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NMDC restarts operations at Donimalai Iron Ore mine

Our Bureau Hyderabad | Updated on February 19, 2021

To add about 7 MT per annum ore capacity

In a major boost to raising iron ore output, NMDC has begun mining operations at Donimalai mine in Karnataka, work on which was stalled after issues related to mining renewal was delayed.

While the mining lease was renewed, the mining operations were stalled due to delays in securing Government nod.

The State owned iron ore mining major in a regulatory filing has informed that after obtaining the Lease extension of the Donimalai Iron Ore Mine (ML-2396) for 20 years with effect from March 11, 2018 from the Karnataka Government and completing the associated statutory requirements, the company’s Donimalai Iron Ore Mine was restarted on February 18 forenoon.

The Donimalai mine is set to boost ore output of the company by about 7 million tonnes in full year of operation at about permitted 0.5-0.6 MT per month. It’s full impact will be felt in the next fiscal.

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The long pending issue of Donimalai mine, which was suspended since November 2018, has finally concluded through the endeavour of the Government. The decision has not only paved way for operationalisation of the mine but also is a timely as the country’s steel companies are facing a shortage of supply of Iron ore.

The Centre, while exercising the power under Section 31 of the MMDR Act, 1957, reached at an agreement with the Karnataka government and Ministry of Steel to extend Donimalai Iron ore lease.

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The Donimalai Iron ore mine has total concession area of 597.54 hectares and estimated resource of 149 MT. The operationalisation of the mine would contribute about ₹1,100 crore to the State exchequer per annum, NMDC had recently indicated.

The mining operations will help more than two dozen SMEs near Donimalai area that were directly or indirectly dependent on NMDC for supply of raw material.

During the day, NMDC shares were trading at ₹120.95, up ₹1 (+0.83 per cent) on the BSE today.

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Published on February 19, 2021
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