In a recent notification issued, NMDC has clarified that amid pending decision on the representation by the Karnataka govt, iron ore production has been temporarily suspended. Donimalai iron ore mines lease has already been extended by the Cabinet of Karnataka Govt. w.e.f 04.11.2018 for the 20 years up to 03.11.2038 on payment of 80% of the average sale value as published by IBM. NMDC has also received the communication letter in this regard, the notification said.
In its further clarification, the company said that neither additional condition (80% of the average sale value) put on the miner is economically viable nor it is as per the MMDR (Amendment) act 2015. Company already raised this issue before the Chief Minister of Karnataka for their representation and in response, a high-level meeting was called on 14.11.2018 and directed the concerned ministry to relook into the matter. The meeting ended on a positive note and as per information received by NMDC, Karnataka Cabinet has not taken any decision to cancel the lease of Donimalai to NMDC.
Therefore, Donimalai iron ore mine production has been temporarily suspended.
NMDC (National Mineral Development Corporation) is India’s largest iron ore miner with annual production of around 35.5 MnT p.a. in FY18. Out of this, 12 MnT was produced from NMDC’s mine in Karnataka, combining from Donimalai and Kumaraswamy.
NMDC Donimalai has EC limit of 7 MnT p.a. and produces around 6-6.5 MnT iron ore annually.
Karnataka produces around 30 MnT iron ore annually.
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