Karnataka govt to resume iron ore mining at Donimalai after 2 years

The Karnataka government on Tuesday

decided to resume iron ore mining at Donimalai in Bellari district, which had been stopped since 2018, and said it expected to earn revenue of Rs 647 crore a year from it.

This was decided at a cabinet meeting here.

Donimalai is rich in iron ore and was in the custody of state-owned NMDC for 50 years when its lease period ended in 2018, sources in the government privy to the issue said.

Since then the renewal did not happen as Karnataka wanted a premium of 80 per cent, which NMDC did not agree to, the sources said, adding that the state was losing GST, royalty, premium, economic activities around Donimalai and employment opportunities to the people working there.

"We have resolved that the impediment pertaining to NMDC mine lease is removed. Consent has been given to start mining at Donimalai in Sandur Taluk," law and parliamentary affairs minister J C Madhuswamy said at a media briefing after the cabinet meeting.

The state had been losing revenue ever since the mining was stopped, he said, and recalled that Chief Minister B S Yediyurappa and Union Minister for Coal and Mines Pralhad Joshi had held a meeting last month and resolved to sort out the matter.

"The Karnataka government expects to earn a revenue of Rs 647 crore a year from the mine," he said.

Among other cabinet decisions taken were to demolish Karnataka Bhavan-1 in New Delhi and construct a new building.

The Chief Minister would perform the groundbreaking ceremony on September 18, Madhuswamy said.

Allowing electricity supply companies to obtain Rs 5,575 crore as long-term loans, grant of 87.31 acres in Belagavi district for Rani Chennamma University and a plan to install LED bulbs in Mysore at an estimated cost of 109.9 crore were some of the other decisions taken.

If successful, then LED streetlights will be used in urban areas of the state.