National Mineral Development Corporation (NMDC.NS) announced the commencement of mining operations at the Tokisud North coal mine in Hazaribagh, Jharkhand. The project, spanning over 550 hectares, is expected to boost domestic coal supply, strengthen NMDC’s portfolio, and support India’s energy and industrial growth ambitions.
NMDC Expands Coal Mining Footprint
National Mineral Development Corporation (NMDC) has officially begun mining operations at the Tokisud North coal mine, located in Hazaribagh district, Jharkhand. The announcement, made on January 23, 2026, marks a significant step in NMDC’s diversification strategy beyond iron ore into coal production.
Key Highlights
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Operational Launch: Mining has commenced at Tokisud North, a block covering 557 hectares with an estimated capacity of 2.32 million tonnes per annum (MTPA).
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Strategic Importance: The project strengthens NMDC’s role in India’s energy security, reducing reliance on imported coal.
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Sectoral Context: India’s coal demand continues to rise, driven by power generation, steelmaking, and industrial growth.
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Government Push: The commencement aligns with the Ministry of Coal’s allocation program, aimed at accelerating domestic production.
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Investor Sentiment: Analysts expect the move to enhance NMDC’s revenue streams and diversify its resource portfolio, reinforcing long-term growth prospects.
Why It Matters
The operationalization of Tokisud North highlights NMDC’s commitment to supporting India’s energy transition, ensuring reliable coal supply while expanding its footprint in the mining sector.
Sources: Reuters, Global Energy Monitor, Ministry of Coal filings