Resumption of mining operations at the Donimalai mine will improve iron ore supply in the country and help to ease prices of the key steel making raw material, experts say.

Mining at NMDC’s 7-million-tonne-per-annum (mtpa) Donimalai mine in Karnataka resumed from Thursday.

After remaining closed for over two years, the country’s largest iron ore miner was able to resume operations following the necessary permission and clearances from the Karnataka government.

Arnab Hazra, deputy secretary-general of the Indian Steel Association (ISA), the country’s apex body that represents the interest of domestic steel industry, said Donimalai is an important mine in the southern region. It will help the mills in southern India with smooth supply of raw material.

Anil Kumar Chaudhary, former CMD of SAIL, said, “It has been possible by the efforts taken by the steel ministry to resolve the issue.”

Resumption of mine will also help enhance NMDC in meeting its production targets for the current fiscal.

“This resumption of mining (at Donimalai) will increase supply of iron ore for steel making. Increased supply will lead to easing of prices of the raw material,” R. K. Sharma, secretary-general of miners’ body, the Federation of Indian Mineral Industries (FIMI), told PTI.

Iron ore is a key raw material used to produce steel, besides coking coal. To produce every 1 million tonne (mt) of steel, almost double the amount of iron ore is required.

NMDC former chairman and managing director N. Baijendra Kumar said another 7mt of iron ore will be back into the supply chain.