(FE)
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.
