Bengaluru, Aug 22 (IANS): The Mines Tribunal has stayed the Karanatka government's order to withdraw the extension of mining lease of Donimalai Iron Ore Mine. The order will prohibit the state government to take any further action regarding mining lease or initiate auction process of Donimalai mine.

The Karnataka government's decision was challenged by the National Minerals Development Corporation (NMDC) Ltd. which was given the lease for 20 years from November 4, 2018 to November 3, 2038.

Earlier, the condition to levy premium equivalent to 80 per cent of average sale price while extending the period of lease was set aside by Karnataka High ZCourt on July 12 this year. In its order on August 21, the tribunal impugned the government order and any consequent action.

"The said stay order would prohibit Government of Karnataka to take any further action regarding mining lease or initiate auction process of Donimalai mine," an NMDC statement said.