NMDC positive about Donimalai mine lease extension

New Delhi: State-owned NMDC on Friday said production from its Donimalai mine in Karnataka will resume soon as discussions at the higher level were underway for extension of the mining 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.

On likely extension of Donimalai mine lease, NMDC Director (Production) P K Satpathy said, "High-level discussions are going on. ...we are hopeful that in the coming future...one month, 15 days it can happen any time.

All groundwork has been done and logically we are on the right track. So, there is no point for State government to withhold our extension of lease."

Satpathy was speaking on the sidelines of Mining Summit organised by the CII. Stating that the production from mine would be resumed soon, he said that "discussions (on extension of lease of the block) were going on at the higher level".

"We have been under severe threat because of this lease renewal. In government companies only there is a provision of lease extension," he said.