Date | Sept 21, 2016:
After a wait of almost four months, India may finally be able to auction its first diamond mine.
Four bidders have technically qualified for the Hatupur diamond block in the Panna district of Madhya Pradesh (MP) after the first failed attempt. InfraCircle could not ascertain the name of the bidders.
The first notice inviting tender (NIT) was issued by the MP government on 4 May. However, the mine auction process was cancelled as only two bidders qualified.
According to the tender provision, in the event of technically qualified bidders being less than three, no one is considered to be a qualified bidder and the e-auction process is cancelled.
The mineral resources department of MP on 30 July brought a fresh NIT for grant of composite license for the diamond block. A composite licence holder conducts the geophysical exploration of the area to find out the exact reserve of the mineral and starts mining later on.
“The technical bids of the bidders for limestone blocks and diamond block were opened on 3 September. A total of four bids were received for the Hatupur diamond mine and all of them have been technically qualified,” said a senior government official requesting anonymity.
The area of the Hatupur block is around 136 hectare, with the value of the reserve estimated to be Rs.106 crore. The kimberlite reserve (diamond mineral-bearing Itwa conglomerate) in the block is expected to be around 0.604 million tonnes with diamond reserves of 500 carats (a unit of mass for gemstones). The lifespan of the mine is around 25 years.
Another government official, who also did not want to be named, said training and mock-auctions for the selected technically qualified bidders on the e-auction platform will be conducted shortly.
The Mines and Minerals (Development and Regulation) Amendment Act, 2015, (MMDR) allows auction of mines bearing minerals excluding coal and lignite by states. However, only seven mines have been auctioned till date in Jharkhand, Odisha, Chhattisgarh and Andhra Pradesh under MMDR.
Queries emailed to the spokespersons of the ministry of mines and mineral resources department of the MP government on 20 September remained unanswered.
Experts remained sceptical about the bid prices.
“I doubt that aggressive pricing will take place for this deposit as chances of mineral are less in these kinds of sedimentary deposits. If in the nearby areas, small leases of diamond mine exists, then companies may find diamond in the said block as associated mineral,” said Harbans Singh, former director general of the Geological Survey of India.
India has diamond reserves in Andhra Pradesh, Chhattisgarh and MP. Currently, the Panna diamond mine in MP is the only diamond-producing mine in the country that is under operation. It is run by the state-owned NMDC Ltd.
(Source: http://www.vccircle.com/)
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