India's mining ministry tribunal issued a stay order on the Karnataka state government's decision to revoke the mining lease extension of National Mineral Development Corp. Ltd., or NMDC, for the Donimalai iron ore mine, The Hindu reported Aug. 22, citing a company statement.
This comes after NMDC filed an appeal to Karnataka's order, which stemmed from the company's refusal to pay an increased 80% sales premium, a condition Karnataka set for the grant of a 20-year lease extension until Nov. 3, 2038.
The state government, which plans to auction the mine, will not be allowed to take further action until the next hearing date, the report said.
NMDC restarted operations at Donimalai in mid-July following an order from the High Court of Karnataka.
