The Government of India has signed an agreement with the Government of Karnataka and the Ministry of Steel to extend Donimalai Iron ore lease to NMDC. The mine is extended for 20 years with effect from November 2018. NMDC said that “The decision has not only paved way for operationalisation of the mine but is also a timely decision taken in a situation when the steel companies are facing a shortage of supply of iron ore.”
NMDC has been operating the mine, but operations were suspended since November 2018. Donimalai iron ore mine, which has a total concession area of 597.54 hectares and estimated resources of 149 million tonnes, will increase the annual iron ore production by 7 million tonnes per annum.