The Karnataka government had put eight iron ore mines on an e-auction in September 2018. Out of which, five had qualified for final rounds and the remaining three mines were disqualified.They had less than three bidders hence not qualified for next round of bidding process. Each mine should have at least three bidders to qualify for the final auction.
However, as the sources report to SteelMint the recent auction rules have been amended. Now minimum two bidders are required instead of three bidders for the final round of bidding process (they are called technically qualified bidders).
According to reports, JSW Steel and Kirloskar ferrous Insustries have qualified for next round of bidding for M Channakesava Reddy mines, having a reserve of 3.18 MnT. Hothur Ispat has been qualified for mineral and mines traders Ltd having a total reserve of 9.22 MnT.
In April 2013, the Supreme Court had directed the state government to cancel 51 C-category leases, for involvement in illegal mining. And reallocate these to end-users through a transparent bidding mechanism.
What is MMDR act?
Mines and Minerals Development and Regulation Act (MMDR) 2015, all the non-coal mines have to be auctioned by the respective state governments by transparent manner through e-auction.On expiry of the lease, they will be put to auction instead of being renewed. All captive leases granted before the Act would however be extended up to 31st March 2030 or till the expiry of the lease or for a period of fifty years whichever is later.
Mines Auction in Karnataka
|Name of Mine Block||Area in Hectare||Reserves in MnT||Technically Qualified Bidders|
|Sri M Channakesava Reddy (M/s Sri Lakshmi Narasimha Mining Co), ML No 2566||7.57||3.179||JSW Steel Ltd., Kirloskar Ferrous Industries Limited|
|M/s Mineral Miners and Traders, ML No 2185 A||44.42||9.224||Hothur Ispat Pvt Ltd, JSW Steel Ltd|
|Sri H G Rangangouda, ML No 2148||60.66||63.33||MSPL Ltd|
|M/s Kanhaiyalal Dudheria, ML No 2563||30.09||9.26||MSPL Ltd|
|M/s Mysore Minerals Limited, ML No 995||32.89||9.708||JSW Steel Ltd..|
|M/s Nidhi Mining Company (Smt K M Parvathamma), ML No 2433||29.49||10.024||Minera Steel and Power Pvt Ltd|
|M/s Bharath Mines and Minerals, ML No 2245||24.47||7.577||Kirloskar Ferrous Industries Ltd|
Reserves in MnT
Source: Ministry of Mines
To get more insights on the Indian Iron Ore, participate in the 3rd Indian Iron ore and pellet Summit, 18-19th Feb 2019, Delhi NCR