As per the recent press release, NMDC Donimalai mine is to resume operations shortly, after closure of the mine for more than eight months, NMDC is set to resume operations in accordance with the Hon’ble High Court of Karnataka decision.
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 avoid further loss to National and State Exchequer apart from providing the much needed iron ore to the steel industry for the development of the State.
Shri N. Baijendra Kumar, IAS, CMD said “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. “ He also expressed his gratitude for all the co-operation extended by Ministry of Steel, Government of Karnataka, Legal Bodies and particularly all stakeholders for having faith on NMDC at all times.
Last week, the Karnataka High Court announced its final judgment in favor of NMDC, thus need not pay premium for mining lease renewal at its Donimalai mines.
Iron ore operations were 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 Donimalai has EC limit of 7 MnT p.a. and produces around 6-6.5 MnT iron ore annually.
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