The Karnataka government on Tuesday decided to resume iron ore mining at Donimalai in Bellari district, which had been stopped since 2018.
It expected to earn revenue of Rs 647 crore a year from it.
Donimalai is rich in iron ore and was in the custody of state-owned NMDC for 50 years when its lease period ended in 2018.
Since then the renewal did not happen as Karnataka wanted a premium of 80 per cent, which NMDC did not agree to.
We have resolved that the impediment pertaining to NMDC mine lease is removed.