Public sector miner NMDC’s plan to enhance production of iron ore from Kumaraswamy mines in Karnataka from existing 7 million tonnes per annum to 10 MTPA for 2020-21 and 2021-22 has been approved by the Indian Bureau of Mines (IBM), Union Ministry of Mines.
The Regional Controller of Mines, Indian Bureau of Mines, Bengaluru, issued a notification in this regard, a release from the mining major said said on Wednesday.
In iron ore mining for over six decades now, the NMDC operates three iron-ore complexes in the country producing about 33 MTPA. Two are in Dantewada district of Chhattisgarh and one in Ballari district of Karnataka. Chairman-cum-Managing Director N. Baijendra Kumar said, “This will not only enhance the production of NMDC but also cater to the likely shortage of iron ore supply in the country post March 2020”.
The plan approval permission comes a day after NMDC announced that the Chhattisgarh government had extended four mining leases of the company.
The lease of the four mines was due for extension in March 2020. The Chhattisgarh Mineral Resources Department extended the four mining leases in Bailadila by 20 years up to September 2035, NMDC said on Tuesday. Of the company’s total 33 MTPA production, Chhattisgarh’s two complexes in Bacheli and Kirandul under Bailadila projects contributed about 24 MTPA in 2018-19.
The company had said it initiated the exercise for renewal of leases of the Bailadila projects well in advance with the Chhattisgarh government. Of the five mines in Bailadila sector, the lease of four mines with an installed capacity of over 29 MTPA has been extended and one mining lease had already been extended in 2017.
Mr. Kumar said “we are grateful to the government of Chhattisgarh, especially Chief Minister Bhupesh Baghel and top officials, for the support to NMDC in granting extension of lease (for the four mines) for another 20 years.”
