The strategic hunt for critical minerals in India is drawing fresh interest from established industrial players. Odisha-based Indian Metals and Ferro Alloys (IMFA), a dominant force in the ferro alloys sector, is now charting a course to enter this crucial domain. The company aims to leverage its extensive background in mining and metals to secure future supplies and tap into a growing national priority.
Leveraging Decades of Mining Expertise
IMFA's managing director, Subhrakant Panda, confirmed the company's interest, stating that their plans are currently at a "preliminary stage." He emphasized that the company's deep-rooted experience provides a natural advantage. "We have over three decades of experience in mining, including being a pioneer in developing underground chromite mines in Odisha’s Sukinda valley, as well as processing minerals," Panda told TOI.
He pointed out that the move into critical minerals represents a strategic and logical extension of their existing operations. "Given the adjacency, we are keen on entering the critical minerals space and believe it is a strategic fit. We are working on identifying how we can create value," he added. The company's proficiency in both mining and smelting operations offers a solid foundation for this new venture.
Strong Financials and Global Ambitions
Panda highlighted IMFA's robust financial health as a key enabler for this expansion. The company boasts a debt-free balance sheet and generates significant accruals from its current operations. This financial strength positions it well to fund new projects without immediate strain.
"I do not see any issue in funding a critical minerals venture once we identify the right opportunity," Panda asserted when questioned about potential fundraising needs. Furthermore, the company is not limiting its vision to domestic opportunities. Panda revealed that IMFA is "actively looking at opportunities" overseas and will thoroughly evaluate any attractive propositions that align with their strategy.
IMFA's Established Industrial Footprint
IMFA is a formidable player in its core business. The publicly listed company, with shares on both the BSE and NSE, counts global giants like Korean steelmaker Posco among its customers. Its operational strength is underscored by:
- Six furnaces with a combined capacity of 190 MVA.
- An annual production capacity of 284,000 tonnes across its facilities in Therubali and Choudwar, Odisha.
- A dedicated 204 megawatt power plant that supports its smelting and mining activities.
The company's primary product, ferro chrome, is a crucial input for stainless steel production, giving it a central role in the metals value chain. This planned diversification into critical minerals signifies a forward-looking approach to align with India's resource security goals and capitalize on emerging economic opportunities.
