Resumption of mining operations at the Donimalai mine will improve iron ore supply in the country and help ease prices of the key steelmaking raw material, experts say.
Mining at NMDC’s 7-million tonnes per annum (MTPA) Donimalai mine in Karnataka resumed recently.
After remaining closed for over two years, the country’s largest iron ore mining company was able to resume operations following the necessary permission and clearances from the Karnataka government.
Arnab Hazra, deputy secretary-general of the Indian Steel Association (ISA), the country’s apex body that represents the interest of the domestic steel industry, said that Donimalai is an important mine in the southern region. It will help the mills in Southern India with a smooth supply of raw material.
Anil Kumar Chaudhary, former CMD of the country’s largest steelmaker SAIL, said, “It has been possible by the efforts taken by the steel ministry to resolve the issue.”
The resumption of mine will also help enhance NMDC in meeting its production targets.
“This resumption of mining (at Donimalai) will increase the supply of iron ore for steel making. Increased supply will lead to easing of prices of the raw material,” R K Sharma, secretary general of miners’ body Federation of Indian Mineral Industries (FIMI), told PTI.
Iron ore is a key raw material used for producing steel besides coking coal.
To produce every 1 million tonnes (MT) of steel, almost double the amount of iron ore is required.
NMDC former chairman and managing director (CMD) N Baijendra Kumar termed the development as “positive” for the domestic steel industry.
Another 7 MT of iron ore will be back into the supply chain, he said, adding that NMDC contributes about 18-20 per cent to India’s total iron ore requirement annual.