NMDC’s Donimalai iron ore mine lease issue resolved

In a major relief for NMDC, the long-pending issue of Donimalai iron ore mine (ML No.2396) lease, which was suspended since November 2018, has finally resolved with the government endeavour.

The decision has not only paved way for operationalisation of the mine but also is a timely decision taken in a situation when the steel companies are facing a shortage of supply of iron ore.

Exercising the power conferred to GOI under Section 31 of the MMDR Act, 1957, the Government reached at an agreement with the Karnataka government and the Ministry of Steel to extend Donimalai iron ore lease.

Donimalai iron ore mine, which has total concession area of 597.54 Ha and estimated resource of 149 mt, shall increase the annual iron ore production in the country by 7 MTPA. Based on the existing high price of ore, it is expected that Donimalai iron ore mine will contribute around ₹400 crore to the State Exchequer, during the ongoing financial year.

Job opportunities

The operationalisation of the mine would contribute a total of around ₹1,100 crore to the State exchequer per annum. It will also take the nation a step closer towards the vision of the government to achieve 300 MTPA crude steel capacity by 2030-31. The mine shall offer direct employment to thousands of people (including the contract labours) and create indirect employment opportunity for lakhs of people.

The operationalisation of the mine shall bring a sense of security for more than two dozen SMEs (with 100s of employees) near Donimalai area that were directly or indirectly dependent on NMDC for supply of raw material.

Further, the local community dependent on NMDC CSR activities will also benefit from the lease revival, according to an NMDC statement.