Mining resumes at state-owned NMDC's Donimalai mine in Karnataka

State-owned NMDC on Thursday announced resuming mining operations at its Donimalai iron ore mine in Karnataka.

The operations have been resumed after receiving permission from the state government, NMDC said in a BSE filing.

In 2018, NMDC had suspended iron ore mining at the mine following a decision of the state government to impose 80 per cent premium on the iron ore sales from the mine.

"After obtaining the lease extension of Donimalai iron ore mine (ML-2396) for 20 years w.e.f (with effect from) March 11, 2018, from the Government of Karnataka and completing the associated statutory requirements, (it) was restarted on February 18, 2021, forenoon," the filing said.

NMDC, under the Ministry of Steel, is the country's largest iron ore miner.

The company, which has been in the business of mining iron ore for over six decades, operates three iron ore complexes in the country.

While one is located at Donimalai in Karnataka, two are in the Dantewada district of Chhattisgarh, contributing 70 per cent to the company's total output.

The capacity of Donimalai mine is 7 million tonnes per annum (MTPA). The mine has reserves of about 90-100 million tonne (MT) which may last for the next 15-20 years.