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Long pending issue of Donimalai iron ore mine in Karnataka resolved: NMDC

In November 2018, the state government of Karnataka suspended all the operations of NMDC Limited in Donimalai iron ore mine

Long pending issue of Donimalai iron ore mine in Karnataka resolved, said NMDC
Long pending issue of Donimalai iron ore mine in Karnataka resolved, said NMDC
  • Long pending issue of Donimalai iron ore mine in Karnataka resolved, said NMDC on Friday

  • In November 2018, the state government of Karnataka suspended all the operations of NMDC Limited in Donimalai iron ore mine

New Delhi: Navratna Steel PSU NMDC Limited on Friday said that its long-pending issue of Donimalai iron ore mine in Karnataka has been finally resolved. The state government of Karnataka had suspended all the operations of NMDC Limited in the Donimalai iron ore mine in November 2018. “The long-pending issue of Donimalai iron ore mine (ML No.2396), which was suspended since November 2018, has finally concluded through the endeavour of the government. The decision has not only paved way for operationalization of the mine but also is a timely decision taken in a situation when the steel companies are facing a shortage of supply of Iron ore,” NMDC said in an official press release on Friday.

“Exercising the power conferred to GOI under section 31 of the MMDR Act, 1957, the Government of India reached at an agreement with Government of Karnataka and Ministry of Steel to extend Donimalai Iron ore lease,” NMDC further said.

Donimalai Iron ore mine, which has a total concession area of 597.54 Hectares and an estimated resource of 149 MT shall increase the annual Iron ore production in the country by 7 MTPA. Based on the existing high price of ore, it is expected that Donimalai Iron ore mine will contribute around INR 400 crore to the state exchequer, during the ongoing financial year.

ALSO READ: NMDC’s iron ore production goes up by 13% and sales by 18% in Nov 2020

The operationalisation of the mine would contribute a total of around INR 1,100 crore to the state exchequer per annum. It will also take the nation a step closer towards the vision of the Government to achieve 300 MTPA crude steel capacity by 2030-31. The mine shall offer direct Employment to thousands of people (including the contract labours) and create indirect employment opportunities for lakhs of people.

The operationalisation of the mine shall bring a sense of security for more than two dozen SMEs (with 100s of employees) near Donimalai area that were directly or indirectly dependent on NMDC for the supply of raw material. Further, the Local community dependent on NMDC CSR activities will not be deprived of benefits, like Hospital, Free Transport, RO water facilities etc.

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