The government of the southern Indian state of Karnataka has issued an order effective from December 1 approving the commencement of iron ore mining operations by state-run miner NMDC Limited at its Donimalai block.
As per the order, NMDC can resume operations immediately after the latter agreed to make payment of 22.5 percent of the Indian Bureau of Mines (IBM)-determined sale price along with royalties and other statutory levies.
Mining operations at Donimalai were suspended in 2018, after NMDC did not accept the Karnataka government’s terms and conditions for payments for the renewal of its mining lease.
However, the state government said that mining operations could restart immediately subject to the condition of the miner securing fresh forest and environmental clearances, with NMDC officials claiming that it had already submitted applications seeking such clearances two years ago.
As per the new mining plan submitted by NMDC, it will produce 7 million mt of iron ore per annum from the Donimalai iron ore block.