Mining major NMDC reported iron ore production for August declined almost 10% year on year and sales by more than 11%.
Production of the key raw material for steel stood at 3.07 million tonne compared to 3.41 MT in the year earlier period, while sales totalled 3.14 MT (3.54 MT), the State-owned company said in a filing on the provisional numbers for August.
For the five months ended August, iron ore output totalled 14.43 MT (16.56 MT) and sales 16.27 MT (17.43 MT). On Monday, the company’s shares closed 2.85% lower at ₹216.40 apiece on the BSE.
₹1,620.5 crore penalty
Meanwhile, the District Administration of Dantewada, Chhattisgarh, has issued a showcause notice proposing to levy penalty and compensation of ₹1,620.5 crore on NMDC for alleged transport of iron ore without Railway Transit Pass (RTP) in contravention of various provisions of different mining laws.
The “demand of penalty and compensation solely and blindly without considering the facts and circumstances in the present case is completely inappropriate,” NMDC said in a release it shared with the stock exchange. The company will submit a “suitable reply to District Collector, Dantewada in this regard,” it said.
The company said it has been operating with valid mining lease, approved mining plan, CTO, CTE, environment clearances and forest clearances from the Union Ministry of Environment Forest and Climate Change. Chhattisgarh government verifies records every six months at the time of royalty assessment and not a single objection has been raised so far by the State government.
“Technically, the finalisation of iron ore grade takes time, which causes a delay in the generation of RTP by 2-3 days. However, this doesn’t make any loss to State exchequer,” NMDC said.
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