Production at Chhattisgarh in 2020-21 was 26.56 MT as compared to 24.49 Mt, while sales rose to 25.85 MT from 24.46 MT. Production at Karnataka stood at 7.55 MT as compared to 7 MT, while sales rose to 7.42 Mt from 7.05 Mt.
The company achieved the growth despite the Donimalai mine at Karnataka remaining closed for almost 10 months during the last fiscal. NMDC
lost nearly 50 days of production at Chattisgarh due to rain. Normally mining activity
at Chattisgarh will hit due to rain for around 20-25 days in a year.
It may be noted, due to the pandemic the company lost one quarter which lead to around 1.82 million tonnes production loss during the first quarter of 2020-21
NMDC's Donimalai in Karnataka was non operational since 2018 after NMDC
and Karnataka Government got into legal battle over Donimalai mine. Government of India has entered into an agreement with the Government of Karnataka and Ministry of Steel to extend Donimalai Iron ore lease. NMDC has been operating the mine, but operations were suspended since November 2018.
In December NMDC's Donimalai Iron ore lease was extended for 20 yrs and the company restarted the mining activities from February and did only 600,000 tonnes during the fiscal, while on an average the company used to mine around 6 MT per year before it was closed.
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