Biznextindia : Public sector Iron Ore miner NMDC is set to resume operations at its Donimalai Iron Ore Mine in accordance with the Karnataka High Court decision. The mine was closed for almost 8 months.
NMDC has approached Government of Karnataka to facilitate execution of lease deed and resumption of operations at Donimalai Mine. The resumption of mining at Donimalai would augment Iron Ore supply to the Steel Industry.
“Though, it had been a long wait for NMDC, this news has brought in lot of cheers especially to Steelmakers of Karnataka, Investors, Mining Fraternity, Customers and employees who have been eagerly waiting for this” said N. Baijendra Kumar, IAS, CMD.
The Donimalai block in Karnataka has an estimated iron deposit of 143 million tonne (MMT) worth around Rs 40,000 crore and it was on lease to NMDC for 50 years since 1968. But after the lease period ended on November last year, the Karnataka government decided to levy a premium on the iron ore extracted from the mine. However, NMDC did not agree to pay the premium and shut down mining operations there.