Karnataka govt cancels NMDC lease for Donimalai mine, opts for auction

The move also creates uncertainty for future mining renewal in Chhattisgarh, where most of the mines are due for renewal in March 2020

Karnataka government has decided to cancel the lease given to NMDC for the Donimalai iron ore mine and to put it under auction. This is contrary to the earlier expectation of the mine's resumption after the high court passed an order in favour of NMDC in July.  

The court had allowed public sector miner NMDC to resume operations at the Donimalai mine in July after eight months. NMDC had closed the mine after the then Congress/JDS-led government in the state had imposed an 80 per cent premium on the average selling price of iron ore sold from the mine.