Date | March 07, 2016:

Essar Steel has emerged as the successful bidder in the first e-auction of iron ore block in Odisha, officials said today.

Essar Steel India Ltd has bagged the Ghorhaburhani- Sagasahi iron ore block in Sundargarh district as it submitted the highest final price offer of 44.35 per cent to become the preferred bidder, Mines Director Deepak Mohanty said.

Mohanty said as per the price offer the company would have to give 44.35 per cent of its sale proceeds in addition to the royalty.

Apart from Essar Steel, companies like Tata Steel, JSPL, JSW Steel, Bhushan Steel Ltd, Bhushan Power & Steel Ltd and Rashtriya Ispat Nigam Ltd (RINL) had submitted technical bids for the purpose

The state Government had notified for e-auction of Ghorhaburhani-Sagasahi iron ore block in December last year and seven parties which had submitted technical bids had qualified, said the Mines Director.

He said e-auction was conducted on March 2.

Mohanty said letter of intent would be issued to the successful bidder on payment of first installment of the upfront payment.

Located in Koira sector in Sundargarh district, the iron ore block is endowed with an estimated reserves of more than 99 million tonnes (MT) and is at G2 exploration stage, official sources said adding it was reserved for an integrated steel plant as end use.

The mineral concession area of the block is spread over 139.16 hectares including 20.88 ha forest land, 110.69 ha of government land and the rest 7.58 ha private land, they added.

(Source: http://www.hellenicshippingnews.com/)