National Mineral Development Corp. Ltd. filed legal action against the southern Indian state of Karnataka to stop it from demanding a higher share of revenue from the sale of iron ore at a local mine, Reuters reported Dec. 17, citing Rajender Kataria, the state's mining secretary.
The state plans to auction the Donimalai mine after majority state-owned NMDC refused to pay additional charges on ore sales from the project, Kataria said.
Due to the dispute, NMDC suspended operations at Donimalai and did not respond to an email seeking comment on the matter, according to the report.
In November, Karnataka levied an 80% premium on sales from the mine when it renewed NMDC's license for Donimalai, which NMDC contested.
Until the court hearing on Jan. 10, 2019, the state government will not be able to make a formal decision, Kataria told Reuters.