India: NMDC Requests Karnataka Govt to Withdraw its Letter on Donimalai Case

NMDC has requested the Government of Karnataka to withdraw its letter stating withdrawal of NMDC Donimalai lease renewal dated 17th Aug 2019 or keep it suspended.

The Company has filed revision application against the State Government of Karnataka's order with the Ministry of Mines, Government of India. The hearing has been fixed on tomorrow dated 21.08.2019.

Earlier today in an order issued by GoK (Govt. of Karnataka), has decided to cancel the lease renewal order of NMDC's Donimalai mines in Karnataka.

The order also states that in the further course of action, in this regard bid documents to be prepared for auction process and necessary technical committee constituted shall be placed before the state Empowered Committee for obtaining post-facto approval of the govt. to conduct an auction sale of the expired mine lease block which was held previously by NMDC.

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