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Kudremukh township developed primarily as an iron ore mining town where the government ran Kudremukh Iron Ore Company Ltd. (KIOCL). This public sector company operated for almost 30 years, but was closed in 2006 due to environmental issues.

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KIOCL Limited, formerly Kudremukh Iron Ore Company Limited is a Government of India enterprise with its head office and administrative activities in Bangalore. It has a pelletisation plant in Mangalore and had an iron ore mine in Kudremukh (Chikkamagaluru district).The Kudremukh mine, one of the largest iron ore mines in the world, was closed in 2006.

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