Hyderabad: The Centre's Mines Tribunal has kept in abeyance the cancellation of the mining lease of Donimalai iron ore mine by the Karnataka Government extended to the state owned NMDC Limited.

The Karnataka government had earlier withdrawn the extension of the mining lease granted to the mine in November 2018 for a 20 year period.

Challenging the state governments decision, the PSU moved the Mines Tribunal, which heard the petition on August 21 and stayed the Order.

"The said Stay Order would prohibit the Government of Karnataka to take any further action regarding mining lease or initiate auction process of Donimalai mine," the National Mineral Development Corporation said in a statement last night.

NMDC was earlier in legal battle with the Karnataka government over the issue of imposition of 80 per cent premium on the sale price of the iron ore extracted from Donimalai Mines.

However the Karnataka High Court last month set aside the government's move. (PTI)

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