India’s state-owned iron ore miner has established a vehicle for financing foreign mineral investments, but one of the commodities named in its acquisition mandate is now reportedly off its immediate expansion agenda.
NMDC incorporated NMDC Global IFSC Limited in Gujarat’s GIFT City, according to a stock-exchange filing. In comments published by Business Standard, the company said the subsidiary could support overseas acquisitions, joint ventures, and equity investments involving nickel, lithium, cobalt, copper, and other minerals.
That overseas infrastructure now contrasts with a reported change in investment priorities. Two company officials told Reuters that NMDC had put its planned entry into nickel on hold, partly because of global oversupply, particularly in Indonesia.
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The company established its subsidiary after disclosing government clearance in March. NMDC told Business Standardthe entity could connect it with international mining companies, lenders, and sovereign investment partners. The subsidiary’s remit extends beyond nickel to gold, iron ore, and coking coal.
For nickel, however, the market outlook has changed sharply. On October 13, the International Nickel Study Group revised its 2026 balance from a projected 32,000-tonne deficit to a 19,000-tonne surplus. It now expects output of 3.868 million tonnes against consumption of 3.849 million tonnes.
The group projects a further 70,000-tonne surplus in 2027, with output reaching 4.071 million tonnes and demand around 4.002 million tonnes. Its October release also estimated that the 2025 surplus reached 299,000 tonnes.
Indonesia accounts for more than 60% of global nickel production, Reuters reported. Although the country has reduced mining quotas for 2026, the study group warned that Indonesian output remains an uncertainty in its forecasts.
The group also said nickel demand from electric vehicle batteries has developed more slowly than expected amid competition from lithium iron phosphate batteries.
India designated nickel as one of 30 critical minerals in July 2023. The country continues to depend on imported nickel, and its government is developing incentives for domestic processing, according to Reuters.
Another obstacle emerged in Russia. One NMDC official told Reuters that the miner had unsuccessfully sought a meeting with Nornickel despite repeated invitations, while exploring Russian nickel assets and supply arrangements.
NMDC’s wider overseas acquisition strategy remains broader than nickel. The company had previously identified opportunities in Africa, Australia, and South America, and its new financing subsidiary is not restricted to one mineral.
