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India's Chhattisgarh halts iron ore mining project

The central Indian state of Chhattisgarh has put to halt all activity regarding construction of state-controlled NMDC's 10mn t/yr iron ore mine for an indefinite period.

The district administration has been asked to immediately halt all activity at Bailadila deposit No.13, said the state's chief minister Bhupesh Baghel, adding that allegations by local residents on illegal cutting of trees and doubts about consent given for the project will be investigated.


NMDC had over the weekend shared details on the project it is developing as a joint venture with a Chhattisgarh government-owned company. There has been protest by indigenous tribes against the project over the past few days, with claims that the project land involves a sacred hill.

The project was approved during the tenure of the previous state government run by the BJP. The Congress Party won the state elections last year and has been critical of the impact of mining on environment and indigenous tribes. NMDC runs several mines in the Bailadila mountain range with a few in planning stages. But Baghel said the mining lease for the project will remain with NMDC and the fate of the project will be decided in consultation with the central government in Delhi.

NMDC, India's largest iron ore producer, is looking to new iron ore projects to double its output to 66mn-67mn t/yr over the next few years.