India: Karnataka HC Announces Judgment in Favor of NMDC Donimalai Lease Renewal

According to market sources report to SteelMint, Karnataka High Court has today announced its final judgment in the pending Donimalai case. The judgment is in favor of NMDC thus need not pay premium for mining lease renewal at its Donimalai mines. However, further details are expected to be out in out in a day or two.

Earlier, Honorable Karnataka High court had announced 10th July for final Judgment which was reserved with the court since Feb 26th, 2019.

Before this, there had been a series of hearings heard by the court on Jan 10, 23, 28 and Feb 11, 14, 16, and 26 Feb'19.

Iron ore operations are on hold at NMDC's Donimalai mine, which was renewed lease on 3rd Nov'18 for the next 20 years. But the State Govt. put the additional condition to pay 80% premium on iron ore sale value from Donimalai to the Karnataka State Govt. NMDC was in negotiation with the Govt of Karnataka over its decision to impose an 80% premium on iron ore sales from Donimalai. As the company's earlier license did not include the premium.

NMDC Donimalai has EC limit of 7 MnT p.a. and produces around 6-6.5 MnT iron ore annually.