Distress in Karnataka, NMDC gets 'mining lease' breather in Chhattisgarh

Wary of Karnataka development, NMDC started the exercise to avoid any unfavourable precedence to be set that could jeopardise its lease renewals in other states

State-run National Mineral Development Corporation (NMDC) Limited heaved a sigh of relief as the Chhattisgarh government decided to renew the lease of four mines that were at stake following development in Karnataka.

The public sector mining behemoth, 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 in Karnataka’s Donimalai, two are in Dantewada district of Chhattisgarh — sharing major proportion of company’s total output. 

Of the NMDC’s 33-million tonnes per annum (MTPA) production, Chhattisgarh’s two complexes in Bacheli and Kirandul under Bailadila project contribute