The Chhattisgarh government has assured NMDC of renewing mining leases in Dantewada district for another 20 years. The development assumes significance as NMDC is the country's largest iron ore miner and unlike in Karnataka the company's operations will not be affected in Chhattisgarh and the company will be able to supply raw material to steel makers.
NMDC had suspended iron ore-mining from its Donimalai mine in Karnataka following the decision of the State government to impose 80 per cent premium on the iron ore sales from the mine.
NMDC is a state-controlled mineral producer of the Government of India. It is fully owned by the Government of India and is under administrative control of the Ministry of Steel.