NMDC restarts work at Donimalai Mines in Karnataka

Hyderabad, Feb 18 (PTI): After over two years, state-owned NMDC Ltd (National Mineral Development CorporationLimited) resumed production of iron ore from DonimalaiMinesin Karnataka, the public sector enterprise said on Thursday.

The NMDC had, in December 2018,suspended mininginDonimalaidue to legal battle with the Karnatakagovernment over the issue of imposition of premium on thesale price of the iron oreextracted from themines.

''This is to inform that after obtaining the leaseextension of Donimalai Iron Ore Mine (ML-2396) for 20 yearswith effect from November 3, 2018 from the government ofof Karnataka (GoK) and completing the associated statutoryrequirements, the Donimalai iron ore mine,'' the NMDsaid in afiling with stock exchanges.

A senior official of NMDC toldPTI that the resumptionof mining atDonimalaiwould add production of 5-6 lakhtonnes of iron ore per month.