NMDC sales from Kirandul facility, Chhattisgarh have been put to halt since 7th June (Friday) over protest from tribal’s over mining in Deposit 13. The tribals from some 200 villages of Dantewada, Sukma and Bijapur districts, on Friday launched an indefinite protest in front of NMDC’s Kirandul facility, demanding the PSE should abandon plan to mine the hill. This is owing to their religious belief that the excavations of the ore in Nandaraj hills will destroy their religious site.
Earlier, NMDC announced development of its 10 MnT Iron Ore Deposit-13 in Chhattisgarh through a joint venture of NMDC-CMDC (or NCL), with NMDC holding 51% share and CMDC having 49% share. Deposit 13 has a reserve of around 326 MnT high grade ore. NCL is the owner of the Deposit 13, also, the mining lease registration and the land required for the deposit will be in the name of joint venture company NCL. However, the JV Company NCL is only restricted to selling of the iron ore from the deposit while the contract of excavation and mine development has been awarded to Adani Enterprises through transparent reverse bidding process. As per the local’s report, the mine area is supposed to be house their deity.
Outlook: As per sources, if NCL tries to begun mining at Deposit 13, the tribal’s may start hindering operation and sales from Bacheli facility too and in case of continual obstruction from tribals, the production – sales from NMDC may further be affected.
NMDC produced 32.36 MnT iron ore in FY19, down 9% Y-o-Y. Out of this 23.39 MnT was produced from Chhattisgarh mines. Out of 23.39 MnT iron ore produced from its Chhattisgarh mines, around 10.5 MnT was from its Kirandul mines.
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