................................................................................. 71

Occupational Health and Safety ........................................................... 74

Training and Education ........................................................................... 77

Diversity and Equal Opportunity ............................................................ 80

Non-Discrimination .................................................................................. 81

Freedom of Association and Collective Bargaining .......................... 81

Local Communities ................................................................................. 82

Abbreviations............................................................................................................................................................................................................ 94

GRI Content Index ................................................................................................................................................................................................... 96

MM Sector Supplement .......................................................................................................................................................................................100

Independent Assurance Statement ...................................................................................................................................................................101

2 NMDC Sustainability Report 2018

About the Report102-46

NMDC Sustainability Report 2018 3

The scope of this sustainability report covers the units of NMDC as given below:

NMDC has prepared this report in a balanced, clear, reliable, accurate, reasonable and transparent manner. Adequate care and a systematic approach have been taken to ensure that the reported data are complete and accurate at the operations level.

Quantitative data has been represented in the metric system and the currency has been reported as Indian National Rupees (₹) with dollar conversion rate (1 $ = 65.0441 ₹).

The report adheres to the reporting principles of GRI Reporting Standards addressing 3 principles of Accountability as per AA1000 APS-2008 namely - materiality, stakeholder inclusiveness, sustainability context and completeness.

National Mineral Development Corporation (NMDC) has made pioneering contributions in the areas of Iron Ore explorations and mining, transforming societies around its locations, environment protection and acting as a responsible Corporate Citizen as a whole. Essentially the key principles of Triple Bottom Line Excellence are deeply ingrained in the organizational design through Guidelines, Frameworks and MOUs of Government of India. In order to give a sharper focus on Sustainability Principles and to embed them in the systems, processes and performance metrics, NMDC has published its 2nd Annual Sustainability Report for the reporting period of the financial year 2017-18, i.e. April 1, 2017 to March 31, 2018 as per the Global Reporting Initiative (GRI) Standards ‘in accordance’ Comprehensive option to accelerate its journey of Sustainable Development.

This report aims to apprise stakeholders transparently about the applicable materiality issues, adherence to the path of sustainability development, performance indices, major organizational achievements, its difficulties and challenges and steps taken to address the stakeholder concerns.

NMDC will continuously make progress in terms of expanding the reporting scope, developing a greater understanding of stakeholders, innovating new modes of engagement and defining a clear path forward in line with its sustainability strategy. To ensure comparability, the content maintains a historical series of three fiscal years, wherever applicable.

This report deliberates on all matters pertaining to responsible and value based functioning of all NMDC operations along with addressing the risks associated with the economic, environmental, and social dimensions. .

Giving a sharper focus on Sustainability Principles

l Bailadila Iron Ore Project – Kirandul Complex, Chhattisgarh

l Bailadila Iron Ore Project –Bacheli Complex, Chhattisgarh

lDonimalai & Kumarswamy Iron ore Mines – Donimalai Iron Ore Project

l Diamond Mining Project –Panna, Madhya Pradesh

l Pellet Plant –Donamalai, Karnataka

l Nagarnar Iron & Steel Plant – Jagdalpur, Chhattisgarh

l NMDC Corporate Office – Hyderabad, Telangana


NMDC had an impressive performance in the year 2017-2018 with the highest ever production of 35.60 Million Tonnes of Iron ore and sales of 36.0 Million Tonnes. We achieved a turnover of ` 11,615 Crores, Profit Before Tax (PBT) of ` 6,179 Crores and Profit After Tax (PAT) of 3,806 Crores, recording an increase of 32%, 44% and 47% respectively over the previous year.

In line with Sustainability Principles, we have well-crafted strategies in place, factoring in the challenges in the areas of economic, environmental and social. The iron ore mining industry in India is expected to witness enhanced competition over the next few years through imports and by backward integration of steel plants. At the same time, the high prospects of the growth of the Indian Steel Industry in the coming years promise to offer substantial opportunities to us. Accordingly a long-term Strategic Management Plan (SMP), ‘Vision 2025’ has been formulated which envisages an increase in iron ore production capacity to 67 MTPA by 2021-22. The strategy focuses on growth largely through brown field expansion of existing mines and improving evacuation along with it. Development of a green- field mine (Deposit 13) has also been planned through Joint Venture with the Chhattisgarh State Mining development Corporation.

Dear Stakeholder

I am pleased to present 2nd Sustainability Report of NMDC in accordance with comprehensive option of the

Global Reporting Initiative (GRI) – Standards, manifesting our resolve to move forward on the path of Sustainable Development in an expeditious manner. Since inception, embedding sustainability in all our operations, has been our persistent approach. This report aims at sharing our sustainability approach and performance with our stakeholders and the world at large. We understand that sustainable development is all about implementing well-balanced strategies to achieve economic, environmental and social objectives to ensure future proofing and long-term growth of an organization.

102-14

CMD Message


To meet the expansion goals, capacity building schemes are at various stages of implementation which include SP–III Kirandul, relocating Crushing Plant of Dep.14 & 11/C and Downhill conveyor, additional screening lines in Bacheli & Kirandul and Rapid Wagon Loading System (RWLS). To augment the evacuation capacity a host of projects have been launched including an ambitious project of Slurry Pipeline having a favourable impact on environment and economics. The capacity of the slurry pipeline is 15 MTPA which will be complemented by beneficiation Plant and Pellet Plant.

Driven by strategic imperatives, NMDC has forayed into pellet and steel production. The 3 MTPA steel plant with the state-of-the-art technologies, is in advanced stage of construction and getting ready for its commissioning of various units progressively. The Plant will be producing an impressive array of products viz. HR Plates, API - 5L Quality Plates, HR Sheets, HR Coils, High Carbon Steel, Silicon Steel and Automotive Steel.

We commissioned a Minehead based 1.2 MTPA pellet plant in Donimalai which showcases our Sustainable Development practices. The project has been conceived and commissioned for utilizing slimes and fines generated in Donimalai Mine to make pellets enabling conservation of precious mineral resources and also making a valuable contribution to environment protection by extending the life of the existing tailing dam. The total production of pellets was 0.59 Lakh tonnes during the year 2017-18.

NMDC is aligned with the Sustainable Development Goals of the United Nations and reports the progress on the SDG elements mapped for the mining industry. We have made significant contributions to the community development areas covered by the Sustainable Development Goals. NMDC has been one of the earliest signatories to the United Nations Global Compact (UNGC) Network and has played an active role in the formation and growth of the Network in India.

Our sustainability strategy focuses on the areas that represent key challenges and opportunities, i.e., Community Development, Employee Welfare, Scientific Mining, Employee Safety, Biodiversity Conservation, Energy Efficiency, and Land Reclamation. The company has consciously aimed at exceeding legal compliance requirements and ensured that the policies and procedures related to ethical business practices are implemented.

We are committed to environmental protection and have deployed Management Systems, processes, R&D, technology and resources to minimize adverse impact on the environment due to our operations. Carbon foot print studies have been conducted during the year and subsequent actions are under implementation. Donimalai, Bailadila Deposit-5, 10, 14 and 11C obtained Five Star rating from IBM, Ministry of Mines, for excellence in Sustainable Mining. The specific water consumption reduced to 0.11 m³/t ROM from 0.13m³/t ROM in the previous year. Our Downhill Conveyor System has produced

3453 Mwh electricity and the total saving accrued during the last 3 years is ` 12.08 Crores. A 10.5 MW capacity wind mill and ongoing expansion of solar power is a testimony to our commitment towards renewable energy. We have committed significant resources to the plantation programme and Bio-diversity conservation plan.

NMDC takes pride in transforming people and societies through community engagement, infrastructure building, creating massive educational infrastructure and providing health services. NMDC has partnered with State Government to establish a state-of-the-art Education City benefiting thousands of students at Geedam with institutions ranging from primary school to professional ones in a single campus to spur an educational revolution in the area. It is heartening to share that your company’s CSR Policy has been lauded by the Department of Public Enterprises (DPE) as a model worthy of emulation by other companies. Like previous years, NMDC has committed significant resources towards CSR activities which stood at ` 169 Crores.

NMDC places great value on the health and safety of our workforce and a comprehensive safety management system has been deployed to ensure a safe workplace for every employee. Our efforts resulted in encouraging safety performance parameters with zero fatal accidents in the last 3 years and a severity rate of 0.43 per 1000 man days worked in 2017-18.

NMDC has fostered a culture that rewards continuous learning, collaboration and talent for the organization to be future-ready and to meet the challenges posed by ever- changing market realities. Capability building of the workforce is achieved by combining formal learning with vigorous on-the job development, coaching and feedback which has led to executives and workmen improving their performance and advancing their careers in significant ways.

We at NMDC are steadily marching ahead on Sustainable Development path to reach new heights of performance in Economic, Social and environmental to make a significant contribution to our immediate society and the country which will add to Global Sustainability.

N. Baijendra Kumar, IAS Chairman-Cum-Managing Director


l To expand the operations in the areas of Mining and Mineral Processing to meet the growing demands from domestic and international markets..

lAchieve international standards in per capita productivity, value addition and cost effectiveness.

lSetting up of Steel Plant at Nagarnar.

l To increase the iron ore production capacity to 67 MTPA by 2021-22..

lAchieve growth by: (a) Expansion of existing mines. (b) Operating new mines fully owned by NMDC or in

Joint Venture.

lGive thrust to exploration and exploitation of iron ore and other strategic & critical minerals.

lTo conserve mineral resources through scientific mining.

lTo maintain high level of customer satisfaction.

lTo improve the quality of life of people in general and the socio-economic in and around the mines in particular.

lTo maintain environment protection.

Micro ObjectivesMacro Objectives

To emerge as a global environment friendly mining organization and also as a quality steel producer with a positive thrust on social development. The same is reinforced in the Mission statement and the Objectives

Vision MissionTo maintain its leadership as the largest iron ore producer in India, while establishing itself as a quality steel producer and expanding business by acquiring and operating various iron ore, coal and other mineral assets in India and abroad, rendering optimum satisfaction to all its stakeholders.

Sustainability StrategyKey impacts risks and opportunities

102-15


Driven by our Vision, Mission and Objectives our sustainability strategy is based on the premise that strong sustainability performance throughout the mine lifecycle delivers value for the business, our shareholders and stakeholders. Meeting the needs of the present without compromising the needs of the future requires that we understand and effectively manage our broad profile of social and environmental risks. As an organizational value, sustainability – serving as a catalyst for local economic development through transparent and respectful stakeholder engagement and as responsible stewards of the environment – is a deeply ingrained principle that guides our actions and supports our purpose to create value and improve lives through sustainable and responsible mining.

Sustainability management is an integral part of NMDC business strategy. We leverage business opportunities, minimize risk and seek to overcome social and business challenges such as scarcity of resources and climate change at an early stage. We continuously strive to improve our sustainability performance and further develop our strategy, defining it more precisely. To this end, we have established a company-wide strategy cascaded to subsidiary specific sustainability activities and ensuring systematic consideration of stakeholder’s requirements. We review our sustainability targets annually and adjust them as required. In doing so, we also take the changing requirements of our stakeholders into account.

Respective functions at corporate and at subsidiaries have been earmarked responsibility to improve the performance in

their sustainability dimensions. These form the core areas for implementing relevant projects.

NMDC commitment to sustainable mining focuses on following key topics:

l Competitiveness, profitability and growthl Efficient mining and state of art technology deployment in

miningl Lean ore utilization and tailings managementl Protecting water resourcesl Land management and Biodiversity preservationl Reducing emissions, improve energy efficiency and reduce

GHG emissions in our operationsl Being committed to health and safety of employees,

contract labours and communitiesl Attract, develop and retain people l Valuing human rightsl Engaging and supporting our communitiesl Being trustworthy and transparentl Maintaining good governance

Technology Deployment in Miningl Use of Mine Planning software.l Higher capacity HEMM deployment.lHighly Mechanized iron ore crushing, screening and loading

plants.


Sustainability Strategy FrameworkImplementation of our sustainability strategy requires a framework that connects all the required elements, beginning with the policies that serve as the framework’s foundation, in order to deliver on our commitments. Our sustainability policy lays emphasis on Environmental Sustainability, Economic Sustainability, and Socio-Cultural Sustainability. NMDC Sustainability Policy is integrated with Environmental Policy, Occupational Health and Safety Policy, Community Development Policy and together they provide the broad framework for driving business in a responsible manner.

Risk management at NMDC is undertaken in a structured manner and various functions and Roles & Responsibilities have been created for the same. NMDC has a robust Risk Management framework and a Risk Management Committee, comprising of all the functional directors has been established to monitor the progress of Risk Management Performance. The committee reports regularly to the Board of Directors on its activities. The significant risks have been identified as Risks That Matters (RTMs) have been identified and the Mitigation Plan has been formulated and implemented. With a view to address the long-term opportunities and risks, NMDC has formulated Vision

2025 and has developed six pillars of strategic transformation wherein sustainability is one of the key pillars. The six strategic transformation areas are Business, Operations, Sustainability, Capital Projects, Human Resource and IT have been identified. The SMP-2025 covers organization wide activities and the six transformational areas will ensure mitigation of risks and at the same time harnessing the opportunities which may arise in future.

The major international standards i.e. ISO 9001, ISO 14001, OHSAS 18001 and SA 8000 have been deployed which cover a significant area of Sustainable Development. The extensive tools associated with these standards are being utilized towards Sustainable Development. All the policies are embedded and aligned to ISO 14001:2004 (Environmental management systems), ISO 9001:2008 (Quality Management systems) and OHSAS 18001:2007 (Occupational health and safety), United Nations Global Compact, Corporate Environmental Policy and CSR policy The exclusive policy for Corporate Social Responsibility acts as a strategic tool for integrating business processes with the social processes for the overall development of the society. We align our activities in line with Sustainable Development Goals (SDG).

The tools in the management systems include policy, procedure, objectives & goals, KPIs, risk identification and review mechanism. With a view to give a more structured organizational response to the requirements of Sustainable Development, a team of Sustainability Champions are in place. With the Board Sub-committee on CSR and Sustainability in place the leadership requirements for Sustainable Development are met by this Committee. The committee sets the direction and reviews the progress of sustainable Development. The Sustainability team drawn from the key areas define and develop the performance metrics and the KPIs. Respective functions at corporate and at subsidiaries have been earmarked responsibility to improve the performance in their sustainability dimensions. These form the core areas for implementing relevant projects.

Measuring and reporting on our progress are key elements of our sustainability framework. Targets demonstrate our commitment to transparency, focus our efforts on strategic priorities, strengthen accountability, and reflect our

commitment to continuous improvement. We continue to build on and learn from the first Sustainability Report to ensure our targets are meaningful and aligned with our strategic goals as well as broader global sustainable development priorities. The elaborate performance parameters in the areas of Economic, Environmental and Social are reported in the Annual Sustainability Report. The trends of the parameters indicate the progress on these items and corrective actions are taken in cases where the performance indices are adverse.

Sustainable Mining and Mineral ConservationMining is a process of extraction of valuable minerals and other geological material from the earth usually from an ore body. We need to make a fine balance between socio-economic development and exploitation of natural resources. However there is an urgent need to have optimal utilization of resources to have sustainable environment. Best and latest

REPORTING

TARGETS

METRICS/INDICATORS

SYSTEMS

POLICIES

STRATEGY/ STANDARDS/PROCEDURES

Sustainability Reporting

Indicators and targets in the areas of Economic, Environment and Social i.e. production, financial economic value added & distributed, expenditure on vendors, energy, water, emissions, effluents, GHG emissions, consumption, safety-severity rate, Injury Frequency rate, Training, CSR expenditure, CSR beneficiary.

Systems- Mgmt, Systems, Board Sub Committee, Heads of functions, Sustainability Champions, Risk Mgmt, IMS

SMP-2025, IMS Procedures, Norms/Standards

Sustainability Policy, Quality Policy, Environment Policy, Safety Policy, SA Policy and CSR Policy


practices followed globally are adopted by us to make mining environmentally friendly.

The geological reserves & resources of NMDC as on 1st April 2018 is 2729.83 MMt which can sustain mining for many years to come. The details are shown below -

Reserve & ResourcesName of ML Reserves Resource Total

>64% FeContent

Better reserves of high grade iron ore

2.702 bn tonsTotal iron ore reserve &

resource base

~ 35% LumpsConcentration in

FY18

Dep – 5, Bacheli 253.08 99.42 352.50Dep – 10, Bacheli 210.91 110.53 321.44Dep – 11, Kirandul

330.15 291.10 621.50

Dep – 14, Kirandul

362.19 105.33 467.52

Dep – 14 NMZ,Kirandul

162.56 78.66 241.22

Sub-TotalChhattisgarh

1318.89 685.05 2003.93

Donimalai 133.00 18.00 151.00Kumaraswamy 140.57 72.00 212.57Sub-TotalKarnataka

273.57 90.00 363.57

Total Working Mines

1592.46 775.05 2367.50

Dep-13, Kirandul (ML Under JV)

324.69 37.64 362.33

GRAND TOTAL 1917.15 812.68 2729.83

Source : Iron ore reserves and resources as per UNFC (April 1, 2018) in Million tonnes.* NMDC has 51% stake in Deposit-13.

Reclamation & Rehabilitation Plan

Striking a balance with human needs with nature has been a very sensitive need of mining industry. In order to meet the requirement of mine closure and restoration of environment as per Mines & Minerals (Development and Regulation) Act 1957 (MMDR 1957) Progressive and Final Mine Closure Plans have been drawn up and duly approved by the Indian Bureau of Mines. ICFRE, Dehradun has been engaged for preparation of Environmental Management and Reclamation & Rehabilitation Plan for different mining leases based on which NMDC has made suitable financial provisions to meet the liability arising out of mine closure and associated Reclamation & Rehabilitation works.

Water and soil conservation works have been taken up in association with Chhattisgarh State Forest Department in Reserve Forest area to improve the soil quality and water table in the region.

Software based Mine Planning and Optimization Mine Planning and Pit optimization is done through advanced software such as SURPAC, WHITTLE and MINE SCHEDULING. The software has improved accuracy in Geological modelling and economic optimization of our mining operations.

SURPAC software records and analyses exploratory holes sampling data. Block model in SURPAC provides flexibility to store numerous attributes. Mine scheduling helps to design and test different mining scenarios to ensure maximum output which enables us to develop enhanced production schedules

that are immediately responsive to changes in demand, or changes within our mine environment.

Continuous improvement initiatives includes incorporation of blast-hole data into the existing Block model to transfer data from field to plan. Data is processed by highly accurate surveying equipment such as DGPS, Robotic Total station. These databases have enabled us to meticulously predict the tonnage and quality of the lower benches.

Major Initiatives towards sustainable mining

l Exploration activities are carried out systematically within lease area in a gridded pattern to help define the ore body boundary and then conceptual pit limits are so designed to avoid re-handling or relocating of dumps/infrastructures.

l Mine Planning: l Designing of roads and ramps within active mines

to keep the lead distance for Ore to CP and Waste to Dump as minimum as possible.

l Pit designing to balance between total up-hauling and down hauling of loaded dumpers.

l Systematic production planning to minimize degradation of Forest area within lease.

l Blending of low grade ore with high grade ore for producing saleable product at mine level to reduce rejects quantity and to improve life of mine.

l Different units of NMDC have blended Sub-grade Ore/ Mineral Rejects as follows:

1. Kirandul - 0.356 MMt

2. Bacheli - 3.05 MMt

3. Donimalai - 1.01 MMt

Total - 4.416 MMt

l In-pit sumps for harvesting of rain water are created in the bottom most benches of the mine as a part of conservation of natural resources and to increase ground water level. This also helps to avoid contamination of surrounding natural water sources from surface run off.

l The entire processing of ore is carried out through dry circuit which helps in mineral conservation (no slime loss) and avoids contamination of natural water sources of surrounding areas. Moreover it reduces water requirement in the Project.

l Construction of buttress walls, garland drains and geo Coir Matting to prevent erosion or wash offs going beyond mine area.

l Plantation of local grass species over broken land to prevent soil erosion during monsoon.

l Separate stacking of sub grade ore, low grade ore and waste & rejects which may be useful for future utilization.

l Optimizing lead distance of dumpers for hauling of ore and waste for fuel conservation and increase in production with fewer resources.

l Use of slimes for pellet making.


Sustainability Indicators

10.54%39.394Carats

8.52%17.64 20.30 ` 22.03Crores

` 4092Crores

` 4293Crores

* New mines 11B and Kumarswamy are in stabilisation phase.# Nos of accidents per million manhours worked.** Man-days Lost per 1000 Man-days worked.

R & D Expenditure ` Crores


3.40-2.34%

3.07%

3.32

` 23.61Crores

` 25.50Crores

` 34.07Crores

44.30%

IBM 5 Star Sustainability Rating --- 3 Mines

0.35L/t ROM

66.7%

0.35

2.3

0

02.3

3.02

5 Mines

0.39L/t ROM

2.4


Organisation Profile102-1 to 102-13

Name of the organization 102-1

NMDC Limited

Activities, brands, products and services

102-2

Incorporated in 1958, NMDC Ltd is a Navratna public sector enterprise in India with global foot prints. It is the single largest iron ore producer in India and tenth largest and one of the lowest cost iron ore producers in the world.

The company is also operating a diamond mining project.

NMDC is involved in the exploration of wide range of minerals including iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands.

NMDC has also spread its footprint globally, with acquisition of leases of gold deposits in Tanzania, a majority stake in an iron ore deposit in Australia and a coking coal deposit in Mozambique in partnership with two other public sector enterprises under the Ministry of Steel.

Steel Plant Project at Nagarnar, Chhattisgarh

The progress of construction activities of steel plant in the year 2017-18 is noticeable in various fronts. At present, progress of civil work, structural and equipment erection are in advance stage and progressing in full swing.

Salient Features Nagarnar Steel Plant

Capacity (Liquid Steel) 3 MTPA

Project Cost (Crores) ₹ 15525

Product (HR coils/sheets/plates) 2.89 MTPA

Coke Oven & CDCP - 7 m 2 Nos.

Sinter Plant (460 m²) 1 No.

Blast furnace – 4500 m³ 1 No

SMS 2 x175T BOF

Thin Slab Caster + HSM - 2 Strand CC and HSM 2RM+4FM+2 Down Coiler

The capex achievement w.r.t. steel plant during the financial year 2017-18 is ₹ 1809 Cr. and so far, expenditure incurred for

construction of steel plant is about ₹ 13,875 Cr. The value of work awarded during the financial year 2017-18 was ₹ 280 Cr. The steel plant project is getting ready for its commissioning of various units progressively, for which operational power supply system is already energized during first week March’ 2018. In order to facilitate the commissioning activities of steel plant, procurement action for initial requirement of various raw materials, spares, consumables, etc., are also under process. The first technological unit planned to be operationalised is coke oven followed by blast furnace and other downstream units.

NMDC’S R&D Centre at Hyderabad

NMDC has an R&D Centre at Hyderabad which has been bestowed with “Centre of Excellence” by UNIDO. The centre has capabilities for undertaking studies on mineralogy, batch ore dressing, mineral beneficiation pilot plant, agglomeration, pyro and hydro metallurgy, bulk solids flowability with facilities for chemical analysis, electronic data processing and development of new products and is endowed with state of art laboratory equipment to analyse optimum use of minerals. The lab equipment are WD-XRF, ICP-AES, GFAAS, SEM, CS, TGA, ring shear tester, dry & wet abrasion tester, automatic mineral analyzer, sink-float analysis, petrological / stereo microscope, density tester, batch & pilot plant facilities for mineral processing, agglomeration etc.

R & D Capabilities

l Mineralogical characterization of ores and minerals

l Batch and pilot scale mineral beneficiation studies

l Agglomeration and pyro metallurgy

l Hydro metallurgy

l Bulk solids handling

l Chemical analysis by classical and instrumental methods.

R&D Thrust Areas

l Development of economical and sustainable process flow sheet for beneficiation of low and lean grade iron ores

l Design and exploring the feasible solutions for trouble free handling of bulk materials under varied operating conditions for enhanced productivity

l Evaluation of iron ore products (lump, fines & pellets) to assess their amenability for iron & steel making

l Development of new products from mine waste for sustainable mining operations

l Development of technology for reduction of iron ore using alternative reducing agents like hydrogen and lignite


R & D Collaborative Programmes

Collaborating Institutes

Project Title

IIT, Hyderabad Improving the efficiency of dense medium cyclone separating the high NGM Coal samples using GPU based CPM and PERT methods

IIT, Bhubaneswar Optimization of Silos, Bins and Hoppers design through modeling, primarily intended for Iron ore storage

IMMT, Bhubaneswar

Modeling & Optimization of high concentration Iron ore fines/Concentrate slurry pipe line for Indian Iron Ore Processing Industry

CSIRO, Australia Development of dry beneficiation technology for processing of hydrated (Goethite) iron ore

ECT, Australia Development of alternate iron making novel technologyin collaboration with Neyveli lignite corporation &M/s ECT, Australia.

Global Exploration Centre, Raipur

NMDC’s Global Exploration Centre at Raipur is continuously doing exploration in the mines of NMDC and adding new reserves every year. NMDC has offered to State Governments to undertake free exploration to quantify mineral resources in the State.

Description Unit Kirandul Bacheli Donimalai

Bore Holes drilled

Nos. 43 66 53

Meterage m 3798 6461 4980

Location of headquarters 102-3

NMDC Limited “Khanij Bhavan”, 10-3-311/A, Castle Hills Masab Tank, Hyderabad - 500 028 Website: www.nmdc.co.in

Location of operations 102-4

NMDC is operating three highly-mechanised iron ore mine complexes. Two complexes are located in Dantewada (Chhattisgarh) - namely Bailadila Iron Ore Mine, Kirandul Complex & Bailadiala Iron Ore Mine, Bacheli Complex with an yearly production of around 22 MT. Donimalai Iron Ore Complex, consisting of Donimalai & Kumarswamy Mines located in Bellary (Karnataka) producing around 12 MT per annum. It also has a Diamond mine with a capacity of 84,000 carats per annum at Panna in Madhya Pradesh and a 1.2 Mtpa pellet plant at Donimalai, Karnataka. NMDC has a Sponge Iron Unit at Paloncha in Talangana. NMDC is in the process of diversification in related areas and is setting up of value-added projects like 3 MTPA steel plant along with a 2 Mtpa pellet plant at Nagarnar in Chhattisgarh.

The company has a majority stake of 78.56% in Legacy Iron Ore Ltd, Australia. The company is in the process of setting up of a pilot-scale processing plant for gold in Tanzania. NMDC operates a coking coal deposit in Mozambique in partnership with two other public sector enterprises under the Ministry of Steel.


Under Construction / Lease Existing / WorkingSpecial Purpose Vehicle

Location Map


Product Profile

Average grade of iron ore of NMDC sold in the market is ~64% Fe, which is one of the best globally. The various Iron Ore products are DR CLO, Baila Lump, Baila ROM, Baila Fines, BL (10-20), Doni Lump, Doni Fines, K lump and K fines, K CLO (10-20). It also produces Iron ore Pellets, Sponge Iron and rough Diamonds. To know more about the product specifications, please see the below hyperlink: https://www.nmdc.co.in/Products.aspx


Operating Projects (Capacity per annum)

Ongoing Projects (Capacity per annum)

ServicesJoint Venture

Bailadila Iron Ore projects (Bacheli & Kirandul Complex)

NMDC Iron & Steel Plant, Nagarnar

3 MMt

ICVL Mozambique (Coal) A Joint Venture with SAIL & RINL

2.0 MMt/yr.

Research & Development Centre, Hyderabad Beneficiation, Agglomeration & Mineralogical Characterization,Bulk Solids Handling & Chemical Analysis.

Global Exploration Centre,Raipur Exploration in NMDC Mines & services to State Governments to undertake free exploration to quantify mineral resources in the State.

Diamond Mining Project- Panna

84,000 Carats

Donimalai Pellet Plant

1.2 MMt

Slurry Pipeline project along with Pellet Plant at Nagarnar

Slurry – 15 MMt

Proposed Gold Processing Plant, Tanzania

Pilot Scale processing plant

Donimalai Iron Ore Project (Donimalai & Kumarswamy Miner)

43 MMt Iron Ore

AMONG THE TOP 50 MINING COMPANIES IN THE WORLD

10 TH LARGEST IRON ORE PRODUCER IN THE WORLD

LARGEST IRON ORE PRODUCER IN INDIA


₹ 56.42 Crore Environmental Expenditure

113650 Nos. Plantation carried out

1520 m Garland drains Constructed

975 Mwh Energy Saved

27 Check Dams Constructed

22% Renewable Energy

53150 m² Area covered by Geo Textile

36542 m³ Retaining Walls Constructed

Key Environmental Impacts


Key Social Impacts

18000 Students Education scholarships to SC/ST Students per annum

10000 Inpatients per annum

133 KM Black Topping of Road

1260 people Hand pump maintenance training

100000 Outpatients per annum

89 Culverts and Bridges

1000 farmers - Agriculture Skill Development

100 people Steel sector related skilled

8000 Students Mid-day meal scheme in

38 schools

40000 People benefitted from

Mobile Medical Units

123 KM WBM Roads

1500 people Mining sector related skills


Ownership and legal form 102-5

As on 31/03/2018 the Government of India holds 72.43 % of the paid-up equity share capital in the company. The remaining shares of 27.57 % is with Financial Institutions and public.

In terms of Regulation 31 (1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Shareholding Pattern for the quarter ended 31st March 2018 is available at https://www.nmdc.co.in/Docs/ShareholdingPatterns/SPH31032018.pdf

Percentage Shareholding Profile as on 31.03.2018

President of India

Mutual Funds

FI

Insurance Companies

FII

FPI

Others72.43

1.84

3.43

13.52

0.02

4.14 4.62

Markets served 102-6

NMDC serves the national market and also the international market by exporting iron ore to countries like Japan and South Korea. It has a market share of about 25% domestically (excluding captive iron ore production). The company serves clients like MMTC, Rashtriya Ispat Nigam (VSP), Essar Steel, Ispat Industries, Vikram Sponge Iron, Sponge Iron India, KIOCL, JSW Steel, Visvesvaraya Iron & Steel Plant, Aparant Iron & Steel Company, Lanco Industries, Tata Metalliks, Kirloskar Ferrous Industries, Southern Iron & Steel Company and CG based Sponge Iron Units.

Scale of the organization 102-7

No. of operations - Units of NMDC at – Kirandul, Bacheli, Donimalai, Panna, NISP, Nagarnar, Sponge Iron Unit.

Production / 2017-18

355.76 (in lakh tonnes)

Iron Ore (WMT)

39,393.72 (Carats)

Diamonds

58,070.00 (in tonnes)

Pellets

11,614.91 (` Crores)

Revenue from Operations

Information on employees and other workers

102-8

Permanent Employees (As on 31.03.2018)

Employees / By gender

Males Nos. 5117 95.08%

Females Nos. 265 4.92%

Contract Labour : 10,791

Age Group (Years)

<30 Nos. 596 11.07%

30 -50 Nos. 3398 63.14%

>50 Nos. 1388 25.79%


Subsidiary / Associate / Joint Venture Companies

NMDC LtdNMDC Subsidaries, JV’s & Associate Companies

14.82% Krishnapatnam Railway Co. Ltd25.94% International Coal Ventures Pvt. Ltd.12.87% Neelanchal Ispat Nigam Ltd.25% Romelt SAIL (India) Ltd.*26% Chhattisgarh Mega Steel Ltd.

a) NMDC has 7 subsidiaries and stake in 5 Associate and 5 JV Companies. The names of these Companies and percentage of NMDC stake in these companies are as follows:

50% Kopano - NMDC Minerals (Pty) Ltd.51% NMDC - CMDC60% Jharkhand Minerals Development Corporation Ltd.51% NMDC SAIL Ltd. Chhattisgarh Mining Ventures Ltd.54.27% Bastar Railway Private Ltd.

95.86% J&KMDC Ltd100% NMDC Power Ltd.78.56% Legacy Iron Ore Ltd. Australia100% Karnataka Vijaynagar Steel Ltd.100% NMDC Steel Ltd.100% Jharkhand Kolhan Steel Ltd100% NMDC SARL*

* Under closure.b) The subsidiaries of NMDC are Board managed with the primary interest to manage such Companies in the best interest of the

shareholders. The framework for Subsidiary/Associate/JV Companies are as under:- i) All investments in these Companies are approved by the Board of Directors. ii) The Company nominates its representatives on the Board of these Companies. iii) The minutes of the meeting of these Companies are placed before the Board.Notes:1) Subsidiary/Associate/Joint Venture Companies have been categorised in line with disclosures as made in the financial statements.2) A step down Subsidiary Company of NMDC-SAIL Ltd. by the name Chhattisgarh Mining Ventures Ltd. was incorporated on 08/11/2016.

* As on 31.03.2018

SUBSIDIARIES JV COMPANIES ASSOCIATE COMPANIES

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Supply chain 102-9

The core business of our operations creates jobs, provides infrastructure, and purchases goods and services at large scale in our host countries through our supply chains. The resources we develop create a global value chain that includes exploration, development, extraction, processing, transportation, marketing and logistics, through which we generate economic value.

The company has taken the following steps to procure goods and services from MSE firms as well as MSE SC/ST entrepreneurs. NMDC has participated in the national SC/ST hub organized by MSME during January 2018. Besides NMDC has participated in National vendor development programmes organized by MSME at Hyderabad, Vijayawada, Rajahmundry, Ranchi etc. during November 2017. The Projects at Bailadila and Donimlai Sectors have also conducted meets/ programmes. NMDC has participated in 19 programmes in total during 2017-18. NMDC interacted with prospective MSE entrepreneurs encouraging them for supply of goods for various plants at Bailadila & Donimalai.

Significant changes to the organization and its supply chain

102-10

NMDC is further working towards zero waste mining by maximising utilisation of various grades of iron ore. To gainfully utilise slimes (low grade rejects), beneficiation and pellet plants have been set up in Karnataka at the mine itself. A larger scale similar plant is being set up in Bailadila sector along with 15 MTPA slurry pipeline, a green and cost effective way of iron ore transportation. Operation of pellet plant has started in 2017-18.

There has been no significant change in the location of suppliers or the structure of supply chain.

Precautionary Principle or approach

102-11

NMDC has various Policies to charter the course of the organization in the areas necessitated by external business environment and stakeholder concerns. As the formulation of a Policy takes into accounts the present and future needs and expectations of stakeholders, the needs and expectations of a large number of stake holders have been addressed. The Policies in the organization include areas like Sustainable Development, Quality, Environment, Safety, Social Accountability, Human Rights, CSR, R&R, Biodiversity, HR, Communication and Whistle Blowing.

Exploration Assessment & Estimation

Stacking

Mine Planning

Processing & Beneficiation Load and Haul

Drilling & Blasting

Evacuation Rail/ Road

Loading


NMDC Strategic Management Plan (Vision 2025)With a view to address the long term opportunities and risks, NMDC has formulated Vision 2025 and has developed six pillars of strategy wherein sustainability is one of the key pillars.

Business Strategy Globally diversified company into multiple commodities from mailny single commodity

IT Strategy From current level of IT maturity to IT enabled decision making and process control

HR Strategy Learning, Capacity building and skill development

Capital Project Strategy Deploying Significant investments in next 5-10 years

Sustainability Strategy Integrating sustainability goals into Corporate strategy aiming for beyond copliance achievement

Operations Strategy Capacity expansion with forward integration to value added businesses

A long-term strategic management plan (SMP), ‘Vision 2025’ has been formulated which envisages iron ore production capacity 67 MTPA by 2021-22. This expansion plan includes brown field expansion of existing mines and developing green field mines in partnership with Chhattisgarh Mineral Development Corporation. A joint venture of NMDC & CMDC (NCL) is in process of starting operations from Deposit-13 Iron Ore Mine in Bailadila Region.

In the financial year 2017-18, the Company has achieved success in terms of starting of construction activity of the fifth screening line in Screening Plant II and Rapid Wagon Loading System I in Kirandul Complex to increase the production and mechanised loading capacity. The clearances for the construction of the fifth screening line in Deposit 5 Screening Plant in Bacheli Complex has been obtained and the work is going to be started soon.

To augment the evacuation capacity from Bailadila sector, many projects & schemes are taken up like doubling of KK line, Rowghat-Jagdalpur line, Slurry Pipeline etc.

Besides the expansion plan, the SMP also envisaged introduction of systemic interventions in six strategic transformation areas - Business, Operations, Sustainability, Capital Projects, Human Resource and IT. Several initiatives in this respect are under implementation such as, License-to-Operate computer based model (in which all the statutory approvals will be brought under one umbrella); installation of Mines Transport Surveillance System (MTSS)- Weighbridge automation/ Virtual Fencing/ Geo Fencing/ GPS/Proximity Warning Device for dumpers/ CCTV Surveillance/ Wireless Networking at Donimalai Iron Ore Mine; driving cost reduction and other business improvement initiatives, publishing of 2nd sustainability report for 2017-18 etc.

External initiatives 102-12

NMDC has committed to excellence in environmental health and safety practices some of the list of entities/initiative to which we subscribe or endorse.

l United National Global Compact (UNGC)

l Carbon disclosure project – to track GHG emissions

l Sustainable Development Framework of Indian Bureau of Mine

l UN sustainable development Goals, Business Responsibility Report for SEBI.

NMDC has committed itself for conduct of a comprehensive cleanliness campaign in 16 villages in the surrounding areas of Bailadila Projects in Dantewada District, Chhattisgarh. Under this initiative NMDC has facilitated construction of 1662 household toilets in convergence with Swacchh Bharat Mission Grameen Scheme. The aim is to make these villages open defecation free by 2019.

NMDC alignment to Sustainable Development Goals (SDGs) mapped to Mining Industry

(Developed by The Columbia Centre on Sustainable Investment (CCSI), a joint centre of Columbia Law School and the Earth Institute at Columbia University)

(http://unsdsn.org/wp-content/uploads/2016/11/Mapping_Mining_SDGs_An_Atlas.pdf)


NMDC Alignment to SDG Goals

l Paying a substantial amount of money to National and State Exchequers.l Providing direct and indirect employment which includes marginalized population of the society.l Promoting skills development for local youths/contract labour.l Promoting local vendors /SMEs.l Food coupon to contract labour.

l Integrated Village Development Program in nearby villages.l Irrigation system created for CSR project.l Midday meal scheme for school children.

l Elaborate healthcare facilities i.e. regular check-up and treatment facilities for the workforce.l CSR initiative “Niramaya – Towards Healthy Life” for preventive and curative community healthcare.

l Building state of the art educational infrastructure, financial assistance to poor, sponsoring tribal girls for nursing courses, free transport, midday meal to poor students, ITIs, Polytechnic.

l Education City covering 5000 students to address challenges in education in the surroundings.

l NMDC promotes women empowerment with Men : Women ratio 19 : 1 despite mining industry being not favourable for women.

l A Committee for redressal of grievances of women employees in place.l Several initiatives taken towards women education and empowerment in the surroundings.

l Measures to conserve water i.e. Water Audit, physical monitoring of ground water quality & levels, check dams, Sewage Treatment Plants, improving the efficiency of motors / pumps etc.

l Water Audit carried out at all projects of NMDC and recommendations are under implementation by projects to conserve water.

l Through the flagship CSR scheme “ Payjal” , NMDC has undertaken measures to provide clean drinking water to the communities around its Projects.

l Construction of toilets in school and village.

l Energy audits are conducted which helps to identify and prioritize energy efficient technological measures and savings opportunities.

l Solar Power projects at its Office premises and units which include a 30 KW rooftop solar power generation at Head Office, 1 MW rooftop solar power generation at production units of NMDC under implementation.

l 10.5MW Wind Project registered with the United Nations Framework Convention for Climate Change (UNFCCC).

l Steady efforts to procure inputs locally and engagement with local vendors for capacity building.

l Major steps to build the employability of local population through education and training.

l NMDC is playing an active role in promoting the local industry through financial, technical and/or technological support programs for local vendors.

l NMDC is progressively building infrastructure under ‘Prakalp – Creating Infrastructure’ around the Project location since its initial days.


l NMDC is aware of the responsibility of mining companies to evaluate the impact of its activities towards potential conflict and conducts participatory and inclusive consultation practices with the local community.

l NMDC makes efforts towards improving employability of the marginalized populations, including women and young people in the area with the collaboration with Government.

l NMDC adopts life-of-mine planning by developing strategies for land use and infrastructure development which includes considering post-closure land use in closure planning strategies, and aligning any footprint expansion with anticipated community use. It also includes considering ways to minimize the mine’s footprint and building operational approaches to reduce the cost and impact of closure into early project design.

l NMDC understands that indigenous people have strong cultural, historical and local ties to land that are designated for mining activities and works towards management and protection of archaeological and cultural assets.

l NMDC is developing its townships as smart cities.

l NMDC is committed to minimizing inputs of water, energy, land, chemicals and other materials, as well as outputs of waste, effluent and emissions.

l Implementation of ISO 14001 adequately addresses the issues of improving responsible management and minimizing risks associated with use of chemicals and other waste.

l NMDC is aware of the depletion of easily extractable resource/deposits and its R&D wing is developing innovating in new technologies for the extraction of less accessible deposits.

l NMDC is progressively integrating environmental and social requirements into procurement processes with adoption of Systems i.e. ISO 14001 and SA-8000 Standard.

l NMDC measures, records, calculate and reports its GHG's every financial year.

l Corporate Policy requires increased use of renewable energy, significantly cleaner fuel sources or efficiency gains through increasing mechanization.

l NMDC is committed to Nationally Determined Contributions (INDCs).

l Suitable actions are taken to reduce the risk of climate change on account of its operations.

l NMDC operations are in land locked areas in remote forest and no impact on marine life.

l Retaining wall, check dam.

l NMDC, through applying the mitigation hierarchy, and working with key stakeholders such as state forest department, manages the impacts to protect and conserve biodiversity and ecosystem services.

l Implementing biodiversity offsets.

l At NMDC, the mitigation hierarchy helps identify measures to prevent and minimize impacts, restore impacted features, enhance existing biodiversity and understand cumulative impacts.

l NMDC in partnership with State Government agencies has been making the required efforts to preserve eco system of the surroundings.

l Consistent and ongoing engagement with local communities and other stakeholders, is a strong practice at NMDC which mitigates the risk of company-community conflict.

l NMDC adheres to the Indian Constitution, GOI Rules and United Nations declarations which have comprehensive acts, framework and principles to protect human rights.

l Respecting free, prior and informed consent (FPIC) and the special status of indigenous peoples. GOI has adequate provisions through regulations to address the same.

l As SDGs promotes the industry to collaborate and innovate around new technologies, NMDC is collaborating with Government and Institutions to develop new technologies to meet SDGs.

l NMDC is open to share scientific data with governments and society in general via publication or open data formats.

NMDC being a signatory to the ‘United Nations Global Compact, it reports its environmental performance annually under the defined principles of UNGC.


10 principles of UN Global Compact complied by NMDC1. Business should support and respect the protection of

internationally proclaimed human rights.

2. Business should ensure that they are not complicit in human rights abuses.

3. Business should uphold the freedom of association and the effective recognition of the right to collective bargaining.

4. Business should support the elimination of all forms of forced and compulsory labour.

5. Business should support the effective abolition of child labour.

6. Business should support the elimination of discrimination in respect of employment and occupation.

7. Business should support a pre-cautionary approach to environmental challenges.

8. Business should undertake initiatives to promote greater environmental responsibility.

9. Business should encourage the development and diffusion of environmentally friendly technologies.

10. Business should work against corruption in all its forms, including extortion and bribery.

In line with Listing Obligation and Disclosure Requirements (LODR) 2015, NMDC prepares Business Responsibility Report (BRR) describing the initiatives taken by the company from Environment, Social and Governance perspective vis. a vis. 9 BRR Principles.

Indian Bureau of Mines (IBM), a Government of India (GoI) body, is engaged in promotion of systematic and sustainable

development of mineral resources of the country through regulatory inspections of the mines, approval of mining plans and environment management plans to ensure minimal adverse impact on environment. IBM sustainability framework and their audit/inspection facilitate the sustainability practices of NMDC. All the major project sites have been awarded 5 start ratings, the highest ratings in the category.

Membership of associations 102-13

NMDC is a member of various trade and chambers / associations. Few of the major ones are listed below:

l Federation of Indian Mineral Industries, New Delhi (FIMI)

l Skill Council for Mining Sector (SCMS)

l Mining Engineers Association of India (MEAI)

l The Mining, Geological & Metallurgical Institute of India (MGMI)

l Indian Institute of Mineral Engineers (IIME)

l All India Management Association, New Delhi

l Federation of Indian Chamber of Commerce and Industry, New Delhi

l Standing Conference of Public Enterprises, New Delhi

l Confederation of Indian Industry (CII)

l Indian Iron and Steel Sector Skill Development Council

l Federation of Indian Export Organization, Chennai

l The Associated Chambers of Commerce & Industry of India

l Global Compact, UN


Awards & AccoladesThe details of awards received by the Company are as follows:-

1. S&P Global PLATTS Global Metals Award 2018 in the Corporate Social Responsibility category. N Baijendra Kumar, Chairman-cum-Managing Director, NMDC Limited, received the coveted award. The shortlisted 12 nominations were of renowned companies across the world. This is the first time since the inception of the awards that an Indian company has won the top.

2. NMDC has been conferred ‘SKOCH BSE Order-of-Merit Award’ for Corporate Excellence in CSR for its flagship CSR initiative ‘Siksha Sahayog Yojana’.

3. ‘Certificate of Distinction’ under CSR Programmes from UN Development Program.

4. “Dun & Bradstreet PSU Award 2017 under the sector Mining – Metals & Minerals category”.

5. Public relations Society of India (PRSI), Hyderabad chapter Award for its House Journal titled “Khanij Bharathi, Corporate Diary 2017 & Website www.nmdc.co.in.

6. Received Rajbhasha Samman during the meeting of Hindi Advisory Committee of Ministry of Steel.

7. Received ‘SKOCH - Order-of-Merit 2017 Award’ in Cyber Security Category organized by SKOCH.

8. Received “Platinum Award – 2017” from Greentech Foundation for Training Excellence in HR.

9. Received “CII – ITC Sustainability Award 2017 Commendation” for significant achievement under CSR category organized by Confederation of Indian Industry.

10. Received Golden Peacock Corporate Ethics Award 2017 organized by Institute of Directors, New Delhi.

11. NMDC has been awarded with ‘CII-ITC Sustainability Award-2017 – Commendation for significant Achievement’ under CSR category.

12. 16th Annual Greentech Safety Gold Award was conferred to Bacheli Project. The award was bestowed to B.I.O.M. Bacheli Complex in Award Presentation Ceremony.


13. NMDC Limited was conferred with prestigious ET Now CSR Leadership Award-2018 in the categories of Women empowerment and Community Development.

14. In Annual Safety Celebration of 2017, conducted by M/s J.K.Laxmi Cement, NMDC-Bacheli Complex obtained following awards.

i. First Prize in Overall Performance.

ii. First Prize in General workings.

iii. First Prize in Training & Safety Performance.

iv. Second Prize in Swachha Khadan.

v. Second Prize in 11th Safety Conference Recommendations Implementation Status.

15. NMDC’s 5 Iron ore mines received 5 star rating from Ministry of Mines, Govt. of India.

16. NMDC received ‘Governance Now PSU Award’ for Employee Productivity by Governance Now Magazine, New Delhi.

17. Bailadila Iron Ore Mine - Bacheli Complex of NMDC Limited has been awarded the first ever “Tata Steel Mining Sustainability Award” for the year 2017-18 by Federation of Indian Mineral Industries (FIMI) for outstanding work in sustainability, for exemplary work in the fields of Biodiversity Conservation, Environmental Conservation, Social Responsibility, Health & Safety and significant contribution towards Mine closure obligations.

18. Bailadila Iron Ore Mine - Bacheli Complex had been conferred “17th Annual Greentech Safety Gold Award, 2018” by M/s Greentech Foundation, New Delhi. The Project bagged the Greentech Safety Gold Award for excellent work in Safety and Health and effective implementation of Safety Management System in the mine.

Ethics and IntegrityValues, principles, standards, and norms of behaviour

102-16

Company’s philosophy

NMDC, a Navaratna Company, believes in financial prudence, customer satisfaction, transparency, accountability and commitment to values. The good governance it practices is based on its stated belief and the guidelines of the Government of India issued from time to time should go a long way in enhancing value for all those who are associated with the Company: shareholders, customers, suppliers, creditors, Government of India, State Governments, Governmental agencies/departments and the society at large. The Board of Directors have approved the Policy on Corporate Governance.

NMDC has deployed Integrated Management System (IMS) in the areas of Economic, Environment, Health and Safety and Social through Quality Management System - ISO 9001:2008; Environmental Management System - ISO 14001:2004; Occupational Health & Safety Management System - OHSAS 18001:2007 & Social Accountability - SA 8000:2008 Certification Standards. Regular quality, environment, health and safety, Social Accountability and audits are conducted by third party against International Standards,

Code of Conduct

In pursuance of SEBI (Prohibition of Insider Trading) Regulations, 2015, the Board of NMDC has approved the Internal Code of Conduct for Prevention of Insider Trading in dealing with Securities of NMDC Limited. The Code is framed with an aim that the employees of the Company and his/her Dependents shall not derive any benefit or assist others to derive any benefit from the access to and possession of Price Sensitive Information about the Company which is not in the public domain.

In compliance with Regulation 26(3) read with Schedule-V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, all the Members of the Board and senior management personnel have affirmed compliance with the Code of Conduct of Board of Directors and Senior Management for the year ended 31st March 2018.


Financial performance of the organization is reported on the basis of guidelines provided in the Company Law. Financial Systems have successfully undergone the statutory audits and internal audits. Norms and procedures prescribed for the work place safety under the Ministry of Labour & Welfare (Factories Act), the Ministry of Environment, Forests and Climate Change and Directorate General of Mines Safety are followed.

Mechanisms for advice and concerns about ethics

102-17

NMDC and its subsidiaries are committed to working with stakeholders in government, business and civil society to promote good governance, responsible use of mineral wealth and to prevent corruption. NMDC has also signed the Integrity Pact (IP) with Transparency International India (TII). Also, the

Vigilance department at NMDC guides and facilitates for impartial, fair and transparent decision making and gives priority to preventive vigilance, with proactive attitude.

NMDC being a PSU, the guidelines of Central Vigilance Commission (CVC) are applicable which provides adequate safeguard against victimization of the employees. No person has been denied access to the Audit Committee. However, in keeping with the recent direction of Ministry of Steel, Government of India, the Board of Directors approved the internal Whistle Blower Policy of NMDC. In terms of the said Policy, CVO NMDC has been designated as the Nodal Officer for implementation of Internal Whistle Blower Policy. The internal Whistle Blower Policy has also been uploaded on the intranet of the Company for information of all the employees.


Corporate GovernanceGovernance structure 102-18

A corporate governance structure combines controls, policies and guidelines that drive the organization toward its objectives while also satisfying stakeholders’ needs. For NMDC integrity, transparency, accountability, strict compliance to code of conduct, adherence to applicable regulations and law of the land are central to the way it works. NMDC is wholly committed to ethical business practices and high standards of governance. This commitment is based on the rich traditions and the organizational understanding built and reinforced over the decades of successful operations in wide areas of activities. In the framework of Public Sector Enterprise under GoI, NMDC is committed to Corporate Responsibility outlined by Government and Institutions and the same has been reinforced over the years to meet the needs and expectations of stakeholders.

NMDC recognizes that the Board is accountable to all shareholders and that each member of the Board owes his/her first duty for protecting and furthering the interest of the Company. Corporate governance adheres to the provisions as

specified in Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors is guided by the organization’s Vision, Mission and objectives. The composition of the Board of Directors comprises of full time Executive and non-Executive Directors selected through Public Sector Enterprises Board which has well-laid out selection procedure.

As on 1st March 2019, the Board of NMDC comprises of Chairman-Cum-Managing Director, four Functional Directors, two Government Nominee Directors and six Non-Executive (Independent) Directors.

The Directors present the annual report of the Company together with audited accounts for each financial year in the Annual General Meeting (AGM). The minutes are prepared for the proceedings of the AGM.

Allegiance to corporate governance agenda is ensured by a number of committees of NMDC Board like Audit Committee, Nomination, Remuneration HR Committee, Shareholders’/Investors’ Grievance/stakeholders relationship Committee.


Shri N. Baijendra Kumar, IAS Chairman-Cum-Managing Director

Shri Sandeep Tula Director (Personnel)

CMD

Independent Directors

Government Directors

Functional Directors

Dr. T.R.K. Rao Director (Commercial)

Shri P.K. Satpathy Director (Production)

Shri Amitava Mukherjee Director (Finance)

Shri Saraswati Prasad Director, NMDC Limited

Special Secretary & Financial Advisor, MoS

Smt. Rasika Chaube Director, NMDC Limited &

Additional Secretary, MoS, Ministry of Steel

CA A.K.Srivastava Director, NMDC Ltd.,

Smt.Bhagwati Mahesh Baldewa Director, NMDC Ltd.,

Shri Pradip Bhargava Director, NMDC Limited

Dr. Syamal Kumar Sarkar Director, NMDC Limited

Shri S.M. NigamDirector, NMDC Limited

Shri Ashok Kumar AnguranaDirector, NMDC Ltd

The details of Board of Directors are given below: *


* As on 31.12.2018


Delegating authority 102-19

Authority commensurate with responsibilities are delegated to the Senior Management Team of the company comprising of members of the core management team (excluding Board of Directors’) which includes all members of management one level below the Functional Directors namely all the Executive Directors, Functional and Operational Heads.

Executive-level responsibility for economic, environmental, and social topics

102-20

The dedicated Board level subcommittee on CSR & Sustainability, headed by an Independent Director, meets regularly to review progress of the major CSR and sustainability activities vis. a vis. the plans. CSR proposals, are examined by the CSR and Sustainability Committee of Directors, and their recommendations are put up for approval of the Board. A separate Monitoring & Evaluation framework has also been put in place to ensure timely completion of the planned interventions. Respective functions at corporate have been earmarked responsibility to improve the performance in their sustainability dimensions. These form the core areas for implementing relevant projects.

Consulting stakeholders on economic, environmental, and social topics

102-21

NMDC has identified the disadvantaged, vulnerable and marginalized stakeholders with the help of sociodemographic data of the community through base line surveys conducted as the part of its CSR policy objectives.

The CSR team at NMDC takes feedback from the beneficiaries to know its impact or scope for improvements if any. Also, the impact assessment carried out by a third party along with the NMDC’s CSR team for its major CSR initiatives captures the effectiveness of the community development projects and responses of the community people towards the initiative. Besides this, NMDC’s CSR Programme has been the recipient of the Awards & Accolades from the reputed industry bodies like SKOCH & CII – ITC in the year 2017.

NMDC takes all the requisite measures to ensure that its community development initiatives are successfully adopted by the community by way of initiating dialogue with the community to assess their need and by seeking a firm & written commitment from the beneficiary stakeholders during the pre-implementation consultation/need assessment process w.r.t. post implementation maintenance and up keep of the infrastructure and support to instil a sense of ownership among the beneficiaries for initiating the activity. Hence, sustainability has become an integral part of NMDC’s CSR initiatives.

The primary objective of the Company’s capital management is to maximise the shareholder value. The Company’s objectives

when managing the capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders.

NMDC believes that the first beneficiary of its success should be the community around its operations. As part of its Corporate Social Responsibility, it contributes to healthcare, education, sanitation, drinking water, infrastructure development and employable skill development. These initiatives are taken up in consultation with stakeholders, including local people and administration — which has been the reason for their success. NMDC’s model of stakeholder consultation is considered by Department of Public Enterprises as worthy of emulation by other PSEs.

Composition of the highest governance body and its committees

102-22

Nomination, Remuneration & HR Committeel Dr. Syamal Kumar Sarkar, Independent Director - Chairman

l Shri Pradip Bhargava, Independent Director

l Shri S.M. Nigam, Independent Director

l Shri Ashok Kumar Angurana, Independent Director

l Smt. Bhagwati Mahesh Baldewa, Independent Director

l Director (Personnel) as Secretary

Share Transfer Committeel Chairman-cum-Managing Director

l Director (Technical)

l Director (Finance)

l Director (Production)

l Director (Commercial)

l Company Secretary

Shareholders’/Investors’ Grievance/Stakeholders Relationship Committee

l Chairman, Audit Committee



Audit Committeel Shri S.M. Nigam, Independent Director - Chairman



l CA. A.K. Srivastava, Independent Director


Sub-Committee on CSR & Sustainabilityl Dr. Syamal Kumar Sarkar, Independent Director

l Shri A.K. Srivastava, Independent Director




l Director (Personnel)


Risk Management Committeel Director (Technical)




l Director (Personnel)

Chair of the highest governance body

102-23

Chairman-Cum-Managing Director is the Chairman of the Board of NMDC.

Nominating and selecting the highest governance body

102-24

The Chairman-Cum-Managing Director and Functional Directors are appointed by Government of India for a period of five years or till the age of superannuation or until further orders whichever is earlier. The Directors are initially appointed by the Board as Additional Directors in terms of the provisions of the Companies Act, 2013 and thereafter by the shareholders in the Annual General Meeting. The appointment may, however, be terminated by either side on three months’ notice or on payment of three months’ salary in lieu thereof.

Government Nominee Directors representing Ministry of Steel, Government of India retire from the Board on ceasing to be official of Ministry of Steel, Government of India.

Non-Executive Directors (Independent) are normally appointed for a tenure of 3 years by Govt. of India.

Conflicts of interest 102-25

There are no materially significant related party transactions’ that may have a potential conflict with the interests of Company at large.

Role of highest governance body in setting purpose, values, and strategy

102-26

The foremost sets of controls for a corporation come from its internal mechanisms which in turn are shaped and defined by external factors, law of the land, regulations and guidelines from pioneering institutes working for societies and the planet and a host of other inputs. These controls monitor the progress and activities of the organization and take corrective actions when the business goes off track. These controls include smooth operations, clearly defined reporting lines and performance measurement systems. Internal mechanisms include oversight of management, independent internal audits, structure of the board of directors into levels of responsibility, segregation of control and policy development. NMDC is committed to ensure transparency, ethical practices, disclosures and reporting to ensure strict conformance to applicable regulatory and statutory guidelines to promote ethical conduct of business operations and transactions.

The Board at its 442nd meeting held on 19.01.2012 has approved the Risk Assessment and Risk Mitigation Policy / Enterprise Risk Management (ERM) of the Company. Accordingly, the Company has constituted a Board level Risk Management Committee comprising of all Functional Directors (excluding CMD). The Company as a part of its current Risk Management Policy has identified top fourteen Risks That Matters (RTMs) and documented Mitigation Plan / Strategy for the same.

There is a Code of Conduct in place applicable to Board Members and members of Senior Management team. There were no instances of non-compliance by the Company and no imposition of any penalty or stricture on the Company by the Stock Exchanges and SEBI during last three years.

It is to be noted that safety is one of the main missions of NMDC. We have given utmost importance to safety of our employees. As a part of it, we are conducting Internal Safety Audit of one project with internal audit team of another project.

Monitoring of the implementation of the safety management plan is being carried out at Project level and corporate level meticulously to achieve high standards of Mines Safety.


Collective knowledge of highest governance body

102-27

Normally on appointment, the concerned director has been issued a letter of appointment, setting out in detail the terms of appointment, duties, responsibilities. The Directors of the company are nominated for suitable training/programms/seminars/mines visits from time to time. The Board of directors have also approved a policy on training.

The Company engages outside experts or consultants when dealing with matters of specialized nature. They hold discussions and make presentations to the Board members.

Evaluating the highest governance body’s performance

102-28

All the Directors on the Board of NMDC are appointed by Govt. of India. As desired by Ministry of Steel, Govt. of India, assessment / evaluation of performance of 6 Non-official Directors (Independent) was submitted to Ministry of Steel, Govt. of India.

Identifying and managing economic, environmental, and social impacts

102-29

NMDC has structured processes for identifying and assessing potential environmental risks. It carries out Environmental Impact Assessment of operations/activities to identify impacts on the surrounding environment and initiate mitigation measures accordingly. EIA for all its mines and industrial activities has been conducted and mitigation measures have been implemented accordingly. Regular monitoring of environmental parameters is carried out to ensure the effectiveness of the measures implemented and to comply with the SPCB and CPCB laws.

At NMDC, the mitigation hierarchy helps identify measures to prevent and minimize impacts, restore impacted features, enhance existing biodiversity and understand cumulative impacts.

The environmental management at NMDC is governed by its Corporate Environmental Policy which covers its subsidiaries and units. The Policy outlines its commitment to prevention and control of environmental pollution, conserve the natural resources, monitor and ensure compliance, continual environmental performance improvement, safeguarding the environment, educating its employees and communities about the environmental commitments and applying proven management practices to prevent or mitigate negative environmental impacts.

NMDC employs safe, scientific and environmentally friendly methods of mining and mineral processing. It strives to apply the 3R policy i.e. reduce, re-use and recycle to its waste management plan with the aim of avoiding potentially harmful environmental and social NMDC works in tandem with State

Forest Department for conservation of flora and fauna in the nearby forest area. A full-fledged study has been carried out by expert agency to assess the impact on biodiversity and suggest various recommendations for mitigating the impacts on biodiversity. Action plan has been prepared and NMDC provides substantial resources in alignment with State Forest department to implement the action plans. For all the operational units we have a biodiversity management plans, such plans are developed in all stages of a venture’s life cycle. They include actions aiming to prevent, control, mitigate and compensate the impacts of activities Plantation of local grass species over eroded land to prevent soil erosion during monsoon.

NMDC do not operate where there is a risk of direct impacts to ecosystems that could result in the extinction of an IUCN Red List Threatened Species in the wild. We do not dispose of mined waste rock or tailings into a river. Biodiversity study at all the sites helped in understanding the baseline conditions and prepare action plans on implementing the mitigation hierarchy within our area of influence to avoid, minimise and rehabilitate direct, indirect and cumulative impacts over both the short and long term impacts, during both the operational and post-closure phases.

Together with corporate governance, collective bargaining is part of an overall framework that contributes to responsible management. It is an instrument used by interested parties to facilitate collaborative efforts to enhance the positive social impacts of an organization. All employees of NMDC are covered by collective bargaining agreements.

NMDC is aware of three types of economic impacts: direct, indirect and induced. NMDC assesses different ways it can contribute to economic growth for identifying opportunities to leverage more inclusive and sustainable growth.

Effectiveness of risk management processes

102-30

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Board of Directors monitors the Company’s risk management framework.

Risk management is everyone’s responsibility and needs to form part of every decision making and monitoring process at NMDC. The Risk Management and Risk Mitigation Strategy (Risk Management Policy) thus aims at outlining the framework adopted by NMDC to assess and mitigate the impact of risks and report to the top management and the Board of Directors on the risk assessment and minimization procedures.


Department Risk Rating

Critical High Moderate Low

Commercial

Company has identified 14 critical risks

0 3 0

Finance 2 4 3

Production 1 1 1

Legal 0 1 1

Technical 1 1 0

Personnel 1 2 0

Total 14 5 12 5

Department Risk Rating

Critical High Moderate Low

Total (%) 39% 14% 33% 14%

During the year under review, four meetings of the Board level Risk Management Committee were held and mitigation plan effectiveness was mapped.

Review of economic, environmental, and social topics

102-31

NMDC’s performance on economic, environmental and social topics is reviewed regularly at the level of the Functional Directors and at the department level at corporate office. The company’s overall performance is reviewed by the Chairman & Functional Directors in the Annual Plan Review Meeting.

The management reviews HR related parameters such as attendance, productivity, training and capability effectiveness, safety, attrition, other issues related to employee relations in a structured manner. The Company has put in place various communication and feedback seeking forums.

The Board Sub-Committee on CSR and Sustainability is in place to provide strategic direction, implementation aspects, review and monitoring mechanism, and ensures that CSR movement of the Company is well on track.

Highest governance body’s role in sustainability reporting

102-32

The dedicated Board level subcommittee on CSR & Sustainability, headed by an Independent Director, meets regularly to review

progress of the major CSR activities vis. a vis. the plans. CSR proposals are examined by the CSR and Sustainability Committee of Directors, and their recommendations are put up for approval of the Board.

Communicating critical concerns

102-33

NMDC has defined methods of identifying and assessing potential environmental risks. It carries out Environmental Impact Assessment of operations/activities to identify impacts on the surrounding environment and initiate mitigation measures accordingly. EIA for all its mines and industrial activities has been conducted and mitigation measures are been implemented accordingly. Regular monitoring of environmental parameters is carried out to ensure the effectiveness of the measures implemented and to comply with the CPCB /MOEFCC guidelines.

Nature and total number of critical concerns

102-34

Though the risks to the outlook has been stated to be mounting such as, escalating trade tensions & conflicts, geopolitical concerns & mounting political uncertainty. For the emerging market & developing economies growth prospects are being impacted by factors such as rising oil prices, higher yields in the United States and market pressures on the currencies of some economies with weaker fundamentals.

A major trend that has emerged with respect to the global iron ore industry is its two-tier structure. Spread between high grade and low-grade quality ore has enlarged substantially, a trend which is likely to continue in the near future. The same is mainly on account of environmental concerns of steelmakers & more & more installation of bigger volume blast furnaces in China, leading to higher demand of premium quality iron ore.

NMDC is exposed to sharp fluctuations in demand for its products and volatility in prices. Weaker commodity price


outlook would continue to impact NMDC over the next few years till the global and domestic markets recover.

MMDR Amendment Act 2015 poses increased risks for NMDC as its major customers now have the option to acquire captive mines in mineral rich states. Two of NMDC’s major customers have already acquired iron ore mines in the state of Odisha and Karnataka through auction route. More auctions of iron ore mines are likely to come up in the near future for the end users. This is likely to adversely impact the market for NMDC over the medium to long term.

One of the major risks that NMDC is facing is the disturbances due to Maoist activities in Bailadila region. The Company is in contact with the Government agencies at all levels for support and protection of its employees and installations. The initiatives taken by the Government of Chhattisgarh and the Central Government are expected to find a solution to the risk at the earliest.

Timely enhancement of evacuation capacity in line with production plans also remains a potential risk. This could impact production and inventory levels for NMDC.

NMDC believes that Greenhouse gas emissions are one of the key concerns of “cost to environment” for modern business, it wishes to embark on low carbon growth trajectory in its operations. NMDC measures, records, calculate and reports its GHG’s every financial year under carbon disclose project. The possible mitigation measures proposed for the thrust areas of mining, mechanical and electrical services are being looked into for abatement. Also, NMDC being a signatory to the ‘United Nations Global Compact, it reports its environmental performance annually under the defined principles of UNGC.

The Board has constituted the Shareholders’/Investors’ Grievance/Stakeholders Relationship Committee comprising Chairman of Audit Committee (Chairman of the Committee) and Director (Finance) and Director (Production) as Members.

(a) Number of complaints received 34

(b) Number of complaints not solved to the satisfaction of the shareholders

Nil

(c) Number of complaints pending Nil

During the year, under SCORES, 06 investor complaints were received & resolved and no complaint was pending as on 31.03.2018.

There have been nil complaints with regard to child labour, forced labour, involuntary labour, discriminatory employment and sexual harassment in the FY2017-18. There have been nil cases of human right violation during the FY 2017-18. There is no case related to any stakeholder against the Company regarding unfair trade practices, irresponsible advertising and / or anti-competitive behaviour during the last five years and pending as of end of financial year. There were no significant disputes relating to land use with local communities in the reporting period.

Sexual harassment- 1 complaint.

There are three (3) customer complaints pending in FY 2017-18.

All the provisions of the RTI Act, 2005 are being complied with by the Company. In order to ensure timely disposal of RTI applications, PIOs have been appointed in each of NMDC’s Units. A close monitoring of the RTI applications received is done to ensure that the replies are sent in time. The details of RTI applications received in Head Office and all the Units of the Company during the period 01.04.2017 to 31.03.2018 are as follows:

Nos of applications received 226

Information provided 214

Rejected 08

Remuneration policy 102-35

NMDC being a Government Company, the terms and conditions of appointment and remuneration of Functional Directors are determined by the Government through its administrative Ministry, Ministry of Steel. Non-executive Part-time Official Directors (Independent) do not draw any remuneration. The non executive Directors are paid sitting fee as approved by the Board within the ceiling fixed under the Companies Act, 2013 and as per the guidelines issued by the Government of India.

1. The Salary of Whole Time Directors is governed by pay scales and rules of the Government. No variable incentive is being paid to Directors except Performance Related Pay being paid to them on annual basis as per DPE guidelines

2. Notice period of 3 months or salary in lieu thereof is required for severance from the service.

3. The Company has not introduced any stock option scheme.

4. Revised Pay Scales have been effected as per DPE Guidelines.

5. The remuneration does not include the provision made on actuarial valuation of retirement benefit schemes and provision made for post-retirement medical benefits as the same is not separately identifiable for individual Directors.

Process for determining remuneration

102-36

Executives: Department of Public Enterprises had constituted 3rd Pay Revision Committee to review the structure of pay scales and allowances/benefits of various categories of Central Public Sector Enterprise. The recommendation of the Committee has been submitted and guidelines are issued by DPE in this respect. The Salary for the executive employees is due for revision every ten years. Such salary revision is presently Revised & Implemented from 01.01.2017.

Stakeholders’ involvement in remuneration

102-37

Bipartite discussions have been completed for wage settlement for a period of five years with effect from January 1, 2017 between the NMDC management and the All India NMDC Workers’ Federation. Finalisation of the tripartite agreement for 10th pay revision is likely to be completed by early 2019 and will benefit more than 4500 workmen.


Annual total compensation ratio

102-38

Annual compensation of the highest-paid individual for the reporting period, as defined by total compensation: ₹.364292

The median annual total compensation for all employees, except the highest paid individual: ₹ 102392

The ratio of the annual total compensation of the highest-paid individual to the median annual total compensation for all employees: 3.56

Note: Data based on the Aprox Basic Calculation of workmen as on 31/03/2018, includes Basic, DA, Perks, HRA, PF & NMDC Pension as per the revised settlement 01/01/2017.

Percentage increase in annual total compensation ratio

102-39

There is no significant change.

Stakeholder EngagementList of stakeholder groups 102-40

Stakeholders refer to individuals and organizations who are affected by the activities of a company either directly or indirectly and who may have an influence over a company’s business. Thus, we recognize and involve all entities who have the potential to influence or get affected by our business activities and ensure that necessary actions are taken to foster mutual long term growth. Our stakeholders have contributed significantly to the overall development of the company. The important stakeholders identified are Government (Ministry of Steel) / Government Statutory / Regulatory Authorities, Investors, shareholders, business partners/JVs, Employees, Local villagers and community, Customers, Suppliers, Contractors/Service providers and Industry Associations. As a responsible corporate citizen we consider it as our responsibility to develop and retain an amicable relationship with all our stakeholders throughout the year to understand their concerns and address their issues.

Stakeholder engagement and identifying Material issues are the key to success of the Sustainable Development. The expectations and the concerns of stakeholders and the extent to which the relevant issues are addressed, play a vital role in influencing the sustainable growth of an organization. It is imperative to conduct assessment of the internal and external context of organization with respect to three pillars of sustainability viz. economic, environment and social aspects. This facilitates in taking up effective strategic initiatives to address the sustainability risks and opportunities and provide a sound basis for sustainable development initiatives. During the engagement and consultation process, the critical inputs have been obtained which has given an opportunity for introspection, identifying any gap in the business strategy and to find out ways to address them. During the reporting period, we engaged with our stakeholders on various platforms. The key concerns that emerged out of these interactions have also been compiled. The information pertaining to stakeholders is periodically updated through formal or informal channel of communication. The details of stakeholders, mode of engagement, key concerns and the subsequent actions have been detailed.

Collective bargaining agreements

102-41

Majority of the unions at project level have formed an independent apex body called All India NMDC workers federation (AINMDCWF).

Supervisors have their own association (NMDC Supervisors’ Association) at unit level and at corporate level.

Executives have their own association (NMDC Officers’ Association) at unit level and at the corporate level.

Mine Level Tripartite Safety Committee Meetings have been conducted in each of the operating mines. This meeting is conducted once in a year at project level with senior officials, Union Representatives and DGMS Officials in which Safety Performance and its appraisal are made and the recommendations are implemented.


Corporate Level Tripartite Safety Committee Meetings are being held regularly once in a year at Head Office.

With an objective to align the efforts of Senior Management Representatives and the Senior Union Representatives in NMDC Limited towards meeting our company’s goals in collaborative approach and equipping them effectively to face the future challenges together, we have started initiative of HR Conclave (AAROH) in NMDC Limited in 2014 . As a sequel, Corporate HRD

organized a strategic Orientation Workshop (HR – Conclave) for Management and Trade Union Representatives on 4th & 5th April 2017 at Kodaikanal.

Identifying and selecting stakeholders

102-42

NMDC has mapped its internal and external for the purpose of stakeholder engagements. The key categories are as below:

Government and Regulatory Authorities Shareholders/Investors Customers Suppliers Investors Employees Local Community NGO’s and other stakeholders

Approach to stakeholder engagement

102-43

NMDC engages with the identified stakeholders and communicates its major CSR initiatives in different forms and considers the feedback in planning future initiative.

Stakeholders Mode of Engagement Key Concerns NMDC ActionsShareholders/Investors Annual General Meeting,

Periodic financial reports to shareholders and investors, Interactions with financial institutions, shareholders,

Company’s performance, Shareholders surveys and meets Dividend, results, grievance resolution and other issues

Enhancing Wealth creation forshareholders, raisingequity from the institutions,infusion of capital inbusiness, communicating relevant information to stakeholders

Government (Ministry of Steel) / Government Statutory / Regulatory Authorities

Meeting with Centre and State Government, Ministry of steel, Ministry of mines, DPE, Ministry of Environment, Forests and climate change, Ministry of Corporate Affairs, Indian Bureau of Mines, Director General Mine Safety

Periodic communication and submission of various compliances to statutory authorities

Performance Report (Quarterly & Annually), Inspections

Infrastructure development, labour welfare, export and balance of trade, import taxation and anti-dumping duty, forest and Environment compliance, other applicable act like mines and mineral conservation act .

MoU with Ministry, Alignment with Government policies and priorities, various submissions,, district collaboration with local administration on peripheral development,


Stakeholders Mode of Engagement Key Concerns NMDC ActionsEmployees Industrial Relations

meetings with Union leaders, Bipartite and tripartite meetings, collective bargaining interactions with officer associations, official communications, internal magazines and e-newsletters, employee satisfaction surveys, grievance redressal forumsEmployee trainings and seminars.Organizational elebrations, Monthly Co-ordination meetings

Job Satisfaction, Wage negotiation Promotion Learning and Development Welfare , Quality of life Employee benefits and remunerations Performance management and recognition Career growth Safe and healthy condition

Enhancing employee satisfaction and wellbeing, Timely grievance resolution, c o m m u n i c a t i o n , constituting employee committees, discussion with recognized unions

Local villagers and community, including disadvantaged and marginalized

Sustainable Development initiatives and CSR activities (on going), Gramsabha and Public Hearing / Consultation (For New & Expansion projects) as and when required.

Regular meeting in the Project, Cultural, religious and social functions with community members and representatives, Need assessment interactions for CSR projects, Local community events, sports events

Livelihood options and Job Opportunities Basic amenities,

Rehabilitation and Resettlement Compensation, Financial, social and environmental impact of operation on community

Local Infrastructure development including Road, Street lighting, Drinking water, Education, Health camps, livelihood creation, women empowerment, biodiversity management, other CSR initiatives.

Customers Meeting with Industry representatives and Ministries. Meetings with Customers.

Customers visit to projects and management interactions.

Customer feedback and grievance redressal forums

Quantity and quality, Delivery Time.

Customer feedback and customer complaint resolution

Strict quality control and timely delivery, product information through website, customer satisfaction survey, product support, customer compliant resolution system.

Suppliers/vendors Interactive meetings and sessions during tenders Vendors meet, periodic vendor and supplier meets, Regional, International trade fairs, supplier relationship management

Special privilege to MSE units, Transparency & anti-corruption practices, simplified procedure & timely payment, adoption of integrity pact programme, NIT conditions.

Supply schedule.

Quality of items of supply.

Vendor development and import substitution, E-procurement & E-payment, participation in exhibitions organized by industry associations, state and central government.

Business partners/JVs Review of business, technical presentations

Review of business, technical presentations

Meetings, Official communication between the parent and joint venture entities


Key topics and concerns raised 102-44

Key topics and concerns have been listed considering all topics as per GRI standards. These topics from the basis of evaluating the materiality.

Economic Environmental SocialEconomic Performance

Energy Human Rights Assessment

Indirect economic Impacts

Water Security practise

Procurement practices

Biodiversity Supplier Social Assessment

Anti-Corruption Emissions Socio Economic Compliance

Market presence Effluents and Wastes

Marketing & Labelling

Anti-competitive behaviour

Environmental Compliance

Forced or compulsory Labour

Materials Labour/Management Relationships

Supplier Environmental assessment

Child Labour

Rights of Indigenous peopleEmployment Occupational Health and SafetyTraining and Education Diversity and Equal Opportunity Non-Discrimination Freedom of Association and collective BargainingLocal CommunitiesCustomer health and safety Customer privacy

Reporting PracticesEntities included in the consolidated financial statements

102-45

All the operations of NMDC has been included in consolidated financial statements. Please refer annual report https://www.nmdc.co.in/docs/NMDC%20AR%202018%20Web%204-9-2018.pdf

https://www.nmdc.co.in/Financial%20Information/Handlers/DownloadFile.ashx?FinancialYear=2017-18&Quadrant=Q4

Defining report content and topic Boundaries

102-46

Please Refer chapter “About the report”-page no-2

List of material topics 102-47

Materiality Assessment is the process of identifying, prioritizing and defining the aspects that are of highest importance to the stakeholders and the management of a company. The material issues have been identified which are topics that reflect most significant sustainability impacts and opportunities. Materiality, in this context, is the threshold at which an issue or interest should be reported. Focus areas have been identified representing the most significant challenges and opportunities facing the company in the area of sustainability which in turn are the foundation for the sustainability strategy.

Our materiality analysis process allows us to further define our report content by identifying material topics within these focus areas, as well as to identify key risks and opportunities outside these focus areas. Our process is informed by guidance from the Global Reporting Initiative’s standard document, applying the Report Content Principles and from Account Ability’s Five-Part Materiality Test. Our assessment of the material aspects was based on the inputs and various engagements we have had during the year with different stakeholders.

To capture perspectives of different stake holders, a structured materiality assessment exercise was carried out across all the operational locations. A formal workshop was organized at each of our operational locations where we interacted with internal as well as some external stakeholders. Apart from informal verbal discussion the stakeholders were included in a survey, inputs for which were carefully selected as a questionnaire based on our past experience and current challenges.

We gathered input from stakeholders. Based on this list we attempted to prioritise the most material aspects of the stakeholders. These aspects were then assessed qualitatively by our Management Team. Finally, we have come up with a materiality matrix that is an amalgamation of both the stakeholder perspective and management perspective. The materiality matrix determined was plotted on a 2X2 matrix and the aspects were plotted on the basis of their relevance to the management and their significant impact on the stakeholder.

This materiality assessment also included one-to-one interaction with the senior management at plants and mines as


well as at corporate office in Hyderabad. Through this interaction, we were able to determine the issues which are important from the business perspective of NMDC and issues which are of concern to our esteemed stakeholders. Through this exercise, after identification of material issues, these issues form the focus of this sustainability report and our effort is to address these issues in a transparent and informative manner under GRI Standards in “Comprehensive”. The material topics are given below along with the applicable boundary.

Sl. No.

Materiality Topic Topic Boundary (Inside or outside the boundary)

1. Economic Performance Inside

2. Indirect economic Impacts Outside

3. Procurement practices Inside

4. Anti-Corruption Inside

5. Energy Inside

6. Water Inside

7. Biodiversity Inside

8. Emissions Inside

9. Effluents and Wastes Inside

10. Environmental Compliance Inside

11. Employment Inside

12. Occupational Health and Safety Inside

13. Training and Education Inside

14. Diversity and Equal Opportunity Inside

15. Non-Discrimination Inside

16. Freedom of Association and collective Bargaining Inside

17. Local Community Outside

Low

Forced or compulsory Labour


Restatements of information 102-48

As such there is no restatement in this report from preceding report.

Changes in reporting 102-49

This is the second year for our report and NMDC decided to switch over our reporting from GRI G4 ‘Core Option’ to GRI Standards ‘Comprehensive Option”, which represents the current global best practice for reporting on a range of economic, environmental and social impacts. We have adjusted our reporting approach to reflect more accurately our company and industry. In all cases, we respond in the spirit of the GRI disclosures to provide a transparent account of our progress, achievements and shortcomings. We selected disclosures that we identify as material, representing those that reflect impacts associated with our operations around the world. We continue to evaluate issues that are material to our company and expand our disclosures.

Reporting period 102-50

Annually every Financial Year.

Date of most recent report 102-51

NMDC has published its First Sustainability Report for 2016-17, prepared as per Global Reporting Initiative (GRI) G4 framework ushering in a new resolve in the organization to take sustainable development to greater height and triple bottom line excellence.

Reporting cycle 102-52

Financial Year – 1st April to 31st March

Contact point for questions regarding the report

102-53

(Navin Dubey)(Dy. General Manager - Corporate Planning)NMDC, Khanij Bhawan, 10-3—331/A,Castle Hills, Masab Tank, Hyderabad-500028 (E-mail: [email protected] ) www.nmdc.co.in

(P.K. Satpathy)(Director Production)Director responsible forSustainability ReportingNMDC, Khanij Bhawan, 10-3—331/A,Castle Hills, Masab Tank, Hyderabad-500028

Claims of reporting in accordance with the GRI Standards

102-54

This report has been prepared in accordance with the GRI Standards: Comprehensive Option.

GRI content index 102-55

Please refer page no. 96 to 99 for GRI content Index.

External assurance 102-56

NMDC management has also decided to get this report externally assured. Accordingly, external assurance of the Report has been carried out by TUV (India) Pvt. Limited. The Independent Assurance Statement is attached in the end of the Report.


Economic

200


Global iron ore production increased to 2.40 billion tones (usable ore basis) in 2017, up from 2.35 billion tonnes in 2016. Australia continued to be highest producer with an estimated production of 880 million tonnes in 2017. India was the fourth largest iron ore producer. Average price of iron ore (62% Fe CFR China) at USD 71/t in 2017 was higher than the corresponding figure of USD 58/t in 2016. In 2018 too, average price is forecasted at $67/t.

Production of Iron Ore in India at 198 MT in FY’18 was 3.4% higher than FY’17. Exports remained at a level of 24 MT during the year FY’18, mainly due to disruption of production in Odisha & Goa. Most of the export from India was to China of low grade ore (58% Fe and below), which has lower export duty of 10%.Indian iron ore production is likely to grow in line with domestic steel production. Going forward, domestic supplies are likely to grow substantially till 2020 as non- captive miners, with their leases expiring by 2020 (as per MMDR Amendment Act, 2015), are likely to maximize production.

Economic Performance201103-1, 103-2, 103-3


NMDC is bullish on the growth prospects of India’s steel industry with its competitive advantages and the impetus being given by the government to the steel sector on the basis of envisaged growth in domestic steel demand in all key sectors, such as, infrastructure, housing, automobile, etc. It is on account of this growth potential that India’s steel industry is being viewed as ‘a bright spot’ globally. Low per capita steel consumption in the country at 63 kg/t vis-à-vis the world average of 208 kg/t also indicates the huge growth potential of the Indian steel industry.

Highest Ever production of

35.57 Million T Production

Networth increased

by 8%

Highlights

Turnover increase by 32%

PATincreaseby 47%

PBTincreaseby 44%

mining practices to enhance the productivity and quality of ore. NMDC has robust performance management system in place driven through strong leadership and duly supported by different level of management and excellent workforce. Quality management system coupled with matured practices adopted at various functions further helps in achieving the excellence in economic performance. There has been a proper review system in place at various levels of the organization helping in assessing the departmental level performance against the specified goals and targets. Top management through various review meetings including the board meeting facilitate in evaluating the performance while supporting through allocation of requisite resources.

Government of India has charted a road map under the National Steel Policy 2017, to augment India’s Steel production capacity to 300 Mtpa by 2030-31. To fulfill this vision, NMDC proposes to act as a facilitator and developer of green field steel plants by creating Special Purpose Vehicles (SPVs) in the mineral rich states of Jharkhand & Karnataka. NMDC also proposes to invest in strategic and critical raw materials which are required by our nation for long term supply security. In line with this strategy, NMDC has entered into MoUs with MIDHANI & DMRL to explore opportunities for investment in Tungsten mineral assets in India and abroad. NMDC has also signed MOU with IREL for scouting of rare earth minerals in India and abroad.

Performance

The year 2017-18 saw robust performance towards economic growth and achieved enhanced level of indices in the area of production, sales, EBIDTA, profit before tax and profit after tax. The growth over previous year under different heads, i.e. Turnover, PBT and PAT has been 32%, 44% and 47% respectively.

NMDC proposes to augment its production capacity of iron ore to 67 million tonnes by 2021-22. It has also embarked on value

Economic performance is important driver for growth, income, employment and infrastructure development for NMDC. Iron ore is feedstock to steel production which finally contributes to the nation building. NMDC strives for optimally utilize the resources and lay strong focus on sustainable and efficient


addition projects by setting up pelletization plants by utilizing slimes at Donimalai (completed) and 3.0 MTPA integrated steel plant at Jagadalpur (under advance stage of construction).

New Projects

In line with the vision plan of augmenting its Production & Evacuation capacity, technology upgradation and diversification & value-added products; NMDC has taken up many ambitious projects. The projects are at various stages of completion and some new projects have been initiated. During the financial year 2017-18, the details of Projects undertaken by NMDC are summarized as under:

l Completed Projects

- Crushing Plant & Downhill Conveyor – Kumaraswamy Iron Ore Mine

- 1.2 MTPA Pellet Plant – Donimalai

l Ongoing Projects

- Doubling of KK line between Kirandul to Jagdalpur

- Doubling of KK line between Jagdalpur to Ambagaon

- Screening Plant III – Kirandul Complex

- Additional Screening Line & up gradation of existing conveyors (at Kirandul & Bacheli)

l Projects in pipeline

- Screening Plant II – Donimalai Complex

- 15 MTPA Slurry Pipeline – Bailadila to Nagarnar & 2 Mtpa Pellet Plant at Nagarnar.

R&D projects completed in 2017-18

l Implementation of novel solutions for improving the screening efficiency of secondary screens in screening plants of Kirandul complex.

l Study on abrasive wear and frictional characteristics of liner materials used in Iron ore storage and handling

l Development of mathematical model to predict metallurgical characterization of iron ore sinter (Phase-2)

l Development of cold bonded iron ore pellets

l Process development for preparation of Silica Sol from lean grade Iron ore slimes

l Feasibility study for production of TiO2 slag from Ilmenite using Hydrogen gas as reductant followed by smelting (Phase-2)

l Pelletization studies with magnetite concentrate on banded magnetite quartz samples of Bellari district, Karnataka

l Studies on the effect of excess quantity of ultra-fines (less than 150 micron) in iron ore fines of Bailadila region on sinter properties.

Novel design ripple screen panel fitted in secondary screen of screening plant, Kirandul complex.

R&D inputs to improve efficiency and conserve waterDosing of water absorbing polymer on wet iron ore in Kirandul complex

Capacity Expansion Projects

To augment the production and to improve the quality of product mix from Bailadila Sector, the schemes like SP–III Kirandul, relocating Crushing Plant of Dep.14 & 11/C and Downhill conveyor, additional screening lines in Bacheli & Kirandul, Rapid Wagon Loading System (RWLS) are envisaged. The upcoming scheme in Donimalai Complex includes a second Screening Plant of 10.0 MTPA capacity for handling the ROM from Donimalai & Kumarswamy mines in addition to the existing Screening Plant.

Augmenting Evacuation Capacity

To augment the evacuation capacity from Bailadila sector, many projects & schemes are taken up like doubling of KK line, Rowghat-Jagdalpur new rail line, Slurry Pipeline etc. During the financial year 2017-18, Section 1 between Jagdalpur to Silakjhori, a length of 45.5 km of railway line was completed and opened for traffic. The works in other two sections are also in advanced stages. NMDC has taken up an ambitious project of laying Slurry Pipeline from Bailadila to Jagdalpur and further up to Visakhapatnam. The Capacity of the line 15 MTPA and this will be associated with facilities like beneficiation Plant at Kirandul & Bacheli, Pellet Plant at Nagarnar and Vizag.

Steel Plant Project at Nagarnar, Chhattisgarh

The progress of construction activities of steel plant in the year 2017-18 is noticeable in various fronts. At present, progress of civil work, structural and equipment erection are in


advance stage and progressing in full swing. The steel plant project is getting ready for its commissioning of various units progressively.

Pellet Plant at Donimalai

Pellet Plant in Donimalai Complex has been commissioned and PG tests were completed and the plant is in operation. NMDC has started evacuating the slimes from existing pond to make room for fresh arisings of slime as well as to beneficiate the reclaimed slime for subsequent pelletization of the rich concentrate to offer a value added product to the market. A total of 58,070 T of pellets has been produced during the period 2017-18.

Performance Parameters

There has been a significant increase in the production of iron ore, diamond and the production of pellets started in 2017-18.

Item 2015-16 2016-17 2017-18Production

Iron Ore (WMT) (in million tonnes)

28.57 34.00 35.57

Diamonds (Carats) 35,558.31 35,635.99 39,393.72

Sponge Iron (in tonnes) 6,614.26 5,474.11 -

Pellets (in tonnes) - 58,070.00

The Iron Ore production at 35.57 Million Tonnes in 2017-18 was higher by 4.62% vis a vis the production achieved in the year 2016-17.

2015-16 2016-17 2017-18

7.26 10

.4

10.7

2

9.64 11

.6

12.8

5

11.6

7

12.0

0

12.0

0

28.57

34.00 35.57

Iron Ore Production (MMt)

Kirandul Bacheli Donnamalai Total

05

10152025303540

Mill

ion

tonn

es

The diamond production at 39393.72 carat was higher by 10.55% in 2017-18 vis a vis the production achieved in 2016-17.

35558 35636

39394

33000

34000

35000

36000

37000

38000

39000

40000

2015-16 2016-17 2017-18

Cara

ts

Diamond Production (Carat)

Financial indices

There has been a substantial increase in key financial indices in 2017-18 with PBT, PAT rising by 43.9% and 47.01% respectively as compared to 2016-17.

Parameter Achievement % improvement

2016-17 2017-18Profit Before Tax (PBT) (₹ in crore)

4,293.00 6,179.00 43.90%

Profit After Tax (PAT) (₹ in crore)

2,589.00 3,806.00 47.01%

Net Worth (₹ in crore)

22,519.00 24,354.00 8.15%

Book Value per share (₹)

71.17 76.97 8.15%

Earnings per Share (₹)

7.22 12.03 66.62%

4,37

4

4,09

2

2,71

24,51

0

4,29

3

2,58

9

6,47

2

6,17

9

3,80

6

0

2000

4000

6000

8000

EBITDA Profit before Tax Profit after Tax

₹ Cr

ores

2015-16 2016-17 2017-18

EBITDA, PBT & PAT (₹ Crores)

29,11822,519 24,354

6.847.22

12.03

0

5

10

15

010000200003000040000

2015-16 2016-17 2017-18

₹

` Cr

ore

Net Worth ₹ Crore Earning per share ₹

Net Worth (₹ Crores) & Earning per share (₹)


Direct economic value generated and distributed

201-1

NMDC is the largest Iron ore producer in India and 10th largest in the world. The efficient mining process has led to NMDC being the lowest cost producer of Iron Ore in the world which is enabled by dedicated exploration wing fully equipped to undertake mineral exploration works, a well-equipped Centre for Geo-statistics, mine planning group equipped with advanced software and R&D- a center of excellence. The Mining Process at NMDC is marked by competitiveness, profitability &growth, Efficient mining and state-of-the-art technology deployment in mining, Lean ore utilization and tailings management, strong backward and forward integration, Advanced Research & Development and Business model engrained with environment and social sustainability

NMDC is committed to ensure robust financial management in the organization, thereby fueling our growth. As a business organization we aim to create value for all our stakeholders through a committed and balanced triple bottom line approach. Effective financial practices, efficient decision making process and robust control mechanism define our fiscal strategy. All the investment decisions are taken after examination of financial viability and technical analysis. Employment generation, wealth creation, ancillary development, foreign exchange generation, export promotion, skill development, environmental protection are some of the objectives pursued in our financial strategy. The efficacy of our financial management is reflected in realizing handsome profit during last thirty years.

Economic Value Added and Distributed

Particulars (₹ in Crore)

2015-16 2016-17 2017-18

1. Direct Economic Value Generated

Revenue from operations(includes export incentive)

6,457.27 8,829.64 11,614.91

Revenue from other sources

1,809.25 908.81 519.73

Total Economic Value Generated

8,266.52 9,738.45 12,134.64

2. Economic Value Distributed

Operating expenses(excluding employee wages and benefits)

3,342.80 4,559.19 5,052.86

Employee wages and benefits

646.18 885.58 1,046.42

Payments to providers of capital (*)

4,361.19 9,157.15 1,360.47

Payments to government(Tax on PBT)

i) Corporate Tax 1,379.80 1,703.78 2,373.11ii) Dividend distribution

tax887.84 331.73 276.96

Total Economic value distributed

10,617.81 16,637.43 10,109.82

Particulars (₹ in Crore)

2015-16 2016-17 2017-18

3. Economic Value Retained(1-2)

-2,351.29 -6,898.98 2,024.82

4. Additional Information on Expenditures included in operating expenses (2(a) above)

Community Investment (included in 2(a) above)

i) CSR expenses 210.09 174.18 169.37* ii)Horticulture (green

belts within and vicinity of the plants)

16.19 45.21 56.81

Total community investment

226.28 219.39 226.18

Contribution to Exchequer

Payment to exchequer

2015-16 2016-17 2017-18

Payment to central exchequer (other than TDS)

Dividend to Govt. of India

3,901 984 1,222

Service tax 34 36 15

CGST - - 94

IGST - - 130

Excise duty 1 1 0

Export duty 37 94 174

Custom duty 2 1 64

Income tax 1,570 1,638 2,259

Income tax (under protest)

- -

-

Dividend tax 993 267 341

Insurance payments to PSU’s

6 7 6

Others - 7,528 0

Taxes & duties (TDS) 112 90 129

Total (A) 6,656 10,646 4,435

Payment to state exchequer (other than TDS)

Sales tax - CST 58 79 81

Sales tax (VAT) 50 158 2

SGST - - 110

Royalty (incl. Cess) 689 1,042 2,049

Entry tax 3 2 1

Vehicle tax 1 0 1

Other taxes & duties 255 36 131

Taxes & duties (TDS) 16 15 5

Total (B) 1,071 1,332 2,381


Financial implications and other risks and opportunities due to climate change

201-2

NMDC understands and recognizes the implications that climate change would have on its business, environment and community. NMDC has framed policies around the climate change and other global environmental challenges. It stands committed in promoting greater environmental responsibility in mining and processing of minerals for sustainable development. The environmental management at NMDC is governed by its Corporate Environmental Policy. The Policy outlines its commitment to prevention and control of environmental pollution, conserve the natural resources, monitor and ensure compliance, continual environmental performance improvement, safeguarding the environment, educating its employees and communities about the environmental commitments and applying proven management practices to prevent or mitigate negative environmental impacts. NMDC strives to embark on low carbon growth trajectory in its operations. NMDC measures, records, calculates and reports its GHG’s every financial year. NMDC also participates in the Carbon Disclosure Project. The possible mitigation measures proposed for the thrust areas of mining, mechanical and electrical services are being looked into for abatement. NMDC being a signatory to the ‘United Nations Global Compact, it reports its environmental performance annually under the defined principles of UNGC.

Defined benefit plan obligations and other retirement plans

201-3

NMDC considers its employees as the most important asset of the Company and thus major steps have been taken to ensure the wellbeing of the employees post retirement by addressing the financial and medical requirements adequately.

Retirement plans in NMDC are based on both defined benefit plans and defined contribution plans. NMDC Pension Scheme has been implemented creating a financial security to its retired employees. All retirement plans currently followed are mandatory for all regular employees. Benefits and management are as per statutory Provident Funds & Miscellaneous Provisions Act, 1952, Payment of Gratuity Act, 1972 and Employee Pension Scheme, 1995. NMDC manages a large PF and Gratuity Fund. The company’s contribution to the provident fund is remitted to a separate trust based on a fixed percentage of the eligible employees’ salary. Further, the company makes good the shortfall, if any, between the return from investments of trust and the notified rate of interest on actuarial valuation basis. Gratuity payable to eligible employees is administered by a separate Trust. Payments to the trust towards contributions and other demands are made on the basis of actuarial valuation.

Under the Family Benefit Scheme, monthly payments to disabled separated employees/legal heirs of deceased employees on deposit of prescribed amount, till the notional date of superannuation and the liability is funded to NMDC Employees Superannuation Benefit Fund Trust.

Financial assistance received from government

201-4

There is no financial assistance received from the Government.

Indirect Economic Impacts203

103-1,103-2,103-3

NMDC being a responsible corporate citizen, aims to play a role in overcoming the challenges presented by society. NMDC also recognizes that being a good corporate citizen means actively working to establish a positive, long lasting relationship with the communities in it operates. Our social commitment is to create visible social benefits and to continually expand our activities to create shared value to the society. NMDC has created transparent structures and clear lines of responsibility for funding activities. Over the years this has resulted in a positive contribution towards improving people’s quality of life and creating a sustainable society in the region.

Due to NMDC’s avowed stand that the first beneficiary of its success ought to be the community in whose midst it undertakes its mining activity, Corporate Social Responsibility has been a way of life at NMDC, ingrained in its very DNA, and one which it has been consistently carrying out diligently in letter and spirit since its inception. This approach ensures that NMDC becomes a good support in their lives - from helping them in their income generation efforts, to providing basic amenities and going beyond to providing them quality education and helping them to realize their aspirations. NMDC’s CSR seeks to contribute in healthcare, sanitation, drinking water, infrastructure development and employable skill development, education. These initiatives are taken up in consultation with a wide spectrum of stakeholders, including local people and the local administration. The beneficiaries are mostly the tribal communities in the proximity of NMDC’s mines, which are in remote areas. Budget allocation for CSR activities, budget utilisation and social impact of various initiatives have been reviewed by CSR Board sub-committee on regular basis.

Infrastructure investments and services supported

203-1

NMDC has extensively engaged with the local community and its representatives ever since its inception which has led to understanding and insight into the key requirements of the local society in its journey of development. Based on this knowledge NMDC has defined the thrust and focus area to achieve impactful outcomes. The thrust areas include health, drinking water, infrastructure, education and skill development.

Further details on the Disclosure 203-2 “Significant Indirect Economic impact” have been covered under Standard 413 “Local Community”.


Procurement Practices204

103-1,103-2,103-3

With a view to create economic value addition to local surroundings, NMDC makes dedicated effort to promote local entrepreneurs to bring about capacity building in the vicinity of our operation. Due to our large mining operations coupled with newly commissioned Pellet Plant, a significant amount of different material in varied quantities. Local availability of required material will reduce logistic cost and lead time of their procurement. It will also result in reduced inventory carrying cost. Increase of industrial activity will lead to development in the vicinity of our operation and augment local economy. In view of the above, we have a strong policy towards nurturing MSE units.

NMDC considers its suppliers as strategic partners for growth and competitiveness taking the relationship that goes beyond the purely commercial sphere. NMDC also promotes the values of responsibility and sustainable development throughout their supply chain. NMDC is committed to developing a lasting business relationship with those suppliers that not only satisfy its requirements for quality, price and reliability, but that also share its principles and business approach. NMDC has strong supplier management system in place ensuring fair and transparent cooperation with suppliers. NMDC continuously communicate with the suppliers in order to uphold ethical standards and best practices provided by Government of India along the global supply chain. NMDC considers it as a true opportunity for engaging with large base of suppliers to mitigate the challenges by working synergistically. Reviews are

carried out on regular basis to mitigate the supply chain risks and expedite the procurement process.

Logistics is also the integrated management of all activities required to move materials along the supply chain, from suppliers to mining sites and ore despatch through various modes viz. road, rail and ship to the sales network. The incoming and outgoing delivery traffic in our mines as well as the distances our employees travel for work and business also affect our environmental performance through emissions, noise, and resource use. NMDC minimize the environmental effects of these transports through the use of an efficient logistics system and of rail transportation.

Proportion of spending on local suppliers

204-1

The core business of our operations creates jobs, provides infrastructure and purchases goods and services on a large scale through our supply chains. The resources we develop create a global value chain that includes exploration, development, extraction, processing, transportation, marketing and logistics, through which we generate economic value.

NMDC supports and encourages the participation of local and small vendors in procurement of goods and services. The company has taken steps to procure goods and services from MSE firms as well as MSE SC/ST entrepreneurs. NMDC has participated in the national SC/ST hub organized by MSME during January 2018. Besides NMDC has participated in National vendor development programmes organized by MSME at Hyderabad, Vijayawada, Rajahmundry, Ranchi etc. during November 2017. The Projects at Bailadila and Donimlai Sectors have also conducted meets/ programmes. NMDC has


participated in 19 programmes in total during 2017-18. NMDC interacted with prospective MSE entrepreneurs encouraging them for supply of goods for various plants at Bailadila & Donimalai.

Kirandul Bacheli Donimalai

Panna Head Office Total

108 114 135116

217 227

99 115 125

17 20 4210 16 22

350

482 551

0

100

200

300

400

500

600

2015-16 2016-17 2017-18

Nos

.

Ancillary Units (MSME/SSI) Nos

Kirandul Bacheli Donimalai

Panna Head Office Total

20

26

38

6.68 12

.15

11.3

0

19.3

9 18 16.1

1

1.27 8.

02

35.2

6

79.1

3

33.2

4 41.6

22.40 24.17

32.8

6

0102030405060708090

2015-16 2016-17 2017-18

%

% Order to Local Units (MSME/SSI)

7.63

3.86 6.

75

0.49

1.08

0.995.

14

5.4

3.55

0.34

11.9

12.8

5 21.9

6

0.42

0.82

25.50

23.6134.07

05

10152025303540

2015-16 2016-17 2017-18

Order Value to Local Units (MSME/SSI)in share ₹ Crores

Kirandul Bacheli DonimalaiPanna Head Office Total

₹ Cr

ore

Sl.No.

Description 2017-18 ₹ Crore

i Total Annual procurement (in value) (excluding NISP)

₹ 359.35

i (a) Total Annual procurement after deducting Exclusions

₹ 103.68

ii Total Value of Goods & Services procured from MSEs (including MSEs owned by SC/ST Entrepreneurs)

₹ 34.06

iii Total Value of Goods & Services procured from only MSEs owned by SC/ST Entrepreneurs

₹ 4.77

Anti-Corruption205

103-1,103-2,103-3

To eradicate corruption and to create an enabling atmosphere of mutual trust and cooperation, NMDC has its own vigilance set up working as the extended hand of Central Vigilance Commission under the leadership and guidance of a CVO appointed by Govt. of India. To assist CVO other vigilance officers are appointed from the work force of the company in consultation with CVO. Vigilance helps top management in identification & prevention of corruption, irregularities, violations & deceptions committed by employees, contractors, suppliers etc and neutralise their effect so that healthy working condition is maintained and assets of the company are protected.

NMDC Vigilance Department guides and facilitates impartial, fair and transparent decision making and gives priority to preventive vigilance, with proactive measures. Emphasis is laid on adequate checks and balances in the form of well-defined systems and procedures.

Vigilance department conducts Regular Inspections, Surprise checks, Intensive examination, sample check etc as per requirement along with complaint investigation. All high value contracts and purchases are analysed by the vigilance department. Some of them are selected for intensive examination. Selected contract/ purchase deals are also analysed during routine/ surprise checks. When any irregularity is established, suitable disciplinary action is initiated through concerned disciplinary authority. Where necessary, findings along with system improvement suggestions, are given to the management by the vigilance department.

Sl.No.

Description 2017-18 ₹ Crore

iv % of Procurement from MSEs (including MSEs owned by SC/ST Entrepreneurs) out of total procurement at Sl No. i(A)

32.86%

v % of Procurement from MSEs owned by SC/ST Entrepreneurs out of total MSE procurement at Sl No. ii

4.61%

vi Total number of Vendor Development programmes for MSEs

19


The Board of Directors at its 451st meeting held on 20.09.2012 approved the internal Whistle Blower Policy of NMDC. In terms of the said Policy, CVO NMDC has been designated as the Nodal Officer for implementation of Internal Whistle Blower Policy. The internal Whistle Blower Policy has also been uploaded on the website and intranet of the Company for information of all the employees. In terms of Whistle Blower Policy, the Screening Committee will comprise of CMD and Chairman of Audit Committee.

Operations assessed for risks related to corruption

205-1

Following studies were conducted during the review period as regards preventing undesirable practices:

1. Study of Job Rotation – Sensitive Posts.

2. Study of Procurement of Medicines

3. Study of Power Consumption in all units

Following initiatives/system improvements studies/suggestions/ recommendations were undertaken during the period:1. Based on study and consequent suggestions from Vigilance

Department, Surveillance system to monitor production and dispatches of Iron ore produced is automated in Kumaraswamy and Donimalai Projects.

2. Based on study of estate matters by Vigilance department, steps for strengthening estate matters were initiated. Process of engaging domain experts is also going on.

3. Based on study of Handling/sale of Diamond by Vigilance, SOPs was forwarded and sub committee also approved it.

4. Based on suggestions from Vigilance Department, provisions for making tendering process more transparent and accountable were made in Contracts Manual.

5. Based on study regarding deployment of hired vehicle at Kirandul by Project Vigilance, as a part of system improvement a circular was issued by the project to implement the suggestions of deploying of hired vehicle by following tendering system.

Integrity Index Development ProjectIntegrity Index Development Project initiated by CVC was taken up whole heartedly by the Organization. Integrity Index has been envisaged as a tool to facilitate internal assessment and improve performance. Considering it an ongoing activity a Senior Management Official has been nominated as IID Coordinator. Active all round participation in time bound manner by sharing necessary inputs and suggestions from time to time, as required by the consultant was done.

Communication and training about anti-corruption policies and procedures

205-2

Various programmes were conducted for awareness on vigilance matters for the employees of the Corporation. The vigilance functionaries at the projects have conducted regular training classes for the employees on the vigilance matters. Executives of Vigilance Department were nominated for training / workshops being organized in India.

The Vigilance Awareness Week 2017 was celebrated from 30.10.2017 to 04.11.2017. On the inaugural day administration of pledge to all the employees at Head Office and Units of NMDC at – Kirandul, Bacheli, Donimalai, Panna, NISP, Nagarnar, Sponge Iron Unit and Regional Offices was done. The theme for this year was “My Vision-Corruption Free India”. To create awareness among the employees and Vendors/Contractors, facility to take Integrity Pledge online was created by sending SMS and voice messages. NMDC group mobile caller tone was changed during the Vigilance Awareness Week with message to spread vigilance awareness. A Season’s Greeting Card was made with useful information related to Vigilance, Integrity pledge etc. and sent to all the employees.

Doordarshan Yadagiri telecast live interview with CVO on 01.11.2017 in connection with Vigilance Awareness Week. Also brief on the importance of the Vigilance Awareness Week and Week-long activities at NMDC aired through All India Radio, Hyderabad. Quarterly Meeting of CVOs of Steel CPSEs under the administrative control of Ministry of Steel was held on 8.9.2017 at NMDC, Hyderabad.

In order to spread awareness about Whistle Blower Policy, awareness programmes were conducted during the Vigilance Awareness Week 2017 at Projects.

Confirmed incidents of corruption and actions taken

205-3

During the period, 51 grievances were addressed in the CPGRAMS Portal. Complaints received were taken up for investigation and necessary disciplinary action wherever required was recommended.

No complaint has been received by the Company under Whistle Blower Mechanism for the year under review. In order to spread awareness about Whistle Blower Policy, awareness programmes were conducted during the Vigilance Awareness Week 2017 at Projects.


Environmental

300


Mining, without proper environmental protection measures in place,

can be a highly polluting activity which would degrade air, water

and land resources. The key element of sustainability principles is

ingrained in the organisational vision, mission, policies, management

systems, processes and performance matrix and review mechanism.

NMDC is committed to Environment protection and has deployed

Management Systems, processes, R&D, abatement technologies and

control mechanisms to minimize adverse impact on environment

due to its operations. We have practiced responsible mining to

promote environmental protection and to enhance the life of mines

by achieving right balance between exploitation of the natural

resources and maintaining the desired ecological performance

enabled by state of the art technology.


NMDC commits significant resources towards environment protection measures. The details of Environmental expenditure incurred in last 3 years are given below:

2.43

39.42

10.9110.3514.69

41.63

2.52 1.37 3.550.19 0.68 0.33

15.49

56.1656.42

0

10

20

30

40

50

60

2015-16 2016-17 2017-18

Environmental Expenditure (Crores)

Kirandul Bacheli Donimalai Panna Total

NMDC employs sustainable mining practices and production processes for all its three products viz; Iron Ore, Diamond and Sponge Iron. It ensures to implement appropriate environmental measures in all its mining operation phases to safeguard the environment in the key areas of air, water, land, noise and biodiversity. Some of the significant measures taken in this respect include recycle and reuse of water for beneficiation, construction of ameliorative measures like buttress walls, Afforestation in Bailadalia region, secondary waste treatment at Bacheli for recycling of treated water in the process, digging contour trenches and biological reclamation of rock waste dumps to minimize land erosion and, construction of check dams, effluent treatment plant, sewage treatment plant for treating effluents to avoid water pollution. MM10 All the mines have approved mine closure plans by IBM.

NMDC being a signatory to UNGC, it stands committed in encouraging the development of environment friendly technologies in line with its Corporate Environmental Policy. Also, NMDC’s research and development centre has earned rare distinction of competence of undertaking technology development mission related to efficient mineral processing.

NMDC employs safe, scientific and environmental friendly methods of mining and mineral processing. It strives to apply the 3R policy i.e. reduce, re-use and recycle to its waste management plan with the aim of avoiding potentially harmful environmental and social impacts, during both the operational and post-closure phases. NMDC’s mining sites are aims to continually research, develop and implement productivity improvement measures and waste reduction initiatives along with exploring the re-use of by- products. Different lubricants in NMDC mines are disposed off to the agencies duly authorized for recycling. It has also set its target to treat, recycle and reuse its secondary waste water from the mining operations. MM8 No artisanal and small scale mining activities take place nearby any of the projects or units of NMDC.

There is no show cause or legal notices received from CPCB and SPCB which are pending (i.e. not resolved to satisfaction) as of end of financial year. NMDC project sites are certified to Integrated Management System including Environment Management System ISO 14001 and SA-8000 and in accordance with the requirements of EMS, carries out aspect-impact studies for all the activities and operations for identification of critical activities for setting objectives and targets. The system

is audited biannually through third party auditors apart from the periodic audits carried out by certified internal auditors to verify adequacy and effectiveness of the system and to identify changes if any, required in objectives, targets and management plan. No known incidents of noncompliance in terms of environment protection and standards have been reported during this reporting year.

NMDC has been one of the earliest signatories of the United Nations Global Compact (UNGC) network and made significant progress on all the sustainable development goals (SDG) set by United Nations.

Material301

103-1,103-2,103-3

Material ConsumptionNMDC adheres to the principle of resource consumption optimization and we have achieved continual improvement in the area of consumption of various materials required for our operations.

The project wise performance of the consumption of major materials is given below:

2,21

4

2,69

8

2,84

1

2604

2699

2992

1,77

8

2,16

1

2,56

8

1,01

5

770

567

7,611 8,3278,967

02000400060008000

10000

tonn

es

Donimalai Bacheli Kirandul Panna Total2015-16 2016-17 2017-18

Explosives Consumption (t)

263

244

249.

825

9

272.

7

269.

7

189.

4

194.

5

201.

5

17.6

9

14.3

3

11.7

6

715.9 744.5726.9

0100200300400500600700800

Kilo

Litr

es

Donimalai Bacheli Kirandul Panna Total2015-16 2016-17 2017-18

Lubricants Consumption (KL)


Recycled input materials used 301-2

Not applicable as Iron Ore is not a manufactured product but a material extracted from the earth there cannot be any recycled input materials.

Reclaimed products and their packaging materials

301-3

Not applicable as Iron Ore is a primary raw material, shipped in bulk to the end users for use at their sites as such there is no possibility of using reclaimed product and their packaging materials.

Energy302

103-1,103-2,103-3

Energy has emerged as a material issue through NMDC’s materiality analysis as it not only generates GHG but also effects the bottom line of the company. Energy management has assumed a key role in sustainable and inclusive growth at NMDC. The impacts are predominantly within the organisation, mainly due to burning of fuel (diesel) for operating its fleet of heavy earth moving machinery, whereas electrical energy is used primarily for operation of its ore processing plants and to a lesser extent operation of electrical equipment, pumps, lighting and other requirements of its offices and townships.

NMDC believes in optimum consumption of its electricity, fuel oil, lubricant oil and water. It sets targets for specific

consumption of water and energy and other consumables. Energy audits for all its project sites have been conducted and the recommendations are under implementation. The energy audits also help to identify and prioritize energy efficient technological measures and savings opportunities.

At NMDC, our strategic commitment is to reduce specific energy consumption and increase renewable energy share across all the mining locations and the townships. NMDC laid strong focus on optimising the energy consumption through stricter operational control and initiated several efficiency improvement actions. We give prime importance to achieve energy savings through optimisation of our haulage fleet. Energy efficient motors, drives, pumps are installed at all the sites while idle running of equipment is significantly reduced to curtail the electricity consumption. Review of energy consumption is carried out at various levels of the organisation.

Energy consumption within the organization

302-1

Industrial Engineering Department monitors the energy consumption data and prepares reports for review to undertake improvement actions in the key identified areas. NMDC has deployed ISO 14001 across the mining locations to address environmental aspects of energy consumption. Energy Audit by expert agencies and carbon foot print studies are taken to improve organizational performance in the area of energy management and reduction of carbon footprint.

Total Energy Consumption (GJ)

Mine 2015-16 2016-17 2017-18

Fuel (Diesel)

Electricity Regeneration/ Green Energy

Total Fuel(Diesel)


Total Fuel (Diesel)


Total

Kirandul 120180 81536 8265 209981 130292 84514 9363 224169 147689 99482 3405 250576

Bacheli 150721 94119 3456 248296 170885 99182 4248 274316 170424 99447 3639 273510

Donimalai (DIOM+KIOM)

143739 75024 2905 221668 151555 107032 1498 260084 152865 105536 5388 263789

Panna 14221 10303 0 24524 14366 9802 0 24168 11064 9569 0 20633

Total 428860 260982 14627 704469 467099 300529 15109 782737 482042 314034 12432 808508


2099

81

2743

16

2505

76

2482

96

2735

10

2216

68

2600

84

2637

89

2452

4

2416

8

2063

3

704469 782737 808508

0200000400000600000800000

1000000

GJ

Kirandul Bacheli Donimalai (DIOM+KIOM)

Panna Total2015-16 2016-17 2017-18

Total Energy Consumption (GJ)

2241

69

Pellet Plant

Unit 2017-18 Energy (GJ)

Coal tonnes 2182.16 56299.7

Light Diesel Oil (LDO)

kl 672.685 24297.4

Low Sulphur High Stock Oil (LSHS)

tonnes 311.73 13404.4

Electricity Mwh 11083.6 39900.9

Total 133902.4

Energy Mix 2017

59.6%38.8%

1.5%

Diesel

Electricity

Regeneration

The breakup of energy consumption at NMDC is diesel (59.6%) and electricity (40.4%).

2015-16 2016-17 2017-18

Kirandul Bacheli Donimalai Panna Total mwh

22,6

49

23,4

76

27,6

33

26,1

44

27,5

50

27,6

24

20,8

40

29,7

31

29,3

15

2,86

2

2,72

2

2,65

8

72,49583,480 87,232

0

20000

40000

60000

80000

100000

Electrical Energy Consumption (purchased) Mwh

Mw

h

The total electricity consumption has grown steadily, the specific electricity consumption for iron ore mining has increased slightly from 2.34 kwh/t ROM in 2016-17 to 2.36 kwh/t ROM in 2017-18 due to opening and establishing 11 B and Kumarswamy mines.

2015-16 2016-17 2017-18Kirandul Bacheli Donimalai

(DIOM+KIOM)Total Iron Ore

3.13

2.26 2.

572.65

2.29

2.12

1.78 2.

48

2.442.42 2.34 2.36

0.000.501.001.502.002.503.003.50

kwh/

t RO

M

Specific Electricity Consumption (kwh/t ROM)

80.4976.46

67.47

606570758085

2015-16 2016-17 2017-18

kwh/

cara

t

Panna

Specific Electricity Consumption (kwh/carat)

In Panna there is a significant reduction in the specific electricity consumption in the last 3 years.

Specific Electricity consumption at pellet plant is 190.8 Kwh/t.

Wind Power

The company has commissioned six wind energy generators in Sep 2008 and one unit in Mar 2009 with installed capacity of 10.5 MW at a total cost of ₹ 65.55 cr.

Wind Energy Generated (GJ) Wind Energy Sold (GJ)2015-16 2016-17 2017-18 2015-16 2016-17 2017-18

Chitradurga, Karnataka

66740 79220 68880 66740 79220 68880

As the wind energy generated is sold so it is not included in GHG calculations.

Percentage of electricity generated by wind energy to total electricity consumption (%)

Unit 2015-16 2016-17 2017-18Percentage 27% 29% 22%


3,28

5

3,56

1

4,03

7

4,12

0

4,67

1

4,65

8

3,92

9

4,14

3

4,17

8

388.

7

392.

7

302.

4

11,722 12,768 13,176

02000400060008000

100001200014000

2015-16 2016-17 2017-18Kirandul Bacheli Donimalai Panna Total (Kl)

Kilo

Litr

es

Diesel Consumption (KL)

2015-16 2016-17 2017-18

Kirandul Bacheli Donimalai(DIOM+KIOM)

Total Iron Ore

0.450.34 0.38

0.42

0.39

0.36

0.340.35 0.35

0.39 0.36 0.36

0.00.10.20.30.40.5

l/t R

OM

Specific Diesel Consumption (l/t ROM)

Although the total diesel consumption has grown steadily, the specific fuel consumption for iron ore mining has decreased slightly despite increase of haul distances and quantum of uphaul due to deepening of mine workings.

2015-16 2016-17 2017-18

Panna

10.93 11.03

7.68

02468

1012

l/ca

rat

Specific Diesel Consumption (l/carat)

In Panna there is a significant reduction in the specific diesel consumption in 2017-18 over 2016-17.

Regeneration of Energy in Down Hill Conveyor

NMDC has implemented electricity regeneration in the Downhill Conveyor system at Bailadila and Donamalai. The electricity generated in the downhill conveyors is fed back into the grid, thereby reducing the draw of electricity from the main grid at its projects. When the load is conveyed from higher elevation to lower elevation, the potential energy of the material is available to the conveyor to the conveyor and thus, power is supplied to the conveyor. The power supplied by the conveyor back to the source while dropping the load is called as regeneration. When the load is dropped down over a level difference, the energy supplied to conveyor forces the motor to act as an alternator, converting mechanical power to electrical power. During this phase, the motor starts feeding current back to the source/grid. This phase is called regeneration.

Mine Unit 2015-16 2016-17 2017-18Kirandul Mwh 2296 2601 946

GJ 8265 9363 3405Rate ₹/Mwh

8290 10710 12230

Saving ₹ Crores

1.90 2.78 1.15

Bacheli MWh 960 1180 1011GJ 3456 4248 3639Rate ₹/Mwh

8290 10710 12230

Saving ₹ Crores

0.79 1.26 1.23


MWh 807 416 1497

GJ 2905 1498 5388Rate ₹ /Mwh

6150 6600 6800

Saving ₹ Crores

0.49 0.27 1.01

Total Mwh 4063 4197 3453GJ 14627 15109 12431Rate ₹/Mwh

8290 10710 12230

Saving ₹ Crores

3.36 4.49 4.22

Energy consumption outside of the organization

302-2

There is no energy consumption outside the organisation.


Energy intensity 302-3

The specific energy consumption at the project sites is seen to be improving with the implementation of few of the energy efficient measures.

2015-16 2016-17 2017-18

Kirandul Bacheli Donimalai Total

0.02

9

0.02

2

0.02

3

0.02

5

0.02

3

0.02

1

0.01

9

0.02

2

0.02

20.024 0.0225

0.000

0.005

0.010

0.015

0.020

0.025

0.030

0.035

Specific Energy Consumption (GJ/t ROM)

GJ/

t RO

M 0.023

Although the total energy consumption has grown steadily, the specific energy consumption for iron ore mining is nearly constant despite increase of haul distances and quantum of uphaul due to deepening of mine workings.

2015-16 2016-17 2017-18Panna

0.69

0.400.25

0.0

0.2

0.4

0.6

0.8

GJ/

cara

t

Specific Energy Consumption (GJ/carat)

In Panna there is a significant reduction in the specific energy consumption in the last 3 years.

Specific Energy consumption at pellet plant is 2.31 GJ/t.

Reduction of energy consumption

302-4

Solar Power Projects

With the green energy initiative of Govt. of India focusing more on renewable energies, NMDC has taken up setting up of Solar Power projects (Rooftop) at its office premises. This includes

l 30 kw rooftop solar power generation at Head Office.

l 1 MW rooftop solar power generation at production units of NMDC.

The rooftop solar power unit at Head office has been commissioned and is in operation since April 2017. Tenders for 1 MW solar power plant has been finalized.

Energy Saving Areasl Optimization of fuel consumption in dump trucks and

excavators

l Use of High capacity, efficient diesel engine for dump trucks and excavators

l Improvement of maintenance of HEMMs.

l Introduction of energy efficient motors

l Study on energy efficient dry processing techniques

l Introduction of capacitors for power factor improvement

Energy Efficient Measures - LED- Street Lights, Downlighters, Bulbs

Mine Investment (in ₹ Lakh)

Annual Savings

(MWh)

Annual Savings (in

₹ Lakhs)

Pay Back Period

Kirandul 12.59 92.00 5.70 2.2 years

Donimalai (DIOM + KIOM)

49.91 796.35 79.63 7 months

Panna 4.05 86.07 9.46 2 year Approx

Change over to Dry Processing

On 28th May 2018 NMDC signed a Research Agreement with Commonwealth Scientific and Industrial Research organization (CSIRO) Australia for research collaboration in the field of complex iron ore processing by energy efficient dry processing techniques.

Reductions in energy requirements of products and services

302-5

The bulk of NMDC’s final product is a high volume of iron ore which is a raw material for the iron and steel industry and it is a complex task to track the reduction during usage by consumer. However, it sensitizes the customers about the use of energy where ever possible.

Water303

103-1,103-2,103-3

NMDC is well aware of the criticality of the water resource and takes various measures to conserve water viz. Water audit, regular physical monitoring of ground water quality & levels, construction of check dams, construction of Sewage Treatment Plants and improving the efficiency of motors, pumps etc. In the era of Sustainable Development, NMDC is committed to take a holistic approach to understand high value water assets by considering the full scope of social, cultural, economic and environmental values at the catchment scale to identify material risks and align operational water management and engagement with communities and government. Further efforts are being made to reduce the specific water consumption through measures like secondary waste water treatment at most of the project sites which is treated, recycled and used in the process. The specific water consumption is continually improving with the implementation of water saving initiatives. ISO 14001 provides the strong platform for identifying the key projects


for reduction of water consumption and review mechanism for achieving the stated goals.

Various performance parameters on water management are shown below:

Water withdrawal by source 303-1

Total surface water withdrawal (Mm³)

Mine 2015-16 2016-17 2017-18 Source

Kirandul 0.73 0.81 0.97 Mallangir Nallah, Intake well, Bacheli source

Bacheli 2.18 1.76 1.73 Paika Nalla, Nall No 25, 19A, 19B, tunnel water and Bacheli Nalla


2.64 1.88 1.23 Narihalla Lake

Panna 0.08 0.08 0.05

Pellet Plant - - 0.07

Total 5.64 4.54 3.98

2015-16 2016-17 2017-18Kirandul Bacheli Donimalai Panna Total

0.73 0.81 0.972.18 1.76 1.73

2.641.88 1.23

0.08 0.08 0.05

5.644.54 3.98

0123456

Mm

³

Water consumption (Million m³)

2015-16 2016-17 2017-18


Total

0.10 0.08

0.09

0.22

0.15

0.130.

23

0.16

0.10

0.190.13 0.11

0.000.050.100.150.200.25

m³/

t RO

M

Specific Water cosumption (m³/t ROM)

The overall water consumption shows a steady decline over the last 3 years and consequently the specific water consumption for iron ore mining is showing a downward trend.

2015-16 2016-17 2017-18

Panne Specific Water Consumption m³/Carat

Panna

2.21 2.28

1.18

0

0.5

1

1.5

2

2.5

m³/

Cara

t

In Panna there is a significant decrease in specific water consumption in 2017-18 compared to 2016-17.

Specific water consumption at pellet plant is 1.27 m³/t. of pellet.

Water sources significantly affected by withdrawal of water

303-2

None of the water sources are significantly affected by withdrawal of water.

However as per India Water tool, baseline water stress characterised at Kirandul and Bacheli (low), Panna (medium to high) and Donimalai (high).

Location ID Latitude Longitude State Baseline Water Stress

Kirandul KRN 18° 38’ 1.00”

81° 15’ 28.19”

Chhattisgarh Low (<10%)

Bacheli BCH 18° 42’ 5.94”

81° 15’ 7.16” Chhattisgarh Low (<10%)

Donimalai DNM 15° 3’ 38.92”

76° 35’ 41.64”

Karnataka High (40-80%)

Panna PNN 24° 42’ 28.66”

80° 10’ 35.08”

Madhya Pradesh

Medium to high (20-40%)

Water recycled and reused 303-3

NMDC has seen a significant shift towards dry processing of iron ore barring a few stray cases of wet processing at Bailadila Complex in the monsoon months, thereby making the use of process water very minimal and as such the need for recycling and reuse is almost non-existent.

Biodiversity304

103-1,103-2,103-3

NMDC gives utmost importance to preservation of biodiversity where it operates. Our strategy aims to mitigate the impacts of land use, recovering and conserving the ecosystem. We have created value and improve lives through sustainable and responsible mining. We take into account relevant ecosystem services associated with flora, fauna, water and habitats in the core and buffer zone of our lease area. At NMDC, we recognize the importance of the biodiversity which bears maximum impact due to our operations. The biodiversity value is retained with no significant affected water bodies or related habitat. Our good practices involve a gamut of activities which have been undertaken for managing our natural capital. Areas of high biodiversity value outside protected areas are being maintained with regular gap plantation with indigenous species. We follow the EIA and EMP of the MoEF & CC for keeping track of biodiversity assessment. Our thrust areas include proper habitat


development for wild life in buffer zone area and ensuring canopy cover management for forest habitat development. ISO 14001 provides the strong platform for identifying the key projects for improving the biodiversity and review mechanism for achieving the stated goals.

Various steps have been planned/undertaken by NMDC to protect and restore the biodiversity are as follows:

l Effective implementation of Habitat Development Plan

l Identification of invasive species and recovery of susceptible species

l Afforestation in degraded forest area, Plantation in township for live support of wildlife.

l Gap plantation, construction of check dam, slope stabilization activities

l Management of overburden dumps

l Animal rescue centre and Artificial Nesting of Birds in project area

l Ex-situ conservation and captive breeding of herbivores

l Protection of wildlife from accidental death, vigil and Fire Protection

l Management of soil erosion control and conservation with Grassland development

l Development of water bodies, existing water shed improvement and reclamation of water schemes

l Procurement of DGPS, Satellite Imaginary, laying out of mining boundaries after every 4 years

l Improvement of fodder and pasture development

l Conservation of Tree Fern, Cyatheaarborea in Buffer area

l Development of Safety Barrier and Green Belt for Pollution Management

l Biological reclamation after back filling in the mined out pits

l Development of Herbal Garden for ex situ conservation

l Identification of invasive species and recovery of susceptible species

l Ecological monitoring and Creation of Conservation Awareness

l Wildlife Conservation & Management Cell, People Biodiversity Registers and Wildlife Awareness Programme

l R&R plan is under implementation stage which is approved by ICFRE, Dehradun.

l Establishment of Deer Park for in-situ conservation.

Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

304-1

Kirandul

Total area within Kirandul Mining Project is 1364.115 ha under three deposits adjacent to each other namely (i) Deposit – 14 (322.368 ha) ML area (ii) Deposit -14 NMZ (506.742 ha) ML area and (iii) Deposit-11B (535.005 ha) ML area.

Bacheli

Bacheli complex lies in the Survey of India topo sheet no. 65F/2 within latitude 18o32’32” North and 19o36’5” North and longitude 81o13’ & 81o14’30”. Total area within Bacheli Mining Project is 1082.899 ha under three deposits adjacent to each other namely (i) Deposit – 5 (540.05 ha) ML area (ii) Deposit - 10 (309.340 ha) ML area and (iii) Deposit-11A (535.005 ha) ML area.

Donimalai

The Donimalai Iron ore deposit with a mining lease area of 608 Ha forms a part of Narasinghapura village Panchayat in Sandur Taluk of Bellary district, Karnataka state. This deposit lies towards SE part of the Bellary - Hospet range. Donimalai Iron Ore Mine lies between the latitudes 15° 02’00” N to 15° 06’30” N and the longitudes 76° 36’00” E to 76° 38’30”E. The area falls in the Survey of India Topo Sheet 57A/12.

Panna

The actual extent of area in custody of NMDC for Diamond Mining which was allotted in the main lease (113.332 ha.) and supplementary lease (162.631 ha.) area falls in the Grid between 80˚00′ to 80˚05′ and 24˚35′ to 24˚40′. The area is right in the middle of two Protected Areas. To the South East of this area is Panna National Park with 542.67 sq. km. core and 1002.42 sq. km. buffer area and to the North West is Gangau Sanctuary with an area of 78.53 sq. km.

MM1

Land Use Revenue Area (ha)

Forest Area (ha)

Kirandul 0 1704.34

Bacheli 0 1225.69

DIOM 0 597.54

KIOM 155.17 492.33

Panna 201.945 74.01

Total 357.115 4093.91

Significant impacts of activities, products, and services on biodiversity

304-2

MM2 NMDC assigned Indian Institute of Bio Social Research and Development (IBRAD) to undertake biodiversity survey and preparation of Biodiversity Conservation Plan for

1. ML 14, 14NMZ and a part of 11B within Kirandul Complex, Dantewada District, Chhattisgarh.

2. Deposit-5, 10 and 11A within Bacheli complex, Dantewada District, Chhattisgarh.

3. 608 Ha of Donimalai Iron Ore project, Bellary District, Karnataka.

4. Diamond Mining Project, Majhgawan, Panna district, Madhya Pradesh.

The work was carried out between 2013 and 2016 and the following impacts on ecological environment was observed


which is typically attributed by operation of any mining activity in the country:

l The vegetation has been removed in areas where mining, dumping of waste rock, overburden, road formation and infrastructural facilities have been done.

l Settleable dust pollution impairs photosynthesis of grass and other species like and shrubs and also trees to some extent.

l The fauna in the vicinity of the mine have been displaced from operating mine area and had to find out new habitations away from mine site.

l Topography and landscape have changed due to creation of pits by ore mining and will lower the topography by 20 to 30 m at various places. This will bring about a permanent localized landscape alteration.

l Change in topography and landscape will have impact on drainage and in turn the entire habitat which require the environmental management plan.

Habitats protected or restored 304-3

IBRAD in their reports have suggested habitat development in a phased manner as detailed below. As all the areas are within Reserve Forest all such works are to be conducted within the prescriptions of Forest Working Plan and in consultation with and strict supervision of the Forest Department of the respective state.

Kirandul: Habitat development is being suggested to develop in 500 Ha divided into 20 annual work areas and treated annually. Total amount to be allocated for the purpose will be ₹ 13.68 crores approx.

Bacheli: Habitat development is being suggested to develop in 500 Ha divided into 20 annual work areas and treated annually. Total amount to be allocated for the purpose will be ₹ 14.23 crore approx.

Donimalai: Habitat development is being suggested to develop in 350 Ha divided into 20 annual work areas and treated annually. Total amount to be allocated for the purpose will be ₹ 4.99 crore approx.

Panna: Habitat development is being suggested to develop in 200 Ha divided into 20 annual work areas and treated annually. Total amount to be allocated for the purpose will be ₹ 2.92 crore approx.

IUCN Red List species and national conservation list species with habitats in areas affected by operations

304-4

Kirandul & Bacheli

Flora - it can be emphatically said that none of these species are in the Red Data Book of BSI or has been included under the list of Rare & Endangered, Threatened Plants. 9 species are within REET category in India.

Kirandul

Fauna: Out of total 208 species recorded, 34 species (i.e. 1 species of Lepidoptera, 21 species of Birds and 12 species of Mammals) are listed in different Schedules of Indian Wildlife (Protection) Act, 1972.

Bacheli

Out of total 34 species recorded, 6 species (i.e. 1 species of Lepidoptera, 2 species of Birds and 3 species of Mammals) are listed in different Schedules of Indian Wildlife (Protection) Act, 1972.

Donimalai

Out of total 61 fauna species recorded, 4 species (i.e. 1 species of Fishes, 1 species of Birds and 2 species of Mammals) are listed in different Schedules of Indian Wildlife Protection) Act, 1972 and IUCN Red List of Threatened Species.

Panna

Out of total 149 fauna species recorded from in and around Diamond Mine Core and Buffer zone of the study area, 115 species (i.e. 1 species of Butterfly, 13 species of Fishes, 1 species of Amphibian, 2 species of Reptiles, 78 species of Birds and 20 species of Mammals) are listed in different Schedules of Indian Wildlife Protection) Act, 1972 and IUCN Red List of Threatened Species.

Invasive speciesShrub species like Lantana camara and Eupatorium odoratum, Parthenium sp are also available in this region which are considered to be the invasive species in nearly all Indian forests as well as non-forest areas. These invasive species are also very frequently available in the core area. Availability these species in the buffer zone signifies that there is considerable anthropogenic intervention in the ecosystem which has resulted in alteration of species composition of the core as well as buffer zone.


Emissions305

103-1,103-2,103-3

Emissions, particularly GHG emissions with consequent effect on climate change, have emerged as a material topic which impacts both within the organisation and outside it. Primarily the impacts are caused by burning of fuel and use of electricity.

NMDC understands and recognizes the implications that climate change would have on its business, environment and community. NMDC has framed policies around the climate change and other global environmental challenges. It stands committed in promoting greater environmental responsibility in mining and processing of minerals for sustainable

development. NMDC believes that Greenhouse gas emissions are one of the key concerns of “cost to environment” for modern business, it wishes to embark on low carbon growth trajectory in its operations. NMDC measures, records, calculate and reports its GHG’s every financial year. The possible mitigation measures proposed for the thrust areas of mining, mechanical and electrical services are being looked into for abatement. Further, ISO 14001 provides the strong platform for identifying, evaluating and reviewing the key projects related to emission mitigation.

Carbon footprint studies have been conducted and greenhouse gas emissions (GHG) are disclosed in Carbon Disclosure Project (CDP). To curb the GHG emissions by carbon sequestration, NMDC has planted more than 35 lakh trees. During the last two financial years, NMDC has contributed ₹ 50 crores to the Hariyar Chhattisgarh Programme towards tree plantation initiative.

Afforestation Details

Mine

2015-16 2016-17 2017-18 CumulativePlants (Nos)

Area (ha)

Plants (Nos)

Area (ha)

Plants (Nos)

Area (ha) Plants (Nos)

Area (ha)

Kirandul Nil Nil 236300 120.0 10000 Gap Plantation

1776483 1231.2

Bacheli 250 1.0 15630 10.0 27450 11.2 1244137 576.3Donimalai (DIOM+KIOM)

25000 9.0 20000 7.0 82800 33.1 645800 329.5

Panna 20500 8.2 1600 0.6 3400 casualty replacement

186352 92.8

Total 45750 18.2 37230 17.6 113650 44.3 3852772 2229.8


In a mining operation, the most significant atmospheric emissions are of particulate matter from diffuse sources (fugitive emissions) caused by haulage on unpaved roads, exposed areas subject to wind, handling of loose materials and rail transport. Another source of particulate matter is the crushing and screening of ore. Mining operations use explosives regularly for blasting as well as machinery that has to be deployed for mining and vehicular movement and transportation of ore and overburden.

NMDC seeks to reduce these emissions, adopting measures such as the improvement of spray systems, testing of dust suppression products, enclosure of conveyer belts and transfer houses, wind fences, re-vegetation of slopes, and the improvement of management processes. State of the art automated atomised water sprinkling system have been installed at all conveyors to control the fugitive dust emissions.

Our endeavour to keep the generation of Particulate Matter (PM), Sulphur Dioxide (SOx) and Nitrogen Oxides (NOx) within statutory limits and we monitor these parameters on a regular basis so as to ensure that the emissions are within specified limits and standards.

NMDC is committed to continuously improve the management of atmospheric emissions, and has taken many initiatives to improve processes and adopt technologies and control systems in this area. Proper arrangements have been made to control dust emissions during loading and unloading of the raw material and finished product(s) at the sites. As far as transportation is concerned, most of the bulk materials are transported by rail.

Since ore processing involves sizeable handling, crushing, screening etc. which creates lot of pollution, NMDC uses latest technology and conveyor for proper material movement. To reduce the emissions, we have deployed water sprinkling at appropriate places. Administrative measures ensured that same workers are not exposed to the environment for long by rotational work routine of employees. The measures taken are based on the Environmental Management Plans (EMP) already prepared before commencement and enhancement of iron ore production. We ensured proper safety guards are provided to employees who are in the front line of control and directly getting the exposure to dust.

We monitor the ambient air quality in and around the mine site on a regular frequency at predetermined locations at points jointly defined with environmental department/agencies. The parameters monitored as required by regulatory authorities are Suspended Particulate Matter (SPM) - both under 10 micron and 2.5 micron, SOx and NOx. Value of the parameters are found within the limit of stipulated standards. Continuous Ambient Air Quality Monitoring Stations have been installed at different locations.

Direct (Scope 1) GHG emissions

305-1


(DIOM+KIOM)Panna Total

9867

1081

5

1094

4

1102

6

1274

2

1262

8

1109

9

1167

8

1132

7

1054

1065

820

33046 36300 35719

05000

10000150002000025000300003500040000

tCO2e

Scope 1 Emissions (tCO�e)

Indirect (Scope 2) GHG emissions

305-2


(DIOM+KIOM)Panna Total

tCO2e

1771

0

2175

1

2288

1

2143

8

2259

2

2287

3

1506

5

2461

7

2427

3

2370

2254

2201

5658371215 72228

020000400006000080000

Scope 2 Emissions (tCO�e)

The Pellet plant at Donimalai has commenced production in 2017-18 and as such there no previous GHG data.

Pellet Plant GHG emission (t) Sp. GHG emission (kg CO2e/t)

Scope 1 8109 140

Scope 2 9089 157

Total 17197 296

Other indirect (Scope 3) GHG emissions

305-3

Major contribution of Scope 3 emission is due to outbound transportation. Total GHG emission due to outbound transportation of iron ore is 512910 tonnes.

As Employees live in adjacent townships and the diesel consumed by project vehicles is accounted in fuel consumption no separate evaluation of Scope 3 emissions due to employee commuting have been undertaken.

GHG emissions intensity 305-4


(DIOM+KIOM)Total

1.371.04 1.021.060.95 0.97 0.94

1.11 1.02 0.97

0.00.51.01.5

kgCO

2e/t 1.12 0.97

Specific Scope 1 Emissions (kg CO�e/t)

0.91.01.11.2


There is steady decrease in Specific scope 1 emissions for all the particular iron ore mining sites as well as in the total Specific scope 1 emissions in comparison with 2016-17.

2015-16 2016-17 2017-18

Panna

29.63 29.8920.81

05

101520253035

kgCO

2e/c

arat

Specific Scope 1 Emissions (kg CO�e/carat)

Significant decline in Specific scope 1 emissions at diamond mining site at Panna in comparison with 2016-17.


(DIOM+KIOM)Total

kgCO

2e/t

2.45

2.09

2.132.17

1.88

1.75

1.29

2.05

2.021.88 2.00

1.96

1.801.851.901.952.002.05

0.00.51.01.52.02.53.0

Specific Scope 2 Emissions (kgCO�e/t)

Specific scope 2 emission has increased only at 1 site, apart from that all other sites as well as the total Specific Scope 2 emission has reduced in comparison with 2016-17.

66.6463.31

55.87

50

55

60

65

70

tCO

2e/c

arat

2015-16 2016-17 2017-18

Panna

Specific Scope 2 Emissions (kg CO�e/carat)

Specific scope 2 emission has reduced significantly at the diamond mining site in comparison with 2016-17.

Reduction of GHG emissions 305-5

The possible mitigation measures proposed for the thrust areas of mining, mechanical and electrical services have been looked into for abatement. Implementation of a few of the measures are showing some small but positive results.

In the year 2017-18 there is 0.05 kg CO2e/t reduction in Specific Scope 1 emissions and 0.04 kg CO2e/t reduction in Specific Scope 2 emissions in comparison with 2016-17 in the Iron ore mines. Whereas there is a 17.9% reduction in specific Scope 1 & 6.24% reduction in specific Scope 2 emissions in Diamond mines in comparison with 2016-17.

Emissions of ozone-depleting substances (ODS)

305-6

In the mining industry there is very little use of ozone-depleting substances (ODS), except for small quantities of refrigerant in kg (not considered for GHG calculations) which is tabulated below:

Refrigerant Consumption (kg)

Mine 2015-16 2016-17 2017-18Kirandul & Bacheli

20 18 20

Donimalai 7 10 10

Panna 0 0 0

Total 27 28 30

Nitrogen oxides (NOx), Sulphur oxides (SOx), and other significant air emissions

305-7

Air Quality for PM, SOx and NOx (ug/m³)

Project Site

PM10 PM2.5 SOx NOx(µg/m³) (µg/m³) (µg/m³) (µg/m³)

Standard 100 60 80 80Donimalai (DIOM & KIOM)

32-60 11-29 7.7-10.4 8.8-12.7

Bacheli 35-63 15-31 7.2-12.9 10.2-15.6Kirandul 35-66 13-49 6.2-18 8.8-16.8Panna 49-78 23-36 10.1-16.1 12.4-18.8Pellet Plant 45.65 15.2 10.6 13.25

Pellet Plant Stack Emissions (mg/Nm³)

Stack (Pellet Plant) Particulate Matter (PM)

Raw-material De-Dusting Stack 10

ESP Stack 14

Product De-Dusting Stack 8

Effluents and Wastes306

103-1,103-2,103-3

Considering that best in class environment management practices requires achievement of zero discharge, NMDC strives for the same and has taken a wide ranging measures in this direction which include construction of check dams, Effluent Treatment Plant, Sewage Treatment Plant for treating effluents from service centres, Auto shops, etc. Sewage Treatment Plant with SBR technology at Bacheli has been constructed for treatment of township domestic waste water and similar STPs are under construction at Donimalai, Kirandul also. Regular monitoring of mine effluent, workshop effluent, and domestic effluent is carried out as per Environment (Protection) Rule and reports are submitted to Statutory Bodies. ISO 14001 provides the strong platform for identifying, evaluating and reviewing the key projects related to waste minimisation, recycling and improvement in waste water quality.


Water discharge by quality and destination

306-1

Towards water pollution, the environmental measures adopted includes construction of check dams for treatment of surface runoff, tailing dams for treatment of process effluents, effluent treatment plant for treatment of industrial effluents and sewage treatment plant for treating of domestic effluents.

Particulars pH SS (mg/l)

COD (mg/l)

BOD (mg/l)

O&G (mg/l)

Total Iron

(mg/l)

Standard 5.5-9.0

100 250 30 10 3

Kirandul 6.41-7.24

27.00-32.00

48.00-66.00

12.00-18.00

Nil 0.18-0.97

Bacheli 6.19-7.58

4.00-25.00

8.00-34.00

2.00-12.00

Nil-8.00

0.35-1.60


7.39-7.78

36.00-96.00

23.00-156.00

3.80-36.00

1.00-8.40

0.01-10.00

Panna 6.15-8.52

30.00-73.00

24.00-98.00

8.00-26.00

< 1 - 2 0.30-1.36

Waste by type and disposal method

306-2

NMDC employs safe, scientific and environment friendly methods of mining and mineral processing. It strives to apply the 3R policy (reduce, re-use and recycle) to its waste management plan with the aim of avoiding potentially harmful environmental and social impacts, during both the operational and post-closure phases.

NMDC mining projects are implementing productivity improvement mechanism and waste reduction initiatives along with exploring the possibility for re-use of by-products. One of the waste reduction and mineral conservation measures is blending of low grade ore. The achievement for blending of low grade ore (less than 55% Fe) is < 16%. The same is also reviewed periodically. NMDC is further working towards zero waste mining by maximising utilisation of various grades of iron ore. To gainfully utilise slimes (low grade rejects), beneficiation and pellet plants have been set up in Karnataka at the mine itself. A larger scale similar plant is being set up in Bailadila sector along with 15 MTPA slurry pipeline, a green and cost effective way of transportation.

Reclamation of slimes for Pellet PlantThe existing screening plant at Donimalai operates on wet circuit almost throughout the year to attain the desired product quality. The tailings produced are impounded in the existing slime dam having a current inventory in the order of 6 million tons. An additional 16 million tons of slimes is likely to be generated during the expected life of mines. To tackle this, NMDC decided to evacuate the slimes from the existing pond to make room for fresh arising of slime as well as to beneficiate the reclaimed slime for subsequent pelletization of the rich concentrate to make it useable/saleable. On this basis a pellet plant of 1.2 MTPA capacity has been installed and commissioned in 2017-18.

MM3 Waste Dump ManagementSelection of dumping sites:

l Dumping area is outside the ore boundary and Ultimate Pit Limit. Thus there is no re-handling of waste.

l Closed valley as far as practical, to reduce the possibility of run-off.

l Vegetation density is less.

Control of effluents at Waste dump

l Retaining walls at the entire toe of dump have been constructed so that the dumped material does not roll down or get washed off to pollute the water-streams and down-stream forest.

l Dumps are under continuous monitoring and additional retaining walls have been constructed whenever need arises.

l Loose boulders have been compacted and covered with wire mesh to make retaining wall so that liquid effluent escapes after settling down of suspended solids. Clear water is discharged outside the lease boundary.

l Yearly repair and maintenance of the retaining wall is carried out.

Benching and sloping:

Stepping of the dump at heights not exceeding 30 m has been done with slope of individual benches less than angle of internal friction so that the dump is stable in all weather.

Geo-coir matting:

As an additional effort to stabilize the dump against wash off during heavy rainfall, geo-coir matting have been done in Waste Dump No.1. Gradually all the dumps shall be covered by geo-coir matting on maturity.

Description Unit Kirandul Bacheli DonimalaiArea covered by geo-textile

m2 0 13000 40150


The stabilization process consists of four stages i.e. terracing on the slopes of the waste dump,

laying and anchoring of geo coir mat, plantation of grass seeds /

growth of vegetation and growth of vegetation & Final

Advice of expert laboratories:

CIMFR - Central Institute of Mining and Fuel Research Dhanbad has been engaged to advise corporation on design and stabilization aspects of dumps and mine benches.

2015-16 2016-17 2017-18


Total Iron Ore

3.13 3.24 2.281.46 1.76 1.10

7.55

11.389.87

12.1516.38

13.24

02468

1012141618

Mill

ion

tonn

es

Non Hazardous Waste (Overburden) (MMt)

2015-16 2016-17 2017-18


Total Iron Ore

0.430.31

0.210.15 0.15 0.08

0.65

0.950.820.42

0.480.37

0.00.10.20.30.40.5

0.00.20.40.60.81.0

t/t

t/t

Specific Non Hazardous Waste (Overburden) (t/t)

Specific Non-hazardous waste has reduced from 0.48 to 0.37 tonnes of overburden per tonne of Iron ore.

2015-16 2016-17 2017-18

Panna

167

687

470

200400600800

m³

Panna : Non Hazardous waste - Overburden (m³)

2015-16 2016-17 2017-18

Panna Specific Waste

0.0047

0.0193

0.00120.0000

0.0050

0.0100

0.0150

0.0200

0.0250

Panna Specific Non Hazardous Waste m³/carat

The specific Non-hazardous waste has reduced from 0.193 to 0.0012 m³ of overburden per carat.

The various hazardous wastes generated and disposed/sold as per regulations in NMDC are as follows:

Haz. Waste 2015-16 2016-17 2017-18

Used Oil (KL) 200.78 335.34 196.901

Used Batteries (nos) 314 527 563

Used Filters (nos) 2330.17 2302 2124


All the hazardous wastes are sold/auctioned to the CPCB approved vendors.

Bio-medical waste:

NMDC runs four hospitals offering free medical treatment to its staff and the local communities. The bio-medical wastes are collected, handled and disposed as per the provisions of the Bio-Medical Waste (Management and Handing) Rules. The respective hospital authorities submit the required reports and returns to the prescribed authorities as per rules.

Hospitals

Bacheli - Apollo Kirundul - NMDC Ltd.Donimalai - Yashoda Panna - NMDC Ltd.

Significant spills 306-3

There are no significant spills reported.

Transport of hazardous waste 306-4

Used Oil in NMDC projects are disposed of to the agencies duly authorized for recycling. Batteries and used filters are also disposed off, as per the prescribed guidelines of the Hazardous Waste (Management, Handling & Transboundary Movement) Rules, 2008. It has also set its target to treat, recycle and reuse the secondary waste water from the mining operations.

Water bodies affected by water discharges and/or runoff

306-5

Kirandul: Every year before onset of the monsoon desilting is being done to arrest the overflow of the silt in to the Kirandul Nallah. The over flow water of all the Nallah which ultimately discharges in to the tailing dam where clear water gets over discharged into downstream. Regular water sampling is being done every year during winter period, pre-monsoon period, monsoon period and post monsoon period.

14 Numbers of Check dams were constructed across the streams flowing from the mining and other allied activities for arresting the suspended matters in the stream. The water from check dams flows through Kadampal Tailing Dam. The clear water flows out of Kadampal Tailing Dam. 7 check dams, 6 check bunds and 2 pits were desilted as a part of the effort towards prevention of water pollution by discharge of silts to streams and nallas. In 2017-18 a total of 1.65 lakh tonnes of silt was removed and stored in suitable locations to prevent their escape into water bodies.

Description Unit Kirandul Bacheli DonimalaiConstruction of Check Dams

Nos. 0 1 26

Construction of Garland Drains

m 0 0 1520

Construction of Retaining Walls

m³ 4812 28830 2900

Indian School of Mines (IIT), Dhanbad StudyThe study reveals that the high concentration of suspended solids in rivers during monsoon due to uncontrolled surface runoff from the catchment area due to erosion of exposed surface and is not due to mine water discharge directly into the streams. The study also shows that the agriculture fields are at higher elevation than the FRL of the streams / rivers. Thus, the water flowing in the rivers does not affect the agriculture fields which are in higher elevation.

Indian Council of Forestry Research and Education (ICFRE), Dehradun study

ICFRE has prepared the management plan with an indicative cost estimated for the bio-engineering of the Reclamation and Rehabilitation Plan is ₹ 1420.29 Lakhs and submitted to NMDC on 21.06.2018. The recommendations of ICFRE will be implemented to offset the sediment load.

Construction of ETP at Service Centre Deposit-11C has been started. Construction of Sewage Treatment Plant is also nearing completion.

As such there is no significant impact of water runoff/discharge from the various mines of NMDC in the nearby vicinity.

Environmental Compliance307

103-1,103-2,103-3

NMDC strives for beyond compliance performance and actively engage with local stakeholders, government bodies and institutions to obtain valuable inputs for decision making in the area of environmental conservation. This equitable commitment of NMDC with others helps conserve flora and fauna. Elaborate measures are taken to control pollution of land, water and air. The environmental management at NMDC is governed by its Corporate Environmental Policy which covers its subsidiaries and units. The Policy outlines its commitment to prevention and control of environmental pollution, conserve the natural resources, monitor and ensure compliance, continual environmental performance improvement, safeguarding the environment, educating its employees and communities about the environmental commitments and applying proven management practices to prevent or mitigate negative environmental impacts.

All the project sites as a part of impact assessment are subjected to public hearing followed by preparation of environmental management plan duly approved by MOEF. NMDC has structured processes for identifying and assessing potential environmental risks. It carries out Environmental Impact Assessment of operations/activities to identify impacts on the surrounding environment and initiate mitigation measures accordingly. EIA for all its mines and industrial activities has been conducted and mitigation measures have been implemented accordingly. Regular monitoring of environmental parameters is carried out to ensure the effectiveness of the measures implemented and to comply with the SPCB and CPCB laws. All the statutory reports


and returns are filed regularly to the concerned authorities as per requirement.

NMDC organises environment-monitoring studies on impact of mining activities on soil, air, water every year and the recommendations of the studies are implemented.

ISO 14001 provides the strong platform for identifying, evaluating and reviewing the legal compliance of the organisation for achieving compliance related to all the regulations.

Non-compliance with environmental laws and regulations

307-1

The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

The environmental management at NMDC is governed by its Corporate Environmental Policy. The Policy outlines its commitment to prevention and control of environmental pollution, conserve the natural resources, monitor and ensure compliance, continual environmental performance improvement, safeguarding the environment, educating its employees and communities about the environmental commitments and applying proven management practices to prevent or mitigate negative environmental impacts.

All emissions & wastes generated by NMDC are monitored on a regular basis and are within permissible limits as specified by CPCB/SPCB. Also, the returns are filed regularly to the statutory authorities as per requirement.

The Company has obtained Environmental Clearance for capacity expansion of Bailadila Iron Ore Mine, Deposit-10 from existing 4.2 to 6.0 MTPA on 07/07/2017. The company has also obtained all statutory clearances such as Environmental Clearance (27/04/2017), Final Forest Clearance (27/09/2017),

Consent for Establishment (17/10/2017) for setting up of 4 MTPA Iron Ore Beneficiation Plant at Bacheli. The company also obtained stage-1 Forest clearance for diversion of 83.831 Ha Forest land for proposed slurry pipeline for transportation of iron ore concentrate from Bailadila to Nagarnar covering a distance of 139 Km. The company also obtained stage-1 Forest clearances under F.C. Act, 1980 for construction of road over 2.733 Ha Forest land from Loading Plant at Bacheli to main road and approach road for Kumaraswamy iron ore mine over 5.71 Ha from MOEFCC on 12/02/2018 and 27/09/2017 respectively. The valid operating consents are available for all projects under Air and Water Acts.

The company has submitted applications in respect of 5 mining leases of Bailadila complex for obtaining forest clearances for renewal of Mining leases beyond 31/03/2020 for further period of 20 years.

Donimalai, Bailadila Deposit-5, 10, 14 and 11C obtained FIVE Star rating from IBM, Ministry of Mines.

The R&R plans of Donimalai & Kumaraswamy mines is already prepared.

ICFRE, Dehradun has been engaged for preparation of EMP and R&R plans for 3 mining leases of Kirandul complex.


Social

400


NMDC provides a conducive and harmonious work environment for employees to realize their potential and contribute to its growth. The strong commitment of employees enables the Company to overcome challenging business and economic situations and emerge stronger. We are committed to foster health, safety and career enhancement of employees by building a unique culture of collaborative working. Our employees are the most valuable resource and accordingly host of organizational measures are taken for employee benefit and wellbeing viz. financial compensation, amenities, capability building, engagement and career enhancements to facilitate realization of their best potential.

Employment401103-1, 103-2, 103-3


The management reviews HR related parameters such as attendance, productivity, training and capability building, safety, attrition, other issues related to employee relations in a structured manner. The Company has put in place various communication and feedback seeking forums.

NMDC is an equal opportunity employer and ensures that there is no discrimination against any employee on various grounds. Recruitment, placement, promotion, transfer, compensation, training and other benefits are based on the merit and competency of the individual and the business needs of the organization.

With a strong focus on talent and making no compromises on the selection process, we hire the right people for the right job. NMDC’s Human Resource agenda is primarily focused on strengthening four key areas: building a robust and diverse talent pipeline, enhancing individual and organizational capabilities for future readiness, driving greater employee engagement and strengthening employee relations further through progressive people practices. The Human Resources department helps employees enhance their performance. Efforts for skill mapping, skill assessment, performance assessment, gap analysis that enables training plan identification which is customized to each workman basis priority areas are being undertaken on a regular basis.

Employee Wellbeing

The employees of NMDC have demonstrated sincere commitment towards the organization and remained true partners in its success. NMDC has always considered employees as part of one extended family and has supported them during service as well as post-superannuation.

NMDC provides comprehensive Medical and Health care facilities to its employees and their dependants. The main objective of the Company Health Policy is “To promote and maintain a healthy work-force right from Induction to Post Retirement”. NMDC is maintaining a strong medical setup with state of the art technology. For treatment not available at NMDC Hospitals, the employees (& their dependents) are referred to Hospitals located pan-India as per rules and requirement.

For the city based employees and their dependents where NMDC does not have its own hospital, employees are provided comprehensive medical facilities in empanelled hospitals and they are also reimbursed medical expenditure as per the policy for treatment availed at non-empanelled hospitals / consultations availed in private clinics.

Employee Diversity

NMDC is of the firm opinion that diversity in the organization leads to immense benefits as people from diverse backgrounds possess unique abilities and talents which adds a great value in a large organizational context. This helps in positive impacts in work performance and work environment through superior innovative ideas and better employee engagement. The intent is to ensure that there is no discrimination in compensation, training and employee benefits, based on caste, religion, disability, gender, sexual orientation, race, colour, ancestry, marital status or affiliation with a political, religious or union

organization or majority/minority group. Given the Socio-Cultural diversity of our country, the recruitment and selection processes are geared towards enabling representation from across regions, ethnicities, religions and different social strata and in line with Government of India guidelines.

Employee Engagement

Several initiatives have been taken to ensure that the development of employees and the organization is a mutually inclusive. As a direct result of a vibrant work culture, duly supporting flexibility and learning opportunities, employees have charted out challenging career opportunities to scale up their professional ladder.

Communication with employees at various levels on a wide range of issues impacting the Company’s performance as well as those related to employees’ welfare is done in a structured manner across the Company. Mass communication campaigns are undertaken at Senior Officers’ level involving structured discussion with large group of employees. These sessions help employees to align their working with the goals and objective of the Company leading to enhanced productivity and employee’s belongingness to the company

Building a Rewarding Career

As part of Employee oriented Company there is an HR policy where the involvement of all employees in innovation, production and productive work environment are given a major thrust. Regardless of gender, caste, religion or marital status, new employees are recruited and given equal opportunities. Whenever there is requirement to change the duty hours, the management informs representatives of employees and contractual worker in advance. An employee is required to serve notice period of 3 months prior to release on resignation.

All full time employees enjoy the Benefits like Life Insurance, Health care, Disability/ invalidity coverage, Maternity Leave, Retirement Benefits etc. NMDC has provided various social benefits to its employees in the form of housing, education, civic amenities, sports & recreation and social welfare. NMDC developed full-fledged townships over the years at all its Projects locations with the modern infrastructural facilities along with premier schools, specialty hospitals, shopping malls, clubs, parks, gymnasium, stadiums etc.

Together with corporate governance, collective bargaining is part of an overall framework that contributes to responsible management. It is an instrument used by interested parties to facilitate collaborative efforts to enhance the positive social impacts of an organization. All employees of NMDC are covered by collective bargaining agreements.

Forced Labour

NMDC stands committed not to resort to any form of forced and compulsory labour. No employee is required to deposit any sum of money for employment in NMDC. Any employee joining the Company should declare that he or she is not an insolvent. Actions Appointment orders issued by the Company very specifically state the various important conditions of appointment.


Printed copies of Service Regulations and other rules are distributed to all Units for reference and use by every employee. The workmen in particular are given a copy of the certified Standing Orders precisely containing their general terms and conditions governing service conditions. The Personnel Manual is available in the Intranet site for reference. Employees are given incentives for achieving higher levels of output. Workmen have the additional facility of overtime payment for working beyond the prescribed working hours. During the year 2016-17 no form of forced or compulsory labour was resorted to.

Human Rights

We are fully committed to abide by the rules on Human Rights across our operations and this reflects in our dealing with our different stakeholders. All suppliers, contractors and vendors who undertake to provide services enter into a comprehensive formal agreement with NMDC, which contains stipulations and conditions requiring them to ensure the compliance of various applicable labour statutes in respect of their employees or workers. These include the Payment of Wage Act - 1936, the Minimum Wages Act -1948, Equal Remuneration Act - 1976, the Industrial Dispute Act - 1947, the Employees State Insurance Act - 1948, the Mines Provident Fund and Misc. Provisions Act - 1948, the Child Labour (Prohibition and Regulation) Act -1986 and the Contact Labour (Regulation & Abolition) Act -1970. NMDC ensures that the contractor’s labour is treated fairly as per the law. The contractors are advised to pay the wages to its workers through bank and settle the issues in accordance with the law. We are also committed to the principles of the United Nations Global Compact on Human Rights.

NMDC strongly believes in protection of Fundamental Rights described in the Constitution of India. There was no recorded case during the reporting year on any violation of human rights. NMDC includes human rights related clauses in its new contracts. Periodic checks are being done with respect to various suppliers/contractors on compliance of human rights.

Grievance Redressal Mechanism for Employees

NMDC has well-articulated Grievance Redressal procedures for different segments of employees which includes Executives, Non-executives, women and other categories of employees. At NMDC employees are considered as the most valuable resource of the company and all efforts are made to minimize occurrence of employees’ grievance. Wide spread awareness is created among employees regarding their rights, code of conducts and organizational commitment to fair and equitable treatment of employees. The Grievance redressal process provides a time bound mechanism for addressing grievances which are detailed below for different categories of employees. The details of complaints received and addressed through Grievance Redressal Mechanism for Employees are given below:

Employee Grievance Resolution

There was no complain / grievance under different categories of violations except for sexual harassment where 1 complaint where Departmental Enquiry for the misconduct is in progress.

Sl.No

Category No. of complaints

filed during the financial

year

No. of complaints

pending as on end

of the financial

year1 Child labour / forced

labour / involuntary labour

Nil Nil

2 Sexual harassment* 1 1

3 Discriminatory employment

Nil Nil

4 Human right violation Nil Nil

New employee hires and employee turnover

401-1

The details of new employee hires and employee turnover under different categories are shown below:

New Hires

Year Males Females Age Groups

Below 30

30-50 50-60

2015-16 266 21 187 92 8

2016-17 56 4 44 15 01

2017-18 13 1 2 10 2

Resignation

Year Males Females Age Groups

Below 30

30-50 50-60

2015-16 30 1 19 11 01

2016-17 76 4 75 3 2

2017-18 20 2 17 4 1

Benefits provided to full-time employees that are not provided to temporary or part-time employees

401-2

Benefits to full time employeesl Provident Fund (12 % of the employer’s contribution +

1.36% Administrative charges)

l Cafeteria Allowance

l Benevolent Fund

l NMDC Contributory Pension Scheme (8% of the basic)

l Leave Encashment (30 days in a year)


l Long Service Awards(On completion of 20, 25, 30, and 35 years of completed service)

l Medical benefits

l Post-Retirement Medical benefits

l Furniture Allowance

l House Building Allowance

l Scholarship for Children of Permanent employees

l Performance Related Pay

l Multipurpose Allowance

l Annual reward scheme

l Accidental Insurance Cover to all employees

l Subsidised canteens (subsidised rates for eatables)

l Gratuity (as per prevailing statutory law)

l Employee Family Benefit Scheme (EFBS)

l Parental Leave

Benefits to contract labourSpecial ReliefThe payment of special relief at the rate of ₹ 140 is being paid to contract labour working in production project per day of actual attendanceFood CouponThe payment towards food coupon is being paid at the rate of ₹ 80 per day of actual attendance to the contract labour working in production projectsEducation FacilitiesSchool uniforms and text books are provided to the children of the contract labour working in the production projectsSchool FeeReimbursement of school fees are being provided in the Project aided schoolsMedical FacilitiesThe medical facilities are provided to the contract labour along with his/her spouse and childrenLeaveSpecial leave are provided to the contract labourNight Shift FacilitiesReimbursement of tea and snacks during the night shift is provided at the rate of ₹ 50 per shift based on actual attendance. BonusA bonus amount at the rate of 20 % is paid as against the minimum eligible amount of ₹ 8.33%.

Parental leave 401-3

The parental leave has been recently introduced at NMDC in the month of August 2018 for the male employees. The parental leave consists of the existing maternity leave of 26 week for female employees and the recently introduced paternity leave of 15 days for male employees. As the parental leave provision covering both the parents is very recent, the data/information as required is not available presently.

Occupational Health and Safety

403

103-1,103-2,103-3

NMDC gives highest priority to the health and safety of its workforce as evident from its Policy, procedures, performance monitoring and elaborate training activities. In line with our policy we have developed a comprehensive health and safety management system to strive towards our goal of “Zero Accidents”.

NMDC’s Occupational Health & Safety policy includes provisions of adopting safe, scientific and environment friendly methods of mining and allied activities and firmly committing for total compliance of legal & other requirements applicable to Health & Safety; maintain the machineries in safe and excellent condition to ensure minimum impact of their operation on Health & Safety; install, operate and monitor facilities for prevention and control of air, water and noise pollution; promote occupational health & safety awareness among employees, local communities and interested parties through active communication and training; to have emergency preparedness plan in place, remain prepared through regular mock rehearsals & practices and respond effectively to all possible emergency situations.

The operations in metal mines in the country are regulated by the Mines Act, 1952, Mines Rules – 1955, Metalliferous Mine Regulations – 1961 and several other statutes framed there under. Directorate-General of Mines Safety (DGMS) under the Union Ministry of Labour & Employment (MOU&E) is entrusted to administer these statutes. NMDC complies with all the regulations and acts in a systematic manner.

The Health and Safety Governance structure is headed by CMD, NMDC and includes Head of Safety, Heads of Projects and safety officers of respective projects. Monitoring of the implementation of the safety management plan is being carried out at Project level and corporate level meticulously to achieve high standards of Mines Safety.

Salient Features of Safety Management

1. Internal Safety Organization (ISO)

2. Preparation and implementation of Risk Assessment based Safety Management Plan (SMP)

3. Standard Operating Procedure (SOP)

4. Safety Audits

5. Dump / Bench slope stability study

6. Guidelines on corrective measures

7. Adoption of State-of-the art technology at suitable geo-mining locales

8. Steps for prevention accidents in Mines

9. Mine Safety Inspection


Salient Features of Safety Management at NMDC

All the NMDC Mines including R&D Centre are accredited with Integrated Management System (IMS) i.e. comprising of Quality Management System – ISO 9001:2015; Environmental Management System – ISO 14001:2015; Occupational Health & Safety Management System – OHSAS 18001:2007 & Social Accountability – SA 8000:2014 Certification Standards. Circulation of SA 8000 guidelines to the contractors, material suppliers including canteen vendors have been done.

The Risk assessment based Safety Management Plans (SMPs) have been prepared and implemented for all the mines of NMDC and control measures suggested. These plans are prepared by multi-dimensional teams of the individual mines based on the local conditions prevailing there.

Risk assessment based site specific Standard Operating Procedures (SOP) are formulated and implemented for various mining and allied operations. Internal Safety Audits are being conducted twice in a year by Project Audit teams and the observations of the audit team are being complied to ensure safe work atmosphere. ISO team comprising of Mining, Electrical & Mechanical Executives also conduct safety audits of mining (Mine workings, HEMM & Electrical appliances) and OCSL Plant areas. Root-cause analysis of the accidents leads to directives / guidelines on corrective measures to be taken for prevention of recurrence of similar type of accidents issued by the Safety Division of each project. Six safety audits have been conducted in the year 2018. Observations by the audit team are given to the Safety Officer of the project audited for compliance and is being monitored by ISO. The records of internal safety audits reports and action taken reports are being maintained. ISO team also conducts Mining / Mechanical / Electrical audits of Projects.

Actions are identified for implementation for preventing accidents which include Formulation and implementation of Mine-specific Traffic Rules, Code of Practices for operators & staff & others, various trainings including contractual workers and various devices fitted on dumpers.

Safety Training

NMDC has its training centres in all its projects. They are equipped with infrastructure as required under Mines Vocational Training Rules. These centres cater to the needs of basic training, refresher training and training for skilled workers and also for those injured on duty. There has always been an effort to continually improve and instil a culture of safety within every employee. At NMDC, the focus is always on establishing safe working practices through comprehensive risk assessment and constructive dialogue. The company encourages safety training and re-training of workmen including contractor’s workers and supervisors through safety awareness programs, regular safety drives and safety weeks, frequent publication of posters at public and gathering places, etc. All employees are given training as per Mine Vocational Training Rules-1966 (MVTR-1966).

We have a dumper simulator for training of dumper operators. Training of Shovel, Dumper & Drill operators is being done through e- learning modules. BEML make Dumper Simulator has been installed at BIOM, Bacheli Complex. Dumper operators of

different Projects are trained on dumper simulator and a total of 32 operators were trained in the year 2018. Apart from in-house training, operators are trained at external locations also. A total of 11 shovel operators were sent for training on shovel simulator at JRD Tata training centre, West Bokaro. Procurement of i.e. one Electric Rope Shovel Simulator for BIOM, Kirandul Complex and one Hydraulic Excavator Simulator for Donimalai Complex has been initiated and by June 2019 these facilities will be commissioned by June 2019 at respective Projects.

Safety Awards received during 2018

Project Type of Award VenueDIOM Greentech Safety Platinum

Award - 2018Guhawati

BIOM, BC Greentech Safety Gold Award - 2018

Guhawati

NMDC Corporate Level

Health, Safety & Environment (HSE) by SYNNEX GROUP

Mumbai

Workers representation in formal joint management–worker health and safety committees

403-1

The company has formal management – worker health and safety committees and up to 25% of the workforce of NMDC are representing these committees.

In each mining project of NMDC sufficient number of workmen inspectors are nominated / appointed for mining operations, mechanical and electrical installations as per statutory requirements. Mine Level Tripartite Safety Committee Meetings are conducted in each of the operating mines. This meeting is conducted once in a year at project level with senior officials, Union Representatives and DGMS Officials in which Safety Performance and its appraisal are made and the recommendations are implemented. Corporate Level Tripartite Safety Committee Meetings are held regularly once in a year at Head Office. Safety Committees have been constituted in every operating mine and pit safety meetings are held every month discussing the safety matters and corrective actions related to work atmosphere.

28th Corporate Level Tripartite Safety Committee Meeting of Bailadila Iron Ore Mines / Diamond Mining Project and Donimalai Iron Ore Mine / Kumarswamy Iron Ore Mine was conducted on 23.10.2017.


Types of injury and rates of injury, occupational diseases, lost days, and absenteeism and number of work-related fatalities

403-2

Detailed investigations are carried out for all accidents to identify root causes and the counter measures for implementation to prevent recurrence. There was no fatal accident in the Company for the period under review. The key safety performance measure i.e. Man days lost per 1000 man days worked for the year 2017-18 is 0.43.

PROJECT FATAL SERIOUS REPORTABLE MINOR MANDAYS WORKED

MANDAYS LOST

SR IFR

BIOM, KC 0 1 3 2 + 1C 330954 222 0.67 2.12

BIOM, BC 0 5 9 2 340138 162 0.48 4.70

DIOM 0 0 1 0 211797 7 0.03 0.47

DMP, Panna 0 0 0 0 28781 0 0.00 0.00

Total NMDC 0 6 13 04+1C 911670 391 0.43 2.63

Note : Accident Statistics are maintained calendar year-wise

P - Permanent Employee; C - Contractual Employee;

Injury Frequency Rate

Injury Frequency Rate (IFR) = (50* No. of Fatal Accidents + No. of Serious Accidents + No. of Reportable Accidents + No. of Minor Accidents) *106/ Total Man-days Worked.

2015-16 2016-17 2017-18


Total NMDC

0.581.16

2.12

3.41

1.68

4.70

1.18 0.840.470.00 0.00 0.00

1.83 1.24

2.63

0.00.51.01.52.02.53.03.54.04.55.0

Injury Frequency Rate (Nos of accidents per million manhours worked)

Severity Rate

Severity Rate (SR) is defined as Mandays Lost per 1000 Mandays worked.

0.12

0.31

0.670.69

0.23

0.48

0.100.02 0.030.00 0.00 0.00

0.340.20

0.43

0.00.10.20.30.40.50.60.70.8

Severity Rate(Mandays lost per 1000 mandays Worked)

2015-16 2016-17 2017-18


Panna Total NMDC

Workers with high incidence or high risk of diseases related to their occupation

403-3

NMDC strives to ensure that workers are not exposed to occupational hazards that negatively affect their health. Occupational Health Services have been provided with adequate manpower and infrastructure and are functioning in full-fledged manner at all the projects, headed by Qualified Doctors trained in OHS at Central Labour Institute, Mumbai. Periodical Medical Examination under statute is carried out regularly in all the projects. Initial & Periodical Medical Examination under statute is carried out regularly in all the projects, with a planned programme.

Kirandul: Overall it was observed that the 8 hours of Time Weighted Average permissible limit for respirable dust were within the limits prescribed by DGMS, i.e. 3 mg/m3 (as per MMR 124) except only one area dust location (T6 Motor room (Deposit 11C)).

A total of seven samples were analysed for free silica (SiO2) content by Standard Analytical Procedures with Fourier Transform Infrared spectrophotometer (FTIR). All seven samples were within the limit of 5% as prescribed by DGMS.

The employees of NMDC don’t have high risk for any specified diseases. The regular medical examination of the employees help us in achieving our objectives towards occupational health of the employees.


Initial & Periodical Medical Examinations of Employees

Initial & Periodical Medical Examinations of Employees (Permanent & Contractual) is being carried out as per the statute. Project wise, number of Initial / Periodical Medical Examinations of employees for the year 2018 is given below.

Sl.No.

Project Initial Medical Examination Periodical Medical Examination

Departmental Contractual Departmental Contractual1 BIOM, KC 90 199 181 NIL

2 BIOM, BC 84 54 374 NIL

3 DIOM/KIOM NIL 462 132 44

4 DMP, Panna NIL NIL 10 20

5 Total NMDC 174 715 697 64

Health and safety topics covered in formal agreements with trade unions

403-4

l Achieving zero accident rate in all projects.

l Behavioural based safety trainings are to be conducted for all the employees (executives + workmen) every year.

l Senior workmen are to be included in the audit team for conducting the safety audits of projects.

l International standards are to be followed in ergonomics for ensuring safe & healthy working conditions.

Training and Education404

103-1,103-2,103-3

NMDC has consistently fostered a culture that rewards continuous learning, collaboration and talent for the organization to be future-ready and to meet the challenges posed by ever- changing market realities. In order to continue to grow and thrive in the


competitive marketplace, we have developed a strong culture of learning — where executives and workmen are supported and encouraged to constantly hone and build their skills and competencies. Combining formal learning with vigorous on-the job development, coaching and feedback, the Competencies and Skills of Executives and Workmen are enhanced to result in improved performance. This culture of learning keeps the organization relevant, agile and ahead of the competition. The training programs are custom designed to meet the desired objective in an effective manner. The vital strategic resource i.e. Human Resource is thus harnessed to meet the organizational challenges.

NMDC has taken initiatives which include core programmes covering various aspects of HR i.e. Leadership, Capability Enhancement and Skill Development along with customized programs that address diverse skill enhancement needs at various levels of the organization. These programmes cover not just functional competencies but behavioural inputs as well, to ensure comprehensive development of the human resources. Training is delivered both internally and through external bodies to meet the specific requirements of roles or to target professional development. Such training ensures that employees are aware of their personal and Company obligations related to their workplace, safety and environment standards, as well as industry and international standards.

Training Performance

l HRD has organized 22 Nos of Customised In House Training Programmes covering 584 Executives during 2017-18, 177 Nos of External Training Programs covering 505 executives on various subjects and 20 Nos of Executives were sent abroad for Foreign Training Programs / AMP.

Leadership Developmentl To develop leaders at various levels, 98 executives of

different levels have undergone one week long training such as Advanced Leadership Program and Advanced Management Program in the centers of excellence like IIM Raipur, ISB Hyderabad and ASCI Hyderabad.

l For creating a sustainable leadership pipeline at Mid-Level Managerial cadre through “High Potential Executive Programme (HI-PO) undertaken for AGMs/DGMs.

l Identified 40 Hi-potential executives out of 258 in the level of AGM & DGM which is a part of Bhavishya Nirman initiative and trained them in different phases to groom them as future leaders. They took up specific projects within their area as a part of this training, which was then presented to top management. The identified executives completed this Program with Action Learning Projects, 10 days Class Room Program under the guidance of senior executives as coaches.

l With an objective to align the efforts of senior management Representatives and the Senior Union Representatives in NMDC Limited towards meeting our company’s goals in collaborative approach and equipping them effectively to face the future challenges together, we have started initiative of HR Conclave (AAROH) in NMDC Limited in 2014 . Subsequently, a strategic Orientation Workshop (HR – Conclave) for Management and Trade Union Representatives was organized on 4th & 5th April 2017 at Kodaikanal.

l A Learning Intervention of one week duration on “Leadership”, “Change Management” and “Strategic Thinking” were organized from 3rd to 7th July 2018 at ISB Hyderabad covering 24 Nos. of NMDC Top Management Executives.

Average hours of training per year per employee 404-1

Training Mandays

By Gender By Employee CategoryUnit Male Female Total Executive JO Workmen Total

HO 1705 156 1861 1776 41 44 1861

Bacheli 5899 178 6077 1635 298 4144 6077

Kirandul 4245 39 4284 697 415 3172 4284

Donimalai 4056 30 4086 714 395 2977 4086

Panna 698 8 706 167 12 527 706

NISP 502 35 537 283 0 254 537

SIU 310 30 340 69 39 232 340

Total 17415 476 17891 5341 1200 11350 17891


Employees Trained

By Gender By Employee CategoryUnit Male Female Total Executive JO Workmen Total

HO 205 27 232 212 7 13 232

Bacheli 776 45 821 104 57 660 821

Kirandul 842 6 848 121 67 660 848

Donimalai 752 8 760 97 46 617 760

Panna 164 2 166 32 3 131 166

NISP 215 11 226 81 0 145 226

SIU 99 10 109 23 13 73 109

Total 3053 109 3162 670 193 2299 3162

2015-16 2016-17 2017-18

3651 3511 3162

2129

9

1897

0

1789

1

5773 5572 5382

3.693.40 3.32

3.003.203.403.603.80

05000

10000150002000025000

Training Details

EmployeesTrained

TrainingMandays

TotalEmployees

Mandays /Emp

Contract LabourUnit Men Training

Man-daysWomen Training

Man-daysTOTAL Training

Man-days

HO 0 0 0 0 0 0

Bacheli 366 1098 68 204 434 1302

Kirandul 564 2256 86 258 650 2514

Donimalai 487 1705 0 0 487 1705

Panna 0 0 0 0 0 0

NISP 0 0 0 0 0 0

SIU 0 0 0 0 0 0

Total 1417 5059 154 462 1571 5521

Programs for upgrading employee skills and transition assistance programs

404-2

The percentage of employees given Skill Upgradation Training for the FY 2017-18:

Sl. No.

Particulars Skill Upgradation Training (%)

1 Permanent Employees 40.66

2 Permanent Women Employees 7.66

3 Casual/Temporary/Contractual Employees 6.90

l Details of skills and transition assistance programs (training on account of promotion/transfer etc.) required.


Basic & Refresher Training of employees for the year 2018

l Basic & Refresher Training of Employees (Permanent & Contractual) are being carried out as per the statute. Project wise, number of Basic / Refresher Training of employees for the year 2018 is given below:

SlNo.

Project Basic Training Refresher Training

Departmental Contractual Departmental Contractual

1 BIOM, KC 90 288 136 NIL

2 BIOM, BC 58 418 236 NIL

3 DIOM/KIOM NIL 462 155 44

4 DMP, Panna NIL 45 10 NIL

5 Total NMDC 148 1213 537 44

Percentage of employees receiving regular performance and career development reviews

404-3

The Performance of all Executives & Non-Executives is managed through Online Performance Management System (PMS). The training needs are mutually identified by the employee & his reviewer.

Diversity and Equal Opportunity

405

103-1,103-2,103-3

NMDC is of the firm opinion that diversity in the organization leads to immense benefits as people from diverse backgrounds possess unique abilities and talents which adds a great value in a large organizational context. This helps in positive impacts in work performance and work environment through superior innovative ideas and better employee engagement. The intent is to ensure that there is no discrimination in compensation, training and employee benefits, based on caste, religion, disability, gender, sexual orientation, race, color, ancestry, marital status or affiliation with a political, religious or union organization or majority/minority group. Given the Socio-Cultural diversity of our country, the recruitment and selection processes are geared towards enabling representation from

across regions, ethnicities, religions and different social strata and in line with Government of India guidelines.

Diversity of governance bodies and employees

405-1

Employee Diversity

Category NumberMale 5117

Female 265

SCs 917

STs 1163

Physically challenged employees 99

<30 years 596

30-50 years 3398

>50 years 1388

Minority 439

Total number of employees 5382

Ratio of basic salary and remuneration of women to men

405-2

The ratio of the basic salary and remuneration of Women to Men is 1:1. There is no difference between basic salaries for Male and Female at any position within the organization. The principle of ‘Equal Remuneration for men and women workers for Work of Equal Value’ is strictly followed in our Company. The Company provides equal opportunity to both men and women employees in all the matters, such as, salaries and payments, career growth and social security measures.

Category wise Diversity of Employees

Total Emp. SC ST OBC Women PH EX. Serviceman

Executives 1473 258 100 295 72 14 4

JOs 146 21 14 26 16 0 0

Workmen 3763 638 1049 671 177 85 6

Grand Total 5382 917 1163 992 265 99 10

l There are 2 Women directors on the Board.


Non-Discrimination406

103-1,103-2,103-3

NMDC, by itself and as a Government Company, stands committed to follow the policy of non-discrimination in all matters - recruitment, employment opportunity, promotion, etc.

l The Constitution of India, under Article 15, unambiguously prohibits discrimination on grounds of religion, race, caste, sex or place of birth.

l As a Government Company, NMDC is bound to follow the Government directives, which are abundantly clear against any discrimination in any matters.

l As a measure of protecting and improving the conditions of the downtrodden, special provisions have been made in terms of the Government directives in respect of candidates belonging to Scheduled Caste, Scheduled Tribe and Backward class, both in recruitment and promotion.

l NMDC Recruitment and Promotion Rules provide for qualifications, skill and experience required for candidates for recruitment and promotion at various levels.

l The grievance procedure in the Company is designed in a very simple and easy to handle way for the employees to get grievances, if any, to be resolved quickly.

Unions and Associations representing the various levels of employees have easy access to the management to discuss and resolve discriminations, if any, quickly and effectively.

Incidents of discrimination and corrective actions taken

406-1

There has been no case of discrimination reported in the year 2017-18.

Freedom of Association and Collective Bargaining

407

103-1,103-2,103-3

NMDC supports the freedom of association of employees and multiple unions exist at different projects and units. NMDC has maintained its glorious tradition of building and maintaining a conducive and fulfilling employee relations environment. The healthy practice of sorting out and settling issues through participative discussions with trade unions/workers’ representatives has resulted ensuring a peaceful industrial relationship.

NMDC stands committed to the protection of freedom of association among its employees. NMDC has three layers of employees: workmen, supervisors and executives. All our permanent employees (100%) are members of their respective recognized employee association. Workmen, who are mostly location specific, have their own Unions. More than one Union are functioning in each of the main units. Besides their affiliations to national bodies, cutting across such affiliations to central organizations, majority of the Unions at project level

have formed an independent apex body called All-India NMDC Workers’ Federation (AINMDCWF) positioned at the corporate office at Hyderabad. Supervisors have their own association (NMDC Supervisors’ Association) at unit level and at corporate level. Executives have their own association (NMDC Officers’ Association) at unit level and at the corporate level. All these Unions have been given assistance by the Management as considered necessary for their functioning. The details of such affiliated Unions, unit-wise, are given below:

Bailadila Iron Ore Mine, Kirandul Complex l Samyuktha Khadan Mazdoor Sangh (SKMS) affiliated to All

India Trade Union Congress (AITUC).

l Metal Mine Works Union (MMWU) affiliated to Indian National Trade Union Congress (INTUC).

Bailadila Iron Ore Mine, Bacheli Complexl Samyuktha Khadan Mazdoor Sangh (SKMS) affiliated to

AITUC.

l Metal Mine Workers Union (MMWU) affiliated to INTUC.

Donamalai Iron Ore Minel Donamalai Iron Ore Project Employees Association

(DIOPEA) affiliated to AITUC.

l Metal Mine Workers Union (MMWU) affiliated to INTUC.

Diamond Mining Projectl Panna Hira Khadan Mazdoor Sangh (PHKMS) affiliated to

BMS.

l Madhya Pradesh Rashtriya Heera Khani Mazdoor Sangh (MPRHKMS) affiliated to INTUC.

NMDC is totally committed to workers’ participation in the management. In pursuit of such commitment, Committees/Councils, both statutory and non-statutory, are functioning at the shop level, project level and at corporate level with equal number of representatives of the management and the Unions. Actions Decisions related to workmen such as wage settlement, incentives, bonus, line of promotions, working conditions, welfare measures, etc are taken in consultation with the representatives of unions/ Associations, both at the unit level and at the corporate level. All the workmen are subject to collective bargaining agreements and the supervisors and executives are governed by understanding/ consultations. The unanimous decisions taken at the Joint Committees are implemented and monitored.

MM4 No man days were lost during the year because of rift or strike by employees due to the effectiveness of Collective Bargaining.

As regards notification prior to the implementation of significant operational changes, all the necessary operational changes required in the interest of the Corporation are discussed in Bipartite Forum as well as in Project Level Committees.

Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

407-1

Since inception NMDC has promoted freedom of association and collective bargaining which gets reinforced through the


guidelines and acts of the Government. Thus NMDC has a set of robust associations covering 100% employees which has only got stronger with the passage of time. There is no risk per se as regards to freedom of association and collective bargaining in NMDC.

Local Communities413

103-1,103-2,103-3

NMDC takes pride in transforming communities and societies through community engagement, assets building, creating massive educational infrastructure and providing health services through programs under Corporate Social Responsibility (CSR). More importantly, the efforts directed by NMDC towards providing infrastructural facilities, education, health services and employment opportunities to people in the surrounding locations have provided a direct stimulus in contributing to the economic growth of the areas.

NMDC has been steadily building high impact and perpetually value adding CSR interventions through well-articulated strategies that create societal value by leveraging the decades old stakeholder relationships, sound economic performance and institutionalized partnerships with state governments and other agencies. The successful outcomes that achieve meaningful scales are replicated and sustained with schemes covering all major aspects of Human Development Indices viz. Education, Health, Skill Development, Drinking water and creation of infrastructure etc.

VisionTo strive for excellence in promoting Sustainable Development and improvement in quality of life of surrounding communities through CSR initiatives, based on ethical, transparent, accountable and sound governance practices.

The CSR Policy approved by the Board, provides a guiding framework to achieve the overarching Vision to serve the National Priorities and Sustainable Development Goals. Key societal challenges are identified through extensive stakeholder engagement including representatives of rural population, different levels of state government, which facilitates collaborative designing and implementation of programs leading to high value addition with meaningful outcomes. The Board Sub-Committee on CSR and Sustainability is in place to provide strategic direction, implementation aspects, review and monitoring mechanism, and ensures that CSR movement of the Company is well on track.

The dedicated Board level subcommittee on CSR & Sustainability, headed by an Independent Director, meets regularly to review progress of the major CSR activities vis. a vis. the plans. CSR proposals, are examined by the CSR and Sustainability Committee of Directors, and their recommendations are put up for approval of the Board. A separate Monitoring & Evaluation framework has also been put in place to ensure timely completion of the planned interventions.

Stakeholder & Community Engagement mechanism

NMDC has institutionalized a multi layered stakeholder engagement mechanism covering the entire range of stake holders. The involvement of stakeholders’ starts at the grassroots community level, followed by District level interaction and culminating in coordination with State Governments has ensured conceptual clarity, effective implementation and proper monitoring of the CSR Programs in NMDC. We are of the view that the focus of its CSR and that of the state government merge when it comes to the development of the local population. Accordingly NMDC has forged a synergetic partnership with state government agencies and the engagement mechanism has been institutionalized. Dept. of Public Enterprises, Govt. of India has recommended NMDC’s stakeholder consultation mechanism for other CPSEs to emulate. The multilevel stakeholder mechanism is shown below:


NMDC has been at the forefront of CSR and has been one of the biggest CSR spenders among CPSEs, as is borne out by the statistics for CSR expenditure in the last three Financial Years given below:

2015-16 2016-17 2017-18

193.28160.22

121.02

210.09174.18 169.37

050

100150200250

` Cr

ore

2% of Avg. PBT of prev 3 Years Actual CSR Exp.

Statutory requirement & Actual CSR Exp.(₹ Crore)

Implementation, Monitoring and Impact Assessment

NMDC has a three pronged approach to CSR Program implementation i.e. directly by NMDC, in partnership with State Governments and through reputed and experienced Non-Governmental Organizations/Service Providers or fellow Public Sector Enterprises. This has enhanced the effectiveness of the programs and value to the stakeholders. The monitoring of the schemes is carried out through a system of Joint Inspections with the concerned partners’ i.e. relevant service providers, NGOs, State Government Officials. The review is carried out at various levels in the organization and by the CSR and Sustainability Committee at the apex level. Last year, Impact assessment of two major Flagship CSR initiatives of the Company i.e. the Integrated Village Development Programme & Hospital on Wheels (Mobile Medical Unit) was carried out.

NMDC has been regularly conducting impact assessment of some of its major CSR initiatives and is conducting impact assessment of all the major initiatives under taken by the Company. Reports of the impact assessment studies undertaken in recent years are uploaded on the website of the Company. Impact assessment of two major Flagship CSR initiatives i.e. the Integrated Village Development Programme & hospital on Wheels (Mobile Medical Unit) of the Company have been carried out by a third party. Process for empanelment of Agencies for carrying out Impact Assessment studies on a regular basis has been initiated.

Operations with local community engagement, impact assessments, and development programs

413-1

NMDC has extensively engaged with the local community and its representatives ever since its inception which has led

Interactions with various agencies including Bastar & Southern Region Development Authority (BSRDA)

Meeting with Sarpanchs &

local community representatives

Meeting with individual District

Collectors

Meeting with Bastar

Commissioner along with District

Collectors

Chief Secretary level meeting

to understanding and insight into the key requirements of the local society in its journey of development. Based on this knowledge NMDC has defined the thrust and focus area to achieve impactful outcomes. The thrust areas include health, drinking water, infrastructure, education and skill development which are shown below:

Education: ‘Prayas - A Pursuit to Education

Health: ‘Niramaya - Towards Healthy Life

Infrastructure: ‘Prakalp – Creating Infrastructure’

Drinking Water: ‘Payjal – Providing safe drinking water

Skill Development: ‘Kaushal – Skilling People

Education: ‘Prayas - A Pursuit to Education’

The education scenario in the surrounding communities has been marked by very high number of children not having access to even primary level of education, high dropout rates among school going children, lack of access to technical/ professional education due to economic & various other social factors and lack of quality educational infrastructure in the region. The situation was even worse among the girl students who had very few facilities to continue or pursue higher education.

NMDC follows a multi-pronged implementation strategy w.r.t ‘Prayas’ initiative whereas for the implementation of the grass root level segment of the initiative is being implemented


through NGO’s and Govt’s anganwadi staff, the subsequent higher segment is being implemented by NMDC directly by way of novel schemes such as Shiksha Sahayog Yojana and the higher level segment of the initiative is implemented in partnership with Service providers, State Authorities and in some cases all the three partners put together.

The roles of the partners vary from segment to segment. At the grassroots level the NGO supplements the effort of the State Govt. staff, whereas in the middle segment NMDC takes on the role of financier as well as that of an implementer. At the higher educational level, service providers and the State Authorities play the role of implementing partners & NMDC dawns the role of funding agency. The programmes/initiatives to promote the cause of education are listed below:

S No

Activity Name Details Reach Location

1 Support to Anganwadi (Pre Primary) Centres

Providing Nutritional Support & pre-primary training

49 Aanganwadi Centres with 543 children

Dantewada Dist. Chhattisgarh

2 Support to Primary Schools students

Providing Nutritional & Academic support

45 schools with 1000 children


3 Education Improvement Programme

Program to address the issue of high dropout rate and improve grade specific learning levels

84 schools & 4367 children including 2027 girl students benefitted from the intervention


4 Free Transport Facility Free facility to students from villages surrounding NMDC Projects to help them attend schools and colleges

350 students approx. Donimalai (Karnataka), Bailadila Projects (Chhattisgarh), Panna (MP)

5 Mid-Day Meal Scheme Providing nutritious and wholesome meal to school students

8000 children in 38 schools since 2008-09

Bellary Dist. Karnataka


S No


6 Education City, Dantewada Island of Educational facilities located in Dantewada Dist. Chhattisgarh & consisting of initiatives viz. Astha Gurukul, Saksham, Polytechnic, Auditorium etc.

Benefitting around 5000 students


7 Education City – ‘Astha Gurukul’

Residential school for children affected by Left wing extremism

Total Capacity – 1200 students


8 Education City – ‘Saksham’ (I & II)

For disabled students - 100% Disabled friendly school

Total Capacity – 200 students


9 Residential School, Nagarnar Residential school for children from remote tribal hamlets. Most students are 1st generation school goers of their families.

571 students till class X. One class being added every year

Bastar Dist, Chhattisgarh

10 Shiksha Sahayog Yojana Providing educational scholarships to economically backward students for pursuing education from 8th class up to Graduation level

18000 scholarships provided every year

Bastar Division (comprising seven districts) Chhattisgarh, eight villages around Donimalai Project (Karnataka)

11 Balika Shiksha Yojana Sponsoring Tribal girl students for professional Nursing Courses at Apollo College of Nursing, Hyderabad

Till date, 298 students benefitted

Bastar Division, Chhattisgarh

12 ITI, Bhansi Promoting technical education among local students of Bastar Dist

Total Intake: 76 (12-welder & 16 each -other trades)

Dantewada Dist Chhattisgarh

13 ITI, Nagarnar Promoting technical education among local students of Bastar Dist

Total Intake: 28 (12-welder & 16-Mason Trade). Trades - Welder & Fitter, Diesel Mechanic, Electrician & Motor Vehicle Mechanic

Bastar Dist. Chhattisgarh

14 Polytechnic, Dantewada Promoting technical education among local students of Bastar Division

Total Intake: 126 (63 in each discipline)Trades: Mechanical & Electrical


15 Construction of Aakar Bhavan

School for differently abled children from economically backward sections of society

Capacity: 100 each for Boys & Girls

Sukma Dist, Chhattisgarh

16 "Choo Lo Asman" To help students of Dantewada Dist to help 400 science students prepare for technical competitive exams

400 students Dantewada Dist. Chhattisgarh

17 Ujjar - 100 Help 100 bright students to pursue higher education

100 students Dantewada Dist. Chhattisgarh

18 Operation of single teacher school

Operating single teacher schools around NMDC Bailadila Projects by Friends of Tribal Society

500 single teacher schools Dantewada Dist. Chhattisgarh


NMDC assesses the impact of its initiatives regularly to ensure value addition to the stakeholders. Studies by independent agencies provide a positive feedback on the various aspects of the Initiative. The outcomes of some of the impact assessments are given below:

l Intervention for providing nutritional and academic support to pre-primary & primary students is giving desired results in terms of better school attendance and healthy growth indicators of Children.

l Segments like NMDC Shiksha Sahayog Yojana are contributing to reduction in drop outs by motivating children to continue studies by monetarily supporting their educational efforts.

l Infrastructure created for school & Post school level education has provided much needed facilities for otherwise backward region and spawned higher aspirations and better employment opportunities for local youth.

This has encouraged NMDC in continuing its unstinted efforts for promotion of education. The initiative has had a significant impact in the lives and standard of living of the surrounding communities in terms of literacy, education, awareness, aspirations and standard of living. The Prayas initiative has implanted a high impact scheme of Education City at Geedam and a new scheme in Bijapur.

Education City

Factors like difficult geographic terrain coupled with prevailing law and order situation have seriously hampered the chances of local children to get quality professional and technical education over the years. In wake of this reality, Govt. of Chhattisgarh came up with a solution for establishing an Education City at Geedam, Dantewada District with institutions ranging from Primary school to professional institutions like polytechnic in a single campus. The objective was to provide conducive environment to the local children for overall intellectual and physical development by providing them with quality educational facilities NMDC has partnered actively with the State Govt. in this unique initiative and is supporting it in several ways. Hon’ble Prime Minister during his visit to Education City had all the praise for the initiative.

Astha Gurukul is a residential school in the Education City primarily for children affected by naxalite related violence apart from SC/ST/OBC and other underprivileged students from the local communities. NMDC has funded creation of physical infrastructure and facilities viz. Academic block, residential complex, staff quarters in Astha Gurukul.

Construction of 1000 seater hostels for boys and girls respectively has been funded by NMDC in the Education City. Polytechnic College at Dantewada has been established and operated by NMDC within the premises of Education City. Saksham is a residential school which has been established for children with special needs. The idea is to educate and train them at all levels and facilitate their schooling with appropriate aids and materials. NMDC has been supporting Saksham by bearing the regular operational expenditure of the school and has also financially contributed towards creation of the physical infrastructure. Saksham Campus is 100% disabled friendly campus for visually impaired, hearing impaired, physically handicapped, and mentally retarded students. Saksham is the only educational institution in the country to have 100% barrier free access for disabled children.

Health: ‘Niramaya – Towards Healthy Life’

The genesis of NMDC’s Niramaya Programme lies in the situation which prevailed in the villages around NMDC Projects which was marked by near absence of basic medical facilities including health infrastructure for the local communities which included an overwhelming majority of tribals. The prevalence of above difficult situation was compounded even more due to the remote nature of the Project locations along with Left wing extremism activities which resulted in near absence of any medical facilities for the local population.

In light of the situation prevailing, NMDC under its CSR Programme took some initiatives for providing medicare facility to the local communities. Such initiatives have developed into a full-fledged programme which aims at providing medicare and health facilities

‘Niramaya – Towards Healthy Life’ is a unique programme providing a mix of preventive as well as curative healthcare and includes component of creating awareness among the local communities and mobilizing them on issues related to personal hygiene, safe sanitation and cleanliness.


In this backdrop, NMDC has undertaken various programmes/initiatives to promote the cause of health which are listed hereunder:

S No


1 Free treatment at Project Hospitals

Providing free treatment to local tribals at NMDC Project Hospitals

Out-patient – 1,00,000 per annumIn-patient – 10,000 per annum

Chhattisgarh,Karnataka,Madhya Pradesh

2 Medical Camps Organizing medical camps for local tribal population

Nearby villages Chhattisgarh, Karnataka

3 Hospital on Wheels Providing medicare facilities in remote villages through mobile medical vans

Covers 37 villages Chhattisgarh

Providing free medical treatment to local tribals has been the earliest CSR initiative of the Company. The facility has been available to the local communities as soon as the facility was made available to the Company employees.

Apart from the above mentioned regular initiatives, NMDC has also taken other initiatives to promote the cause of healthcare facilities which include:

l Financial contribution for establishment of Medical College at Jagdalpur

l Strengthening of Primary Health Centres (PHCs) in Bellary Dist, Karnataka by upgrading / equipping them with necessary medical equipment. Similarly, 10 PHCs were supported in Bijapur Dist, Chhattisgarh

l Contribution to Sanjeevani Kosh of Govt. of Chhattisgarh for referring poor tribal patients for specialist treatment to higher medical centres

l Construction of Drug Warehouse at Bijapur District, Chhattisgarh for storing medicines and other essential drugs.

l Construction of 14 Primary Health Centres (PHCs) in villages in Dantewada District

l Support for organizing Medical camps for corrective surgeries of School Students in Bastar District

l Renovation works of all PHC’s & CHC’s of Sukma District

l Installation of Incinerator & Bio Waste management in Dist. Hospital Bijapur


The Heath initiatives of NMDC extend to preventive care also, the Company is taking proactive steps to enhance awareness on personal hygiene and sanitation amongst communities in villages. In this regard, a dedicated campaign is being undertaken in 16 villages around NMDC Projects in Dantewada Dist. Chhattisgarh. The programme has been successful in motivating villagers in constructing 1661 household toilets in convergence with Swachh Bharat Mission Grameen scheme. The programme aims to construct 2450 toilets by 2019 & make these villages open defecation free.

Infrastructure: ‘Prakalp – Creating Infrastructure’

NMDC CSR Programme has always laid strong emphasis on creating infrastructure in & around the Project location since its initial days. This was necessary due to the extremely remote nature of the NMDC Project locations. Over these years, the thrust on creating sound infrastructure has continued and is facilitating mainstreaming of the local communities and the entire region. NMDC has been mainly undertaking infrastructure activities in partnership with local State Authorities. These initiatives extend from creating roads to creating school buildings, health infrastructure to community centres.

S No

Activity Name Details Location

1 Construction of Gaurav Path

4 way lane in Dantewada District.

Dantewada District

2 Jagdalpur Bypass 19.4 km long bypass for Jagdalpur Town.

Bastar District

3 High level Bridge Construction of High level Bridge over Dankini River

Dantewada

4 Construction of Culvert, Bridge & BT Road at Kaknar

Construction of Culvert, Bridge & BT Road at Kaknar

Bastar

5 Tribal Haat Bazar at Katiyaras

Tribal Haat Bazar at Katiyaras

Dantewada

6 Construction of Palnar-Sameli-Aranpur Road

Construction of Palnar-Sameli-Aranpur Road

Dantewada

7 Electrification works in Kuakonda & Katekalyan Blocks

Electrification works in villages

Dantewada

Some other infrastructural initiatives include:l Construction of Gaurav Path, 4 lane road at Bacheli &

Kirandul in Dantewada Dist. Chhattisgarh

l Various development works viz. roads, bridges, culverts, drains, repair and maintenance of buildings etc. undertaken in Gram Panchayats of Kuakonda, Katekalyan, Geedam & Dantewada blocks of Dantewada District, Chhattisgarh

l Construction of CC Road in Navaletti, Dist. Bellary Karnataka

l Construction of H-63 to Kodroji, Bijapur District

l Fencing works in 100 hectare land in Kondagaon District

l Construction of Auditorium in Bellary Dist. Karnataka

l Promotion of Solar energy- installation of solar pumps, solar electrification works, solar equipment distribution in various gram panchayats in Dantewada & Geedam blocks

l Similar initiatives have been undertaken in Project locations in other States

Drinking Water: ‘Payjal- for safe drinking water’

NMDC has undertaken measures to provide clean drinking water to the communities around its Projects.

S No

Activity Name

Details Reach Location

1 Nal Jal Yojana

Providing Piped drinking water to households in villages

6 villages Bastar

2 Group Water supply scheme

Clean drinking water to villages

32 villages Dantewada

l Apart from the above mentioned initiatives, NMDC has installed about 350 hand pumps/ bore wells and dug around 40 open wells in Dantewada Dist

l Hand pumps have been installed in villages around Donimalai Project in Bellary Dist of Karnataka


l Initiative has been taken for providing clean drinking water through installation of storage tanks and laying of pipeline for distribution of water to nearby communities

l Installation of 39 water purification plant buildings in Bellary Dist, Karnataka

l Providing clean drinking water to surrounding villages around DMP, Panna Dist Madhya Pradesh

l Installation of overhead water tank & drinking water facility in Sukma District

l Installation of 30 nos. solar pumps for providing drinking water facility to distant locations in Sukma District.

Skill Development: ‘Kaushal – Skilling People’

Skill Development initiatives have been undertaken to provide opportunities for local tribal youth and women in order to gain meaningful employment and for livelihood generation.

S No

Activity Name

Details Reach Location

1 Kaushal Vikas Karyakram

Improving competitive capabilities and employability by imparting general & technical skills

100 participants covered

Dantewada

2 Skill Devt Prog in Mining & Steel sector

Skill Devt on Mining & Steel sector related skills

1600 youth Dantewada, Bastar, Bellary

3 Skill Devt in Bamboo, Bell Metal & Tumba Art

Skill Devt in Bamboo, Bell Metal & Tumba Art

300 women Bastar

4 Skill Devt in tailoring, broom making & Non timber Forest Produce

Skill Devt in tailoring, broom making & Non timber Forest Produce

116 women Dantewada

5 Skill devt in partnership with M/s Urbo Rural Integrated Development Association (URIDA)

Skill devt programme in trades viz. Industrial Garmenting, Woodcraft & Domestic Electrician

270 persons from socio economically disadvantaged sections of society

Dantewada

6 Skill devt in partnership with Construction Industry development Council (CIDC)

Skill development programme in construction industry related skills

200 persons Dantewada

Skill development trainings for tribal women have been conducted in trades such as broom making, vegetable cultivation etc.

Integrated Village Development Realizing the need to improve the overall socio economic profile of the tribal villages which have historically been marked by isolation and lack of development, NMDC took an initiative in 2009 to bring a change in the overall profile of these village by taking up varied and multi-dimensional developmental initiatives. Together these initiatives have been termed as Integrated Village Development (IVD). The idea behind IVD is to transform these villages into model villages through a host of developmental activities. The canvas of developmental work undertaken in these villages range from healthcare, education, infrastructure development to income enhancement by promoting agriculture and non-agriculture based livelihood opportunities. Specialized NGO’s have been engaged to support execution. Detailed assessments were conducted to identify the gaps and prepare village specific action plan for village development. The initiatives under the IVD component have been successful in touching every aspect of the rural life and have started to show positive results in the direction of transforming these villages as model villages. The key components include women empowerment, agriculture and livelihood support services, education and Health services.

Sustainable Livelihood through support to AgricultureMochabadi Scheme

Farmers in the south Bastar Region were entirely dependent on single crop cultivation i.e. paddy. The yield was very much dependent on monsoons, more over the stray cattle/other animals meandered in their fields which eventually destroyed the cultivated crop. Keeping the problem in mind District Administration, Dantewada and NMDC Ltd. thought of an initiative called ‘Mocho Badi’. This initiative includes Barbed Wire Fencing of farming fields, and other initiatives like digging of Tube well and water lifting pumps.


Now, about 1300 farmers have been benefitted by ‘Mocho Badi’ scheme. These farmers are cultivating various crops around the year. Due to the initiative, yield of beneficiary farmers has multiplied many times and income of these farmers has gone up by 600% (Approximately). Due to its success, ‘Mocho Badi’ scheme has become very popular in South Bastar region, hence thousands of farmers are demanding the ‘Mocho Badi’ scheme for themselves

Distribution of Farming Implements & Equipment

The agricultural practices in the region needed support and hand-holding to boost the yield and enhance agricultural produce. The farmers were not having requisite implements for carrying out agricultural activities which was a major reason for low farm produces.

NMDC Limited partnered with District Administration, Dantewada for procurement and distribution of agricultural equipment (s) viz. Escort/equivalent Tractor, Hydraulic Trolley, Cultivator, Dozer attachment Plough, etc. to nearby selected Gram Panchayats. The aim of supporting this initiative is to introduce new farming techniques and strengthen agriculture practices and provide requisite support to the farmers in the hinterlands of the state. An initiative under CSR was undertaken for strengthening infrastructure and ensuring capacity-building of the farmers for livelihood enhancement.

Swachh Bharat

Under the Swachh Vidyalaya initiative, 2089 toilets blocks have been constructed across Schools in Six Districts of Bastar Division in Chhattisgarh & in Panna District of Madhya Pradesh along with construction of 70 additional toilet complexes in Sukma District of Chhattisgarh.

It is NMDC’s committed stand that the first beneficiary of its success ought to be the community in whose midst it undertakes its mining related activities. Corporate Social Responsibility has been a high priority area in the organization and it is ingrained in

its very DNA. We have been relentlessly striving to change the face of the very backward areas where we operate. It is a matter of great satisfaction as a Navratna Company and a respected Corporate Citizen we have been able to make a very positive


impact in the lives of local population through consistently and ever improving initiatives in a collaborative manner. This approach has ensured that NMDC becomes a good support in their lives - from helping them in their income generation efforts, to providing basic amenities and going beyond to providing them quality education and helping them to realize their aspirations.

The Department of Public Enterprises has recommended NMDC’s model of stakeholder consultation as worthy of emulation by other PSEs. NMDC complements the state administration’s efforts towards development, making it a winning proposition for the local population. But, more than anything what matters most to us is the smile on the face of a healthy villager in a school and the glint of determination in the eyes.

Case Studies of beneficiariesProviding Holistic Solutions with Head, Heart and Hand

Indu Manikpuri

Indu is a student of Class VII at Aastha Vidya Mandir, the residential schooling facility established and operated by NMDC in partnership with State Authorities, she lost her father in an incident of Maoist violence in May 2005, and her mother was forced to work as an unskilled labour. After the demise of

father, Indu’s family faced tremendous hardships and did not a future course of action.

Indu was admitted in 2004 to Aastha Vidya Mandir, an English Medium CBSE affiliated residential school for Naxal affected children in class V. She had been a meritorious student right from childhood and her talent was nurtured by teachers at the school. She has special interest and inclination towards Mathematics, Science and Computers. She has bagged the first prize in Science Quiz Competition in session 2015-16 and has also participated in Mathematics, Science and computer Olympiads. Apart from her brilliant academic records, she has consistently participated in extra-curricular activities as well.

Indu is passionately curious and shows all signs of an innovator. She has worked on projects which aim to deliver holistic solutions and was awarded the Dr. APJ Abdul Kalam Ignite Award for 2016-17 for her innovative project, “Septic Tank Fluid Level Indicator.”

Indu aspires to become an IAS officer in future.

Accomplishing Winning StrokesUsha Karti

The debate on whether talent is realized through nature or nurturing is an old one. However, some people stand apart from such debates through their achievements and blaze a path of such glory that is almost impossible for others to emulate.

The story of Usha Karti is one such example. Born in the small village of Mirtur in Bijapur district of Chhattisgarh, her life was changed forever when her father, Shri Sukuram Karti, Sarpanch of the Gram Panchayat, was brutally killed by Maoists. It seemed that darkness had descended forever on the lives of Usha and her family; little did anyone know that Usha’s fame and glory would rise a like from the darkness.

Usha was admitted to Aastha Vidya Mandir, Jawanaga, the residential schooling facility established and operated by NMDC in partnership with State Authorities, where her talent as a sportsperson was noticed by the school administration, and no stone left unturned to nurture her talent. By virtue of her dedication and effective coaching, Usha set benchmarks in various district level tournament.

In 2017-18, Usha has been selected for Chhattisgarh State Under 17 Tennis Ball Cricket Team and exhibited her talent at the national arena. She is the only player in the team from the Baster region and aspires to one day represent the Indian Women’s Cricked Team.

Raising the BenchmarkNamrata Jain

Of late, Namarata Jain has become a household name in Dantewada and beyond. She bagged the 99th rank in UPSC 2016, the first one from the Bastar region

to accomplish such a feat. Currently, Namrata is training to be a police officer at the IPS Academy, Hyderabad.

Namrata prepared for the UPSC examination at the the Lakshya Academy, an initiative of the the Dantewada district administration, run with CSR support from NMDC.

The Milky way of lifeAituram Kawasi

Aituram a resident of village Godre, blushes when asked about his monthly income of ` 60000. With a smile and an almost childlike simplicity, he explains how his entire life has been changed by Kshirsagar.

Kshirsagar is a cooling and packaging unit for raw milk, run by the Milk Producers Cooperative supported by NMDC & Dantewada district administration to supplement incomes of small and marginal farmers. The unit collects raw milk from farmers residing in nearby villages, and sells packaged milk and other high value products such as buttermilk, ghee, paneer, kalakand, lassi etc. Revenue from the sales of these products is shared amongst the participating farmers through cheques on a weekly basis.

Aituram confesses he was living on the edge of poverty, prior to his association with Kshirsagar, and was forced to supplement his meager income by working as a daily wage labourer. Now, his quality of life has improved dramatically, and he can dream of a better future.


Talent blooms when nurtured in the right environment, even if it has to face some odds initially.Bhuvneswar Majhi

Bhuvaneshwar’s father Late Shri Phileshwar Majhi was a resident of Kirikpal village, District Sukma and the ‘Sachiv’ of the Gram Panchayat. He was Killed by Maoists when Bhuvaneshwar was just 8-year-old. His mother was immensely worried about the education of her two kids and got some solace when both siblings were admitted to the Aastha Vidya Mandir, the residential schooling facility established and operated by

NMDC in partnership with State Authorities.

Bhuvaneshwar’s talent in the fine arts was noticed almost immediately by his teachers, and the school administration left no stone unturned in nurturing his talents. He participated in various painting competitions and came out with flying colours. However, the moment of pride for Bhuvaneshwar and his school was when one of his paintings was selected by the intentional Space Foundation, Colorado (US) in 2016-17. Such a huge feat

at such a young age speaks volumes about his protentional talent, and the heights Bhuvaneshwar can achieve with the right guidance.

Bhuvaneshwar aims to become a policeman and serve the nation.

Operations with significant actual and potential negative impacts on local communities

413-2

Generally in open cast mining the actual and potential negative impacts on local communities take place during the mine development stage especially in areas with forest cover. The impacts are mainly on the foraging rights of the indigenous communities and the supplement to their earning potential by collection and sale of miner forest produce. In case of most of the NMDC mines there were negligible to non-existent population in the remote areas where the mining activities started, as such it can be said that the mining operations of NMDC have practically no negative impacts on local communities. On the other hand development of a steel plant at Nagarnar will have potential positive impact on the local communities in terms of inclusive economic development and consequent improvement in the quality of life.


AbbreviationsAGM Annual General Meeting

AINMDCWF All-India NMDC Worker’s Federation

BIOM Bailadila Iron Ore Mine

BRR Business Responsibility Report

BSE Bombay Stock Exchange

CCSI Columbia Center On Sustainable Investment

CIDC Construction Industry development Council

CII Confederation Of Indian Industry

CIMFR Central Institute of Mining and Fuel Research

CMDC Chhattisgarh Mineral Development

Corporation

CPCB Central Pollution Control Board

CPGRAMS Centralized Public Grievance Redress And

Monitoring System

CSIRO Commonwealth Scientific and Industrial

Research Organization

CSR Corporate Social Responsibility

CVC Central Vigilance Commission

CVO Chief Vigilance Officer

DGM Deputy General Manager

DGMS Directorate-General of Mines Safety

DGPS Differential Global Positioning System

DIOM Donimalai Iron Ore Mines

DMRL Defence Metallurgical Research Laboratory

DNA Deoxyribonucleic Acid

DPE Department of Public Enterprises

EFBS Employee Family Benefit Scheme

EIA Environmental Impact Assessment

EMP Environmental Management Plan

ERM Enterprise Risk Management

FIMI Federation of Indian Mineral Industries

FPIC Free Prior and Informed Consent

GHG Greenhouse Gases

GJ Giga joule

GOI Government of India

GPS Global Positioning System

GRI Global Reporting Initiative

HEMM Heavy Earth Moving Machinery

HI-PO High Performance

HR Human Resource

IBM Indian Bureau of Mines

IBRAD Indian Bio Social Research and Development

ICFRE Indian Council of Forestry Research and

Education

IIME Indian Institute of Mineral Engineers

IIT Indian Institute of Technology

IMMT Institute of Minerals & Materials Technology

IMS Integrated Management System

INDC Intended Nationally Determined Contributions

IP Integrity Pact

IREL Indian Rare Earths Limited

ISO International Organization For Standardization

ISO Internal Safety Organization

IT Information Technology

ITC Indian Tobbaco Company

IUCN International Union for Conservation of Nature

IVD Integrated Village Development

JV Joint Venture

KC Kirandul Complex

KIOCL Kudremukh Iron Ore Company Limited

KIOM Kumaraswamy Iron Ore Mines

KL Kilo Litre

KPIs Key Performance Indicators

LODR Listing Obligation and Disclosure

Requirements

LTD Limited

M Meter

MEAI Mining Engineers Association of India

MGMI The Mining, Geological & Metallurgical

Institute of India

ML Milli Litre

MM Metals & Mining

MMT Million Metric Tonnes

MMTC Metals and Minerals Trading Corporation of

India

MOEF & CC Ministry of Environment, Forest and Climate

Change

MOU Memorandum of Understanding


MOU&E Union Ministry of Labour & Employment

MSE Medium Scale Enterprise

Mt Metric Tonnes

Mtpa Million Tonnes Per Annum

MTSS Mines Transport Surveillance System

Mwh Megawatt Hour

NISP Nagarnar Iron and Steel Plant

NMDC National Mineral Development Corporation

NMZ Non Mineralized Zone

NOx/NO2 Nitrogen Oxides

OBC Other Backward Class

OCSL Ore Crushing Screen and Loading

ODS Ozone-Depleting Substances

OHSAS Occupational Health and Safety Assurance

Standrad

PAT Profit After Tax

PBT Profit Before Tax

PHC Public Health Centre

PMS Performance Management System

PRSI Public relations Society of India

PSE Public Sector Enterprise

R&D Research And Development

R&R Reclamation and Rehabilitation

REET Rare Endangered Extinct Threatened

ROM Run-of-Mine

Rs (₹) Rupees

RTMs Risks That Matters

RWLS Rapid Wagon Loading System

SA Social Accountability

SBR Sequencing batch reactor

SC Scheduled Caste

SCMS Skill Council for Mining Sector

SDG Sustainable Development Goals

SEBI Securities and Exchange Board of India

SMP Strategic Management Plan

SMP Safety Management Plan

SMS Steel Melting Shop

SOP Standard Operating Procedure

SOx Sulphur Dioxide

SPCB State Pollution Control Board

SPV Special Purpose Vehicles

ST Scheduled Tribe

STPs Sewage Treatment Plant

TII Transparency International India

ug/m³ Micrograms per Cubic Meter

UN United Nations

UNFCCC United Nations Framework Convention For

Climate Change

UNGC United Nations Global Compact

VSP Vizag Steel Plant


“For the GRI Content Index Service, GRI Services reviewed that the GRI content index is clearly presented and the references for all disclosures included align with the appropriate sections in the body of the report.”

GRI Content Index102-55

GRI Content Index GRI Standard Disclosure Page number(s) OmissionGRI 101: Foundation 2016General Disclosures

GRI 102:GENERAL DISCLOSURES 2016

Organizational profile102-1 Name of the organization 12102-2 Activities, brands, products, and services 12102-3 Location of headquarters 13102-4 Location of operations 13102-5 Ownership and legal form 19102-6 Markets served 19102-7 Scale of the organization 19102-8 Information on employees and other workers 19102-9 Supply chain 21102-10 Significant changes to the organization and its supply

chain21

102-11 Precautionary Principle or approach 21102-12 External initiatives 22102-13 Membership of associations 25Strategy102-14 Statement from senior decision-maker 4102-15 Key impacts, risks, and opportunities 6Ethics and integrity102-16 Values, principles, standards, and norms of behaviour 27102-17 Mechanisms for advice and concerns about ethics 28Governance102-18 Governance structure 29102-19 Delegating authority 31102-20 Executive-level responsibility for economic,

environmental, and social topics31

102-21 Consulting stakeholders on economic, environmental, and social topics

31

102-22 Composition of the highest governance body and its committees

31

102-23 Chair of the highest governance body 32102-24 Nominating and selecting the highest governance body 32102-25 Conflicts of interest 32102-26 Role of highest governance body in setting purpose,

values, and strategy32

102-27 Collective knowledge of highest governance body 33102-28 Evaluating the highest governance body’s performance 33102-29 Identifying and managing economic, environmental,

and social impacts33

102-30 Effectiveness of risk management processes 33102-31 Review of economic, environmental, and social topics 34102-32 Highest governance body’s role in sustainability

reporting34

102-33 Communicating critical concerns 34102-34 Nature and total number of critical concerns 35


102-35 Remuneration policies 35102-36 Process for determining remuneration 36102-37 Stakeholders’ involvement in remuneration 36102-38 Annual total compensation ratio 36102-39 Percentage increase in annual total compensation ratio 36Stakeholder engagement102-40 List of stakeholder groups 36

102-41 Collective bargaining agreements 37102-42 Identifying and selecting stakeholders 37102-43 Approach to stakeholder engagement 37102-44 Key topics and concerns raised 39Reporting practice102-45 Entities included in the consolidated financial

statements39

102-46 Defining report content and topic Boundaries 39102-47 List of material topics 39102-48 Restatements of information 41102-49 Changes in reporting 41102-50 Reporting period 41102-51 Date of most recent report 41102-52 Reporting cycle 41102-53 Contact point for questions regarding the report 41102-54 Claims of reporting in accordance with the GRI

Standards41

102-55 GRI content index 41102-56 External assurance 41

GRI Standard Disclosure Page Number(s) and/or URL(s)

Omission

Material Topics 200 series (Economic topics)Economic Performance

GRI 103: Management Approach 2016

103-1 Explanation of the material topic and its Boundary 43103-2 The management approach and its components 43103-3 Evaluation of the management approach 43

GRI 201: Economic Performance 2016

201-1 Direct economic value generated and distributed 47201-2 Financial implications and other risks and opportunities

due to climate change48

201-3 Defined benefit plan obligations and other retirement plans

48

201-4 Financial assistance received from government 48Indirect Economic Impacts



GRI 203: Indirect Economic Impacts 2016

203-1 Infrastructure investments and services supported 48203-2 Significant indirect economic impacts 48

Procurement Practices



GRI 204: Procurement Practices 2016

204-1 Proportion of spending on local suppliers 49

Anti-corruption



GRI 205: Anti-corruption 2016

205-1 Operations assessed for risks related to corruption 51205-2 Communication and training about anti-corruption

policies and procedures51

205-3 Confirmed incidents of corruption and actions taken 51


300 series (Environmental topics)Materials



GRI 301: Materials 2016

301-1 Materials used by weight or volume 54301-2 Recycled input materials used Not applicable,

Reason at Page 55

301-3 Reclaimed products and their packaging materials Not applicable, Reason at Page

55Energy



GRI 302: Energy 2016

302-1 Energy consumption within the organization 55302-2 Energy consumption outside of the organization 57302-3 Energy intensity 58302-4 Reduction of energy consumption 58302-5 Reductions in energy requirements of products and

services58

Water



GRI 303: Water 2016

303-1 Water withdrawal by source 59303-2 Water sources significantly affected by withdrawal of

water59

303-3 Water recycled and reused 59Biodiversity



GRI 304: Biodiversity 2016

304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

60

304-2 Significant impacts of activities, products, and services on biodiversity

60

304-3 Habitats protected or restored 61304-4 IUCN Red List species and national conservation list

species with habitats in areas affected by operations61

Emissions



GRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG emissions 63305-2 Energy indirect (Scope 2) GHG emissions 63305-3 Other indirect (Scope 3) GHG emissions 63305-4 GHG emissions intensity 63305-5 Reduction of GHG emissions 64305-6 Emissions of ozone-depleting substances (ODS) 64305-7 Nitrogen oxides (NOX), sulphur oxides (SOX), and other

significant air emissions64

Effluents and Waste



GRI 306: Effluents and Waste 2016

306-1 Water discharge by quality and destination 65306-2 Waste by type and disposal method 65306-3 Significant spills 67306-4 Transport of hazardous waste 67306-5 Water bodies affected by water discharges and/or

runoff67


Environmental Compliance



GRI 307: Environmental Compliance 2016

307-1 Non-compliance with environmental laws and regulations

68

400 series (Social topics)Employment



GRI 401: Employment 2016

401-1 New employee hires and employee turnover 73401-2 Benefits provided to full-time employees that are not

provided to temporary or part-time employees73

401-3 Parental leave 74Occupational Health and Safety



GRI 403: Occupational Health and Safety 2016

403-1 Workers representation in formal joint management–worker health and safety committees

75

403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

76

403-3 Workers with high incidence or high risk of diseases related to their occupation

76

403-4 Health and safety topics covered in formal agreements with trade unions

77

Training and Education



GRI 404: Training and Education 2016

404-1 Average hours of training per year per employee 78404-2 Programs for upgrading employee skills and transition

assistance programs79

404-3 Percentage of employees receiving regular performance and career development reviews

80

Diversity and Equal Opportunity



GRI 405: Diversity and Equal Opportunity 2016

405-1 Diversity of governance bodies and employees 80405-2 Ratio of basic salary and remuneration of women to

men80

Non-discrimination



GRI 406: Non-discrimination 2016

406-1 Incidents of discrimination and corrective actions taken 81

Freedom of Association and Collective Bargaining



GRI 407: Freedom of Association and Collective Bargaining 2016

407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

81

Local Communities



GRI 413: Local Communities 2016

413-1 Operations with local community engagement, impact assessments, and development programs

83

413-2 Operations with significant actual and potential negative impacts on local communities

92


MM Sector Supplement

GRI-G4 MM Sector Disclosures

Description Response Status Reference (Pg)

MM -1 Amount of land (owned or leased, and managed for production activities or extractive use) disturbed or rehabilitated

Full Disclosure 60

MM -2 The number and percentage of total sites identified as requiring biodiversity management plans according to stated criteria, and the number (percentage) of those sites with plans in place

Full Disclosure 60

MM -3 Total amounts of overburden, rock, tailings, and sludges and their associated risks

Full Disclosure 65

MM -4 Number of strikes and lock-outs exceeding one week’s duration, by country

Full Disclosure 81

MM -5 Total number of operations taking place in or adjacent to indigenous peoples’ territories, and number and percentage of operations or sites where there are formal agreements with indigenous peoples’ communities

No Disclosure There are no operations taking place in or adjacent to indigenous peoples’ territories

MM -6 Number and description of significant disputes relating to land use, customary rights of local communities and indigenous peoples

No Disclosure No issues in the reporting period

MM -7 The extent to which grievance mechanisms were used to resolve disputes relating to land use, customary rights of local communities and indigenous peoples, and the outcomes


MM -8 Number (and percentage) of company operating sites where artisanal and small-scale mining (asm) takes place on, or adjacent to, the site; the associated risks and the actions taken to manage and mitigate these risks

Full Disclosure 54

MM -9 Sites where resettlements took place, the number of households resettled in each, and how their livelihoods were affected in the process


MM -10 Number and percentage of operations with closure plans Full Disclosure 54


1 | P a g e TÜV®

Independent Assurance Statement

Introduction and Engagement National Mineral Development Corporation Limited (hereafter ‘NMDC’ or ‘the Company’) commissioned TUV India Private Limited (TUVI) to conduct the independent assurance of NMDC’s sustainability report (hereinafter ‘the Report’), which includes “limited assurance” of NMDC’s sustainability information as a whole within the sustainability information for the applied reporting period. This assurance engagement has been conducted against the GRI Standards and AA1000AS (2008) Protocol (Type I, Limited Level) for verification of the Report. The verification was conducted in February 2019 at “NMDC, “Khanij Bhavan”, 10-3-311/A, Castle Hills Masab Tank, Hyderabad - 500 028”. The Report covers NMDC’s sustainability information form 1st April 2017 to 31st March 2018 period.

Scope, Boundary and Limitations of Assurance The scope of the assurance includes the Economic, Environmental and Social disclosures in the Report as per “Comprehensive” option required in GRI Standards. In particular assurance engagement included the following Verification of the application of the Report content, and principles as mentioned in the GRI

Standards, and the quality of information presented in the Report over the reporting period ; Review of the policies, initiatives, practices and performance described in the Report; Review of the disclosures made in the Report against the requirements of the GRI Standards and

AA1000AS (2008), with a Type 01, limited level of assurance; Verification of the reliability of the GRI Standards disclosures (as identified under materiality test); Specified information is selected based on the materiality determination and needs to be meaningful

to the intended users; Confirmation of the fulfilment of the GRI Standards; ‘in accordance' with the Comprehensive criteria,

as declared by the management of NMDC

The reporting boundary is based on the internal and external materiality assessment covering the following units of NMDC in India

Bailadila Iron ore Mines –Kirandul Complex, Bacheli Complex Donimalai Iron Ore Mines & Kumarswamy Iron ore Mines - Donimalai Complex, Karnataka Diamond Mining Project –Panna, Madhya Pradesh Pellet Plant –Donimalai, Karnataka Nagarnar Iron & Steel Plant – Jagdalpur, Chhattisgarh NMDC Corporate Office – Hyderabad, Telangana

Our engagement did not include an assessment of the adequacy or the effectiveness of NMDC’s strategy or management of sustainability related issues. During the assurance process, TUVI did not come across the limitations to the scope of the agreed assurance engagement. The financial disclosures in the Report are based on the audited financial statements issued by the Company's statutory auditors. Further, Tax transparency report was not discussed and referred in the Report and was not included in the scope and boundary of verification and assurance. The verification of financial data taken from the annual report is not within the scope of our work. No external stakeholders were interviewed as a part of the sustainability engagement for the period FY 2017-18

Verification Methodology This assurance engagement was planned and carried out in accordance with the GRI Standards and AA1000AS (2008). The Report has been evaluated against the following criteria:

Sus

tain

abili

ty A

ssur

ance

Ser

vice


2 | P a g e TÜV®

Adherence to the principles of Stakeholder inclusiveness, Materiality, Responsiveness, Completeness, Neutrality, Relevance, Sustainability context, Accuracy, Reliability, Comparability, Clarity and Timeliness; as prescribed in the GRI Standards and AA1000AS (2008);

Application of the principles and requirements of the GRI Standards for its 'in accordance' Comprehensive criteria.

During the assurance engagement, TUVI adopted a risk-based approach, concentrating on verification efforts on the issues of high material relevance to NMDC’s business and its stakeholders. TUVI has verified the statements and claims made in the Report and assessed the robustness of the underlying data management system, information flow and controls. In doing so:

TUVI reviewed the approach adopted by NMDC for the stakeholder engagement and materiality determination process. TUVI performed limited internal stakeholder engagement to verify the qualitative statements made in the Report;

TUVI verified the sustainability-related statements and claims made in the Report and assessed the robustness of the data management system, information flow and controls;

TUVI examined and reviewed the documents, data and other information made available by NMDC for the reported disclosures including the Disclosure on Management Approach;

TUVI conducted interviews with key representatives including data owners and decision-makers from different functions of the NMDC during the site visit;

TUVI performed sample-based reviews of the mechanisms for implementing the sustainability related policies, as described in NMDC’s Sustainability Report;

TUVI verified sample-based checks of the processes for generating, gathering and managing the quantitative data and qualitative information included in the Report for the reporting period.

Opportunities for Improvement The following is an extract from the observations and opportunities for improvement reported to the Management of NMDC and are considered in drawing our conclusions on the Report; however they are generally consistent with the Management’s objectives.

Opportunities are as follows:

NMDC can develop the Risk Heat Map (sensitivity analysis) for all material topics to envisage the mitigation plan. NMDC can strategize an ESG risk heat map for linkage to Enterprise Risk Management

NMDC can plan for calculating scope 3 GHG emissions along with third party verification of GHG data

NMDC shall develop the Investment Grade Energy Saving Scheme NMDC shall conduct the labour practice audit on periodic basis NMDC can deploy more training on process and functional safety, Human Rights, Anti-corruption Though several initiatives are implemented for safety, NMDC can further focus on the functional

and behavioural safety. NMDC can employ targeted measures to improve technical and organizational safety standards and make people more aware of workplace safety issues with focus on its own employees, external parties and third parties

Conclusions The Sustainability Report 2017-18 is prepared based on GRI Standards Reporting Principles & Standard Disclosures for ‘in accordance’ Comprehensive option. In our opinion, based on the scope of this assurance engagement, the disclosures on sustainability performance reported in the Report along with referenced information provides a fair representation of the material topics, related strategies, performance disclosure & meets the general content & quality requirements of GRI Standards - Comprehensive option.

Universal Standards: NMDC followed GRI 101: Reporting Principles for defining report content and quality. GRI 102: General Disclosures are followed for reporting the information about an organization’s profile, strategy, ethics and integrity, governance, stakeholder engagement practices, and reporting process. Further GRI 103 is opted for Management Approach to report the information about how an organization manages a material topic. TUV are of the opinion that the reported disclosures generally meet the GRI Standards reporting requirements for 'in accordance’ Comprehensive reporting.

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Topic-specific Standards 200 series (Economic topics) 300 series (Environmental topics) 400 series (Social topics): These Topic-specific Standards are used to report information on an organization’s impacts related to economic, environmental, and social topics. TUV are of the opinion that the reported material topics and topic-specific Standards the organization uses to prepare its sustainability report are appropriate identified and addressed. The material Topics are as below

GRI 201: Economic Performance GRI 203: Indirect Economic Impacts GRI 204: Procurement Practices GRI 205: Anti-corruption GRI 301: Materials GRI 302: Energy GRI 303: Water GRI 304: Biodiversity GRI 305: Emissions GRI 306: Effluents and Waste GRI 307: Environmental Compliance GRI 401: Employment GRI 403: Occupational Health and Safety GRI 404: Training and Education GRI 405: Diversity and Equal Opportunity GRI 406: Non-discrimination GRI 407: Freedom of Association and Collective Bargaining GRI 413: Local Communities

Limited Assurance Conclusion: On the basis of the procedures we have performed, nothing has come to our attention that causes us to believe that the information subject to the limited assurance engagement is not prepared, in all material respects. TUVI found the sustainability information is reliable in all material respects, with regards to the reporting criteria (“Comprehensive”) of GRI Standards.

TUVI did not perform any assurance of procedures on the prospective information, such as targets, expectations and ambitions, disclosed in the Sustainability Information. Consequently, TUVI draws no conclusion on the prospective information. This assurance statement has been prepared in accordance with the terms of our engagement. Limited level assurance engagement with respect to sustainability related data involves performing procedures to obtain evidence about the Sustainability Information. The procedures performed depend on the practitioner’s judgment, but their nature is different from, and their extent is less than, a reasonable level assurance engagement. It does not include detailed testing of source data or the operating effectiveness of processes, internal controls and consequently they do not enable us to obtain the assurance necessary to become aware of all significant matters that might be identified in a reasonable level assurance engagement.

TUVI has evaluated the Report’s adherence to the following principles with respect to the requirements of the GRI Standards. Stakeholder Inclusiveness: Stakeholder identification and engagement is carried out by NMDC on a periodic basis to bring out key stakeholder concerns as material topics of significant stakeholders. In our view, the Report meets the requirements. Materiality: The materiality assessment process has been carried out, based on the requirements of the GRI Standards, considering topics that are internal and external to the Company’s range of businesses. The Report fairly brings out the aspects and topics and its respective boundaries of the diverse operations of NMDC. In our view, the Report meets the requirements.

Responsiveness: TUVI believes that the responses to the material topics are fairly articulated in the report, i.e. disclosures on NMDC’s policies and management systems including governance. In our view, the Report meets the requirements.

Completeness: The Report has fairly disclosed the General and Specific Standards Disclosures, including the Disclosure on Management Approach, covering the sustainability strategy, management approach, monitoring systems and sustainability performance disclosure against the GRI Standards, 'in accordance' Comprehensive option. In our view, the Report meets the requirements.

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Reliability: The majority of the data and information was verified by TUVI’s assurance team at NMDC’s head office and found to be fairly accurate. Some inaccuracies in the data identified during the verification process were found to be attributable to transcription, interpretation and aggregation errors and these errors have been corrected. Therefore, in accordance with the GRI Standards and limited level assurance engagement, TUVI concludes that the sustainability data and information presented in the Report is fairly reliable and acceptable. In our view, the Report meets the requirements.

Neutrality: The disclosures related to sustainability issues and performances are reported in a neutral tone, in terms of content and presentation. In our view, the Report meets the requirements.

TUVI expressly disclaims any liability or co-responsibility for any decision a person or entity would make based on this Assurance Statement. The intended users of this assurance statement are the management of NMDC. The Management of the Company is responsible for the information provided in the Report as well as the process of collecting, analyzing and reporting the information presented in the web-based and printed Reports, including website maintenance and its integrity. TUVI’s responsibility regarding this verification is in accordance with the agreed scope of work which includes non-financial quantitative and qualitative information (Sustainability Performance – environmental and social disclosure) disclosed by NMDC in the Report. This assurance engagement is based on the assumption that the data and the information provided to TUVI are complete and true.

TUV’s Competence and Independence TUVI is a global provider of sustainability services, with qualified environmental and social assurance specialists. TUVI states its independence and impartiality with regard to this assurance engagement. In the reporting year, TUVI did not work with NMDC on any engagement that could compromise the independence or impartiality of our findings, conclusions and recommendations. TUVI was not involved in the preparation of any statements or data included in the Report, with the exception of this Assurance Statement. TUVI maintains complete impartiality toward any people interviewed during the assurance engagement.

For and on behalf of TUV India Private Limited

Manojkumar Borekar Project Manager and Reviewer Head – Sustainability Assurance Service TUV India Private Limited

Date: 01/03/2019 Place: Pune, India Project No : 8116667144 www.tuv-nord.com/in

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Thinkstep Sustainability Solutions Private Limited (TSSSPL) has facilitated NMDC in its endeavour to take the Sustainable Development to greater heights TSSSPL is associated in carefully crafted measures towards implementation of Sustainability Practices in NMDC viz. preparation of the second Corporate Sustainability Report for 2017-18 as per Global Reporting Initiative (GRI) Standards Comprehensive option, Third party Assurance, obtaining the GRI Content Index Service, and formulation of key elements of the successful implementation of Sustainable Development. These elements include sustainability strategy, functions, goals, KPIs and sustainability projects. TSSSPL is a proud partner of NMDC journey towards a globally respected Sustainable Organization enabled by its strong culture of pursuit of excellence and the core value of being a responsible and committed organization to its stakeholders.

TSSSPL, a subsidiary of thinkstep AG, Germany is the leading sustainability consulting and software company in India engaged in providing services, software solutions and data related to corporate and product sustainability to prestigious business organizations, both private and public. Some of the key services offered by TSSSPL include Development of Sustainability Strategy, Sustainability Report preparation, Carbon Footprint, Life Cycle Assessment, Benchmarking.

TSSSPL has also world class software for sustainability monitoring and assessment. It has two best in class software namely ‘GaBi’ for carrying out Life cycle assessment and performing eco-design while ‘SoFi’ for design and deployment of enterprise sustainability management tool in large organizations. TSSSPL having offices in Mumbai and Bhilai has been supporting sustainability focused companies across various sectors such as mining, metal, construction, cement, energy, FMCG, automobile, chemical etc. since 2009 in India.

Regd. Office : 10-3-311/A, Khanij Bhavan, Castle Hills, Masab Tank

Hyderabad - 500 028, Telangana, INDIA www.nmdc.co.in @nmdclimited

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