K'taka govt holding extension of Donimalai mine lease unreasonable: NMDC

The Donimalai mine was mired in controversy over renewal resulting in the cancellation of lease last year

State-owned mining major NMDC on Monday said there were no valid reasons for the Karnataka government to keep on hold the extension of Donimalai mine lease.

The Donimalai mine, with a capacity of seven million tonnes per annum (MTPA), was mired in controversy over renewal resulting in the cancellation of lease last year, which subsequently suspended the production from the mine.

"Hope to get an opportunity soon to thank #karnataka govt too on Donimalai. If CG gove (Chhattisgarh government) can extend 29 MT (million tonnes) 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," NMDC Chairman-Cum-Managing Director N Baijendra Kumar said in a tweet.

The Chhattisgarh government had earlier extended leases of state-owned NMDC's four mines of Bailadila deposit in the state to avoid interruptions in iron ore supply to the steel sector.

"Thanks to #Chhattisgarh Govt. Thank you @bhupeshbaghel. @nmdclimited registered lease deed extension of Deposits 5,10,14,14NMZ of #Bailadila iron ore mines... for next 20 years. 29MT production capacity renewed.Uninterrupted ore supply ensured to our clients. @SteelMinIndia," he further tweeted.

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.