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

According to the sources report to SteelMint, Karnataka High Court has once again postponed the hearing on NMDC Donimalai lease renewal issue.

As per the sources, High Court has adjourned the matter till next date of Feb 25th, 2019.

There have been a series of hearings going on in the court on Jan 10, 23, 28 and Feb 11, 14, 2019.

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.