Chhattisgarh extends NMDC’s 4 mining leases

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Published: November 20, 2019 4:10:06 AM

The extension of the leases is crucial for NMDC’s survival as Donimalai complex is still not operational since last year owing to a dispute over payment of premium with the state government, even with the intervention of the mines tribunal and the Centre.

Chhattisgarh, NMDC, economy news, Bailadila sector, MTPA, NMDC share, NMDC limitedThe assurance came in a recent meeting between the state chief minister Bhupesh Baghel and the company chairman and managing director N Baijendra Kumar.

In a relief to the state-run NMDC, the Chhattisgarh government has assured the iron ore miner of renewal of its four leases post their expiry in March next year. NMDC operates five iron ore mines in the state that have a total of 29 million tonne (MT) installed capacity. NMDC has already received an extension for the fifth one.

In the Bailadila sector of Chhattisgarh, NMDC runs two complexes — Bacheli and Kirandul. These two complexes had contributed 24 MT to NMDC’s overall 29 MT production in the last fiscal. The other complex, Donimalai, located in Karnataka has 14 MT installed capacity and it contributed 7 MT to the production last fiscal.

The extension of the leases is crucial for NMDC’s survival as Donimalai complex is still not operational since last year owing to a dispute over payment of premium with the state government, even with the intervention of the mines tribunal and the Centre.

The assurance came in a recent meeting between the state chief minister Bhupesh Baghel and the company chairman and managing director N Baijendra Kumar.

“We are thankful to the chief minister for giving us the assurance. Now, the process for extension of the mining leases of Bailadila Sector will be initiated and this would help NMDC to proceed with its expansion plans for production enhancement and evacuation,” said a company official.

NMDC is also in the final stages of commissioning its 3 MTPA steel plant at Nagarnar in Chhattisgarh. The chief minister has also asked the company to commission the steel plant at the earliest.

He also announced that there will be joint venture for diamond — mineral prospecting operations by NMDC and CMDC in Saraipali tahsil of Mahasamund district.

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