The Karnataka government has cancelled its lease for the NMDC’s Donimalai iron ore mine. This will mean taking a production impairment of about six million tpa for NMDC.
The Karnataka government had initially renewed the mining lease for 20 years but later decided against it. The government is further planning to auction the mine instead. NMDC has now requested the Karnataka government to withdraw its letter cancelling the lease.
NMDC might also seek the Centre’s intervention in seeking an extension of the mining lease which will significantly add to its annual output.