NMDC Operations Hit By Work-To-Rule Protest, Shares Take a plunge

Shares of NMDC, India’s largest iron ore producer, declined due to a slowdown in operations caused by a work-to-rule protest by trade unions.

A work-to-rule protest involves employees adhering strictly to official procedures, which reduces production without halting work completely.

In a statement, NMDC explained that trade unions had initiated a slowdown in operations as part of the ongoing wage settlement dispute. The company added that conciliation proceedings before the Chief Labour Commissioner in New Delhi are scheduled for March 17, 2025.

Despite the ongoing protests, NMDC is working to resolve the issue and resume normal production. However, the protest has led to a 30-40% reduction in daily production at its iron ore projects in the Kirandul, Bacheli, and Donimalai complexes.

NMDC reassured that its assets are fully insured and that the financial impact of the strike is currently negligible. The company is actively striving to resolve the situation and restore production levels to normal.

In its latest operational update, NMDC reported a 17.85% year-on-year increase in iron ore production, reaching 4.62 million tonnes (MT) in February 2025, compared to 3.92 MT in February 2024. However, sales decreased slightly to 3.98 MT, compared to 3.99 MT last year.

Operations in Chhattisgarh experienced a minor dip, with production falling by 1.17% YoY to 3.37 MT, although sales rose slightly to 2.79 MT from 2.78 MT. In contrast, production in Karnataka surged by 145.09% YoY to 1.25 MT, though sales dropped 1.65% YoY to 1.19 MT.

For FY25, cumulative production up to February stood at 40.49 MT, marking a 0.62% YoY increase, while sales slightly declined by 0.69% YoY to 40.20 MT.

Shares of NMDC were trading at ₹66.31, more than 1% lower than the opening price of ₹67.82.