Hyderabad, 4th December 2020: The long-pending issue of the Donimalai Iron ore mine (ML No.2396) of NMDC Ltd, which was suspended since November 2018, has finally concluded through the endeavor of the Government. The decision has not an only paved the way for operationalization of the mine but also is a timely decision taken in a situation when the steel companies are facing a shortage of supply of Iron ore.
Exercising the power conferred to GOI under section 31 of the MMDR Act, 1957, the Government of India reached at an agreement with Government of Karnataka and the Ministry of Steel to extend Donimalai Iron ore lease.
Donimalai Iron ore mine, which has a total concession area of 597.54 Ha and an estimated resource of 149 MT shall increase the annual Iron ore production in the country by 7 MTPA. Based on the existing high price of ore, it is expected that Donimalai Iron ore mine will contribute around INR 400 crore to the State Exchequer, during the ongoing financial year.
The operationalization of the mine would contribute a total of around INR 1100 crore to the State exchequer per annum. It will also make the nation a step closer towards the vision of the Government to achieve 300 MTPA crude steel capacity by 2030-31. The mine shall offer direct Employment to thousands of people (including the contract labors) and create indirect employment opportunities for lakhs of people.
The operationalization of the mine shall bring a sense of security for more than two dozen SMEs (with 100s of employees) near Donimalai area that were directly or indirectly dependent on NMDC for supply of raw material. Further, the Local community dependent on NMDC CSR activities will not be deprived of benefits, like Hospital, Free Transport, RO water facilities etc.