NMDC and MIDHANI Join Hands for Tungsten Mining

NMDC, one of India's biggest mineral producers, and Mishra Dhatu Nigam (MIDHANI) have signed a memorandum of understanding to develop tungsten minning and processing technology for the metal, a key ingredient in making heavy-alloy ammunition systems for the armed forces. 

The two state-owned companies are slated to tap their complementary strengths to pursue a venture in developing tungsten mineral assets in India and abroad. MIDHANI, a defence sector PSU, has expertise in special metals and alloys. Availability of tungsten in India is limited and the metal is not mined because the ores are of low grade, NMDC said in a statement. The country's requirement of tungsten is met mainly through imports. 

Extracting tungsten from low-grade deposits depends largely on developing suitable beneficiation technology. It is mainly Rajasthan that has tungsten reserves. 

There is a growing requirement in India for tungsten products in industrial and defence applications, where it has been identified as a strategic material. The market for tungsten metal powder in the country is estimated at 150 tonnes per month. 

China, world's largest producer of tungsten, accounts for over 80% of global output. Vietnam with 5,000 tonnes, Russia (2,500 tonnes), Canada (1,700 tonnes), Bolivia (1,200 tonnes) and Rwanda (1,000 tonnes) are the other major producers. Tungsten production globally rose to 87,000 tonnes in 2015 from 86,800 tonnes in 2014, according to the US Geological Survey.

With a strong mining background, NMDC has been working on to acquire mineral assets abroad. And Midhani, with its expertise in metals and alloys, is expected to provide technical support and coordination for Ammonium Paratungstate (APT). Their complementary strengths can facilitate in developing a venture for tungsten mineral assets in India and abroad. This alliance would strengthen both NMDC’s and Midhani’s resolve to explore jointly the available tungsten assets in India and consider investment and development abroad. The technology could also be used converting tungsten ore to APT and tungsten powder.

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