Mining entities in Karnataka expect iron ore prices to drop further

The company is now waiting for state clearances to resume operation

Mining entities in Karnataka are expecting iron ore prices to fall as supply from NMDC's Donimalai mines is likely to restart. Also, lesser offtake due to a decline in demand for the steel sector.  

To ensure seamless renewal of mining leases allocated to the government companies, the Union government recently amended the Minerals (Mining) by Government Companies Rules, 2015. A major beneficiary would be NMDC, which got into a legal battle with the Karnataka government over Donimalai, after it was asked to pay a premium equivalent to 80 per cent on what was extracted from there for lease renewal. Instead, NMDC