The Central Indian state of Chhattisgarh has suspended all activities of the state-owned company NMDC for the construction of an iron ore mine with an annual capacity of 10 million tons for an indefinite period.
The District Administration has been requested to immediately cease all activities at Bailadila No.13, State Minister Bhupesh Bagel said, adding that any statements by local residents opposing the project will be investigated.
Over the weekend, NMDC spoke about the details of a project being developed as a joint venture with a state-owned company in Chhattisgarh. Over the past few days, indigenous tribes have protested against the project, claiming that the land allocated for it is on a sacred hill.
The project was approved during the tenure of the previous state government, appointed by the Indian People's Party - BJP. The Congressional Party won the state elections last year and criticized the negative environmental impact of mining and indigenous tribal discontent.
NMDC operates several mines in the Bailadila Ridge, some of which are still in the planning stages. But Bagel said that the lease of the field for the project from NMDC remains, and the fate of the project will be decided after consultations with the central government in Delhi.
NMDC, India's largest iron ore producer, is planning new iron ore mining projects to double production to 66-67 million tonnes per year over the next few years.
