NMDC halts iron ore production

Hyderabad: Barring Kumaraswamy Mines in Karnataka, production of iron ore by NMDC came to a standstill as the state-owned company halted production at Bailadilla Range in Dantewada in Chhattisgarh also due to protest by tribals.

The miner is losing 70,000 tonnes of iron ore production from Chhattisgarh and already losing 0.5 million tonnes per month from Donimalai mines in Karnataka since November last year, official sources said.

Earlier, NMDC suspended iron ore-mining from its Donimalai mine following the state governments decision to impose 80 per cent premium on the ore sales from that mine in November, 2018.

Lately, the miner suspended production at Bailadilla Complex consisting of Bacheli and Kirandul mining blocks in Chhattisgarh following the agitation by tribal groups against the iron ore mining on hills in the Deposit no.13, official sources said.

"There is a production loss of about 70,000 tonnes of iron ore production per day due to tribal unrest at Bailadilla Range in Dantewada in Chhattisgarh. The mining was suspended in Bacheli mines since June 11 while it was stopped at Kirandul mines from June 7," the sources said.

Thousands of tribals, under the banner of the Sanyukt Panchayat Samiti, have resorted to protest against iron ore mining on hills in the deposit no. 13 since June 7. The mining in the entire Bailadila Iron Ore Complex consisting of Bacheli and Kirandul mining blocks was completely stalled. There is a loss of production of 70,000 tonnes on an average per day from Chhattisgarh, sources told PTI.

Deposit-13 is being developed by a joint venture company called NCL, formed by NMDC and the Chhattisgarh Mineral Development Corporation. A contract for excavation and mine development was awarded to Adani Enterprises Limited last year when the BJP was in power in the state.

Adani was awarded the contract only for excavation and mine development. The work was awarded to Adani by inviting open tenders through transparent e-tendering portal of MSTC, a state-owned company, NMDC had earlier clarified. The Chhattisgarh government on Tuesday ordered a halt to all works related to proposed iron mining at Deposit-13.