Date | Sept 26, 2016:
India’s largest iron ore producer National Mineral Development Corp. Ltd (NMDC), JSW Steel Ltd and Anil Agarwal-controlled Vedanta Ltd, among others, have technically qualified to take part in Karnataka’s iron ore mine auctions.
Others who have technically qualified include MSPL Ltd, Kalyani Steels Ltd, Kirloskar Ferrous Industries Ltd, BMM Ispat Ltd, state-owned Kudremukh Iron Ore Co. Ltd (KIOCL) and SLR Metaliks Ltd.
These 14 deposits have an estimated 127 million tonne (MT) of iron ore reserves. India’s iron ore production for financial year 2015-16 rose to an estimated 135 MT compared with 129 MT the previous year.
According to information available on the website of Karnataka government’s mines and geology department, the technical bids for 14 ‘C’ category iron ore mines were opened on 15 September. However, technically qualified bidders have been announced only for seven iron ore deposits, with the remaining seven blocks finding no takers.
These mines, referred to as category C mines, are primarily located in Bellary and Chitradurga districts.
The Supreme Court had cancelled the leases of 51 iron ore mines in the state in April 2013 wherein it found massive irregularities in terms of environment degradation. These mines were then classified as category C mines by the Supreme court-appointed Central Empowered Committee. Those with few irregularities have been classified as category A mines.
“It is informed that the training and mock auctions for the technically qualified bidders on e-auction platform by MSTC will he held on 26 September,” Karnataka government’s mines and geology department said in a 22 September notification.
MSTC Ltd, a central government undertaking which provides electronic platform for mineral auctions.
The Mines and Minerals (Development and Regulation) Amendment Act, 2015 (MMDR), which was notified in March 2015, allows states to auction mines bearing minerals excluding coal and lignite. However, mineral auctions have not picked up speed.
Queries emailed to the spokespersons of Karnataka government’s mines and geology department, NMDC, JSW Steel Ltd, Vedanta Ltd, MSPL Ltd, Kalyani Steels Ltd, Kirloskar Ferrous Industries Ltd, BMM Ispat Ltd, KIOCL and SLR Metaliks Ltd. on 25 September remained unanswered.
The state government had earlier postponed the auction of these iron ore deposits after potential bidders raised concerns regarding high stamp duty and registration tax.
Experts believe that big firms have evinced interest due to high iron ore grades in these mines.
“Initial results clearly show that companies have shown interest in bigger deposits, rather than smaller ones. These mines will be profitable as it has higher grades of ore. Also, smaller deposits will be taken up by smaller players in next tranche,” said Naresh Chandra Pant, professor at department of geology, University of Delhi.
India’s iron ore production during the first quarter this financial year went up 43% to 48.23 MT compared with 33.71 MT during the first quarter of the last financial year.
India, which accounts for about 4% of the global iron ore production, has recently seen a boost in output with the government taking a slew of measures, including waiver of export duties and pruning of railway freight charges.
(Source: http://www.vccircle.com/)