NMDC freeze on Donimalai mining: Karnataka iron ore prices to rise 10-15%

JSW Steel says it has made arrangements to source iron ore from outside Karnakata to ensure uninterrupted supply for its steel plant

Public sector mining major NMDC's suspension of iron ore mining at Donimalai, Karnataka could result in an increase of 10-15 per cent in iron ore prices, say industry sources. Current prices of the mineral in Karnataka are Rs 1,500-Rs 2,500 per tonne, depending on grade. NMDC's decision came after the Karnataka government imposed 80 per cent premium on iron ore sales from the mine.

Meanwhile, JSW Steel said it has made alternate arrangements to source iron ore from outside Karnakata to ensure an uninterrupted supply for its steel plant.