According to the sources report to SteelMint, Karnataka High Court has postponed today’s hearing, scheduled for an urgent hearing on NMDC Donimalai lease renewal pending decision on the representation by the Karnataka Govt.
As per the sources, High Court has rescheduled its hearing for the matter on Jan 22, 2019.
Last month, NMDC (National Mineral Development Corporation) – India’s largest iron ore mine had approached the Karnataka High Court for an urgent hearing on NMDC Donimalai lease renewal issue.
Iron ore operations are still on hold at NMDC’s Donimalai mine, which was renewed lease on 3rd Nov’18 for the next 20 years. But the State Govt. put the additional condition to pay 80% premium on iron ore sale value from Donimalai to the Karnataka state Govt. NMDC was in negotiation with the Govt of Karnataka over its decision to impose an 80% premium on iron ore sales from Donimalai. As the company’s earlier license did not include the premium.
NMDC’s iron ore sales decline sharply following Donimalai issue -: NMDC’s iron ore sales decreased by 62% M-o-M to 0.39 MnT in Dec’18 compared to 1.01 MnT in Nov’18. Amid suspension in iron ore mining activities in NMDC Donimalai, total sales volumes have come down drastically. NMDC sold all its iron ore from its Kumaraswamy mines recording a sharp decrease in its sales volume by almost three times.
NMDC Donimalai has EC limit of 7 MnT p.a. and produces around 6-6.5 MnT iron ore annually.
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