The Karnataka forest department has permitted Kudremukh Iron Ore Company (KIOCL), a Union government undertaking, to explore iron and manganese ores in the Nirthadi Reserve Forest, Holalkere taluk, Chitradurga.

The clearance allows diversion of 64.7 hectares of forest land, including 27.2 hectares of unbroken forest, under mining lease no. 1177 held by Kashimurthy Shetty & Sons, for a one-year prospecting period. The project involves felling 700–1,000 trees, creating 24 trial trenches, drilling 34 boreholes, and digging sump pits for sampling. Approach roads will cut through forest patches in Sadarahalli and Keshavapura. Of the total area, 37.6 hectares were previously mined by Kashimurthy Shetty & Sons, while the remaining is pristine forest. A

Chitradurga DCF inspection report highlights that Nirthadi’s tropical dry deciduous forest, situated on a ridge, requires soil and moisture conservation, but warns the proposal "will ultimately lead to future mining operations." Wildlife here includes leopards, sloth bears, jackals, pangolins, porcupines, monitor lizards, wild boars, and peafowls.