Mining resumes at state-owned NMDC's Donimalai mine in Karnataka

Topics NMDC | Karnataka | Mining industry

Representational image

State-owned NMDC on Thursday announced resuming mining operations at its Donimalai iron ore mine in Karnataka.

The operations have been resumed after receiving permission from the state government, NMDC said in a BSE filing.

In 2018, NMDC had suspended iron ore mining at the mine following a decision of the state government to impose 80 per cent premium on the iron ore sales from the mine.

"After obtaining the lease extension of Donimalai iron ore mine (ML-2396) for 20 years w.e.f (with effect from) March 11, 2018, from the Government of Karnataka and completing the associated statutory requirements, (it) was restarted on February 18, 2021, forenoon," the filing said.

NMDC, under the Ministry of Steel, is the country's largest iron ore miner.

The company, which has been in the business of mining iron ore for over six decades, operates three iron ore complexes in the country.

While one is located at Donimalai in Karnataka, two are in the Dantewada district of Chhattisgarh, contributing 70 per cent to the company's total output.

The capacity of Donimalai mine is 7 million tonnes per annum (MTPA). The mine has reserves of about 90-100 million tonne (MT) which may last for the next 15-20 years.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel