What Happened
- Adani Ports and Special Economic Zone's (APSEZ) subsidiary, Adani Gangavaram Port Limited (AGPL), signed a Memorandum of Understanding (MoU) with NMDC Limited and Vale S.A. of Brazil on February 21, 2026, at the India-Brazil Business Forum Summit in New Delhi.
- The MoU was signed in the presence of Piyush Goyal, Union Minister of Commerce and Industry, during Brazilian President Luiz Inácio Lula da Silva's official state visit to India.
- The three parties will jointly develop an iron ore blending facility and a dedicated Special Economic Zone (SEZ) ecosystem at Gangavaram Port in Visakhapatnam, Andhra Pradesh.
- Gangavaram Port's handling capacity will be expanded to up to 75 Million Metric Tonnes (MMT), and the port will be upgraded to accommodate Valemax vessels — the world's largest Very Large Ore Carriers (VLOCs), with carrying capacity up to 400,000 DWT.
- The facility will enable blending of Indian iron ore (NMDC's high-grade ore from Chhattisgarh and Karnataka) with Brazilian iron ore (Vale's ore), creating blended products for export to global steel markets.
Static Topic Bridges
NMDC Limited: India's Largest Iron Ore Producer
NMDC Limited (National Mineral Development Corporation) is India's largest iron ore producer and a Navratna Central Public Sector Enterprise (CPSE) under the administrative control of the Ministry of Steel. Incorporated in 1958, NMDC operates fully mechanised open-cast iron ore mines in Chhattisgarh (Bailadila complex) and Karnataka (Donimalai, Kumaraswamy). In FY 2025-26, NMDC became the first Indian mining company to produce 50 million tonnes (MT) of iron ore in a single financial year. NMDC's ore is high-grade (62-65% Fe content), among the best quality globally. The corporation also explores for other minerals (diamond, copper, rock phosphate) and is developing its own steel plant (Nagarnar Steel Plant in Chhattisgarh, now Nmdc Steel Limited).
- Full name: NMDC Limited (formerly National Mineral Development Corporation)
- Administrative ministry: Ministry of Steel
- PSE status: Navratna CPSE (since 2008)
- Government shareholding: ~69.65% (as of February 2020)
- Headquarters: Hyderabad, Telangana
- Iron ore mines: Bailadila (Dantewada, Chhattisgarh) — Deposits 14/11C, 5, 10/11A; Donimalai and Kumaraswamy (Karnataka)
- FY 2025-26 production milestone: 50 MT (first Indian miner to reach this level in a single year)
- Other minerals: diamond (Majhgawan mine, Panna, MP — only organised diamond producer in India), rock phosphate, copper
Connection to this news: NMDC brings its high-grade domestic iron ore supply to the blending facility at Gangavaram. Combining NMDC's ore with Vale's Brazilian ore enables creation of blended products customised to different steel-mill specifications, expanding market reach for both parties.
Vale S.A. and Global Iron Ore Trade
Vale S.A. is a Brazilian multinational mining company and the world's largest producer of iron ore and nickel. Headquartered in Rio de Janeiro, Vale operates mines in Brazil (Carajás, Itabira), Canada, and globally. Brazil is the world's second-largest iron ore exporter (after Australia), and Vale's Carajás ore (65% Fe) is among the highest-grade globally. India-Brazil relations have expanded through economic partnerships in mining, agriculture, and energy. Vale's engagement with India — through the Gangavaram MoU — represents a strategic bet on India's growing steel consumption, which is expected to reach 300 MT capacity by 2030 as per India's National Steel Policy 2017.
- Vale's status: World's largest iron ore producer and exporter; world's largest nickel producer
- Headquartered: Rio de Janeiro, Brazil
- Key iron ore source: Carajás mine complex, Para state, Brazil (65% Fe grade)
- Brazil's iron ore export rank: Second globally (after Australia)
- Valemax vessels: Very Large Ore Carriers (VLOCs) capable of carrying up to 400,000 DWT; among the world's largest bulk carriers
- India-Brazil bilateral context: MoU signed during Lula's state visit, Feb 2026 — signals deepening strategic and economic partnership
- India's steel capacity target: 300 MT by 2030 (National Steel Policy 2017)
- India's current steel production (FY 2024-25): ~144 MT (second-largest globally after China)
Connection to this news: Vale's participation brings Brazilian high-grade ore to a blending hub at Gangavaram, combining it with NMDC's Indian ore. The blended product targets steel mills in India and across Asia seeking specific iron content specifications, with Gangavaram as the export gateway.
Gangavaram Port and India's Port-Led Development Strategy
Gangavaram Port is a deep-water, all-weather, multi-purpose port located in Visakhapatnam, Andhra Pradesh. Operational since 2009, it has a current cargo handling capacity of 64 MMT per annum. The port was acquired by APSEZ (Adani Ports and Special Economic Zones) in 2021-22, making it part of India's largest commercial port operator. At 21 metres depth, Gangavaram is one of India's deepest natural ports, capable of handling Supercapesize vessels (up to 200,000 DWT). The MoU with NMDC and Vale will expand its capacity to 75 MMT and upgrade it to handle Valemax vessels (up to 400,000 DWT) — making it the first Indian port capable of berthing these mega-carriers.
- Location: Visakhapatnam, Andhra Pradesh
- Operational since: 2009
- Current capacity: 64 MMT per annum
- Depth: 21 metres (current); expansion planned for Valemax compatibility
- Owner: Adani Gangavaram Port Limited (AGPL), a subsidiary of APSEZ
- Concession period: Until 2059 (from Government of Andhra Pradesh)
- Berths: 9 (as of current configuration)
- Post-MoU capacity target: up to 75 MMT
- APSEZ acquisition: Completed 2021-22 (full ownership including GoAP's 10.4% stake)
- India's largest commercial port operator: APSEZ (handles ~30% of India's container traffic)
- Special Economic Zone (SEZ): Iron ore blending SEZ to be co-developed by APSEZ, NMDC, and Vale at Gangavaram
Connection to this news: Gangavaram Port's deep draft, rail-road connectivity, and APSEZ's port management expertise make it the natural location for an iron ore blending and export hub. The SEZ framework within the port will provide tax incentives for the blending and value-addition activities, making the facility globally competitive.
Key Facts & Data
- MoU date: February 21, 2026
- Parties: AGPL (APSEZ subsidiary), NMDC Limited, Vale S.A. (Brazil)
- Occasion: India-Brazil Business Forum Summit, New Delhi; during President Lula's state visit
- Witnessed by: Piyush Goyal, Union Minister of Commerce and Industry
- Location of proposed facility: Gangavaram Port, Visakhapatnam, Andhra Pradesh
- Port capacity expansion: Current 64 MMT → up to 75 MMT
- Vessel upgrade: will accommodate Valemax VLOCs (up to 400,000 DWT)
- NMDC production milestone: 50 MT iron ore in FY 2025-26 (first Indian miner to reach this)
- Vale's status: World's largest iron ore producer
- NMDC ministry: Ministry of Steel (Navratna CPSE)
- APSEZ: Largest private port operator in India; ~30% of India's container traffic
- India's steel capacity target: 300 MT by 2030 (National Steel Policy 2017)
- India's current steel production: ~144 MT (2nd globally)
- Gangavaram Port concession: Government of Andhra Pradesh, until 2059