NMDC Ltd. on Monday said there were no valid reasons for the Karnataka government to keep on hold the extension of the Donimalai mine lease.
The Donimalai mine, with a capacity of 7 million tonnes per annum, was mired in controversy over renewal, resulting in the cancellation of lease last year. This, subsequently, suspended production from the mine.
Hope to get an opportunity soon to thank #karnataka govt too on Donimalai. if CG gove can extend 29 MT leases under the same act and rules , there are no valid reasons4Karnataka to keep it on hold during the possible disruption times. @CMofKarnataka @ChhattisgarhCMO @nmdclimited https://t.co/wQ9YCGKZEW
January 13, 2020The Chhattisgarh government has extended leases of NMDC's four mines in the state to avoid interruptions in iron ore supply to the steel sector.
The state-owned firm had earlier said that said production from its Donimalai mine will resume soon, as discussions at the higher level were underway for extension of the mining lease.
The public sector mining major, which has been in the business of mining iron ore for over six decades, operates three iron-ore complexes in the country.
Also Read: Iron Ore Supply Disruption Looms For India's Steelmakers
On Monday, NMDC shares rose 1.82 percent to Rs 123.25 apiece on the NSE while the benchmark Sensex gained 0.59 percent to end the day at a record high of 12,329.55 points.
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