India: Karnataka High Court Adjourns Hearing on NMDC Donimalai Mines Issue

According to the sources report to SteelMint, Karnataka High Court has postponed the hearing on NMDC Donimalai lease renewal pending the decision on the representation by the Karnataka Govt.

As per the sources, High Court has rescheduled its hearing for the matter on Jan 28th, 2019 as advocate general sought time to furnish Para-wise reply.

This is the second time Court has postponed its hearing, as it was scheduled on Jan 22nd, 2019 but due to holiday observed by Karnataka Govt. for the reverence of Swamiji sad demise, it was heard on Jan 23rd '19.

Last month, NMDC (National Mineral Development Corporation) - India's largest iron ore mine had approached the Karnataka High Court for an urgent hearing on NMDC Donimalai lease renewal issue.

Iron ore operations are still 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's iron ore sales decline sharply following Donimalai issue -: Amid suspension in iron ore mining activities in NMDC Donimalai, total sales volumes have come down drastically. As per company reports, NMDC's total iron ore sales from Karnataka was recorded at 0.67 MnT in Dec'18 against 0.69 MnT in the previous month.

The sales from NMDC Karnataka mines for CY18 recorded at 9.48 MnT, down 25% as against 12.62 MnT in CY17.

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