Karnataka govt says no to Donimalai iron ore mine auction

Karnataka govt says no to Donimalai iron ore mine auction

Karnataka govt says no to Donimalai iron ore mine auction.

This situation has arisen because of the centre's mines tribunal has suspended the cancellation of the mining lease of the block by the Karnataka government extended to NMDC Ltd.
 
"The government of Karnataka has identified one iron ore mine for electronic auction for grant of mining lease and accordingly NIT (Notice Inviting Tender) was issued dated August 20, 2019, on MSTC website for Donimalai Mine (earlier held by NMDC) ML No 2396," according to a notice by the state government.
 
"The schedule of the auction process for the said mine is hereby deferred until further notice," it added.
 
Earlier the state has withdrawn the mining lease given to NMDC for the mining between November 2018 for a 20-year period. The public sector has challenged this decision nad moved the petition to the tribunal. The tribunal heard the petition on August 21 and stayed the order. "The said Stay Order would prohibit the Government of Karnataka to take any further action regarding mining lease or initiate auction process of Donimalai mine," NMDC recently said in a statement.
 
However, earlier NMDC Ltd was in court procedures with the state over the issue of imposition of 80 per cent premium on the sale price of the iron ore extracted from the Donimalai mines. High Court of Karnataka last month set aside the governments move.



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