Receive our newsletter – data, insights and analysis delivered to you
  1. News
July 18, 2019updated 02 Nov 2021 4:40am

NMDC to resume iron ore production at Donimalai mine

Indian state-controlled iron ore mining company National Mineral Development (NMDC) is set to resume operations at its Donimalai mine.

Indian state-controlled iron ore mining company National Mineral Development (NMDC) is set to resume operations at its Donimalai mine.

The restarting follows the directive of the High Court of Karnataka, India, and comes after the mine was closed for more than eight months.

The company has approached the Government of Karnataka to help with the lease deed execution and production restart at the mine.

According to the company, the mining resumption at Donimalai would avoid further loss to national and state exchequer.

NMDC chairman and managing director Baijendra Kumar 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.”

NMDC explores and develops iron ore at Donimalai mine to export ore to Japan and South Korea.

The mine has the capacity to produce four million tonnes of RoM ore a year.

In December last year, NMDC reportedly launched legal action against the southern state of Karnataka to prevent demands for a larger share of revenue from Donimalai mine iron ore sales.

A before the launch of official legal proceedings, NMDC suspended production. The state government had imposed an 80% premium on iron ore sales from the mine, the company noted in a regulatory filing.

Established in 1958, NMDC is under the administrative control of the Indian Ministry of Steel.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU