In the light of cognizance taken by the Government that mineral development sector would also be one of the main areas for generation of economic resources and raising of general economy in the State, the Nagaland State Mineral Development Corporation Limited (NSMDCL), fully owned by the State Government was setup by the Government of Nagaland and incorporated in May 1981 under the Companies Act 1956.

The Corporation started functioning as a separate office since 1983 with the main objectives of:

Initiating commercial exploitation of limestone, coal and other mineral deposits.
Promoting, establishing and developing economic activities in mines and mineral based industries.

The Government desires to exploit the rich minerals to enhance the economic status of the state with a view to uplift the living condition of the rural people where rich mineral deposits are available and NSMDCL is responsible for exploitation of the mineral resources available plentifully in the state after initial primary surveys and formalities are completed by the Department of Geology & Mining.