Timeline: How are Odisha Iron Ore Mines Auction Lined Up in 2020?

The Odisha government has called to start afresh the process of mineral block auctions on 06 Dec’19 and it is expected to restore sanity in the system of online bidding. Moreover, the revised tender rules are set to promote equal competition for all iron ore and manganese blocks on offer as opposed to frenetic bidding for a single coveted block.

The state government has also inserted some additional conditions in the tenders for the expiring merchant mine leases. A successful bidder, after obtaining all statutory clearances, needs to produce in the first two years at least 80% of what the mine actually produced in the preceding two years.

Here is the timeline for Odisha mine auctions –

Timeline of Odisha Mines Auction - 2020

Breakdown of 20 mining blocks notified for auctions

A. Iron ore mines reserved for captive use
Mine Present lessee Area
(in ha)
Resources
(in MnT)
Mine capacity
(in MnT/annum)
Thakurani Kaypee Enterprises 228.04 180 5.5
Gonua P K Ahluwalia 86.88 119.2 0.36
Narayanposi AMTC 349.25 190.6 – Iron Ore, 0.05- Manganese 6
Jaribahal Patnaik Minerals 106.53 8.15 0.9
Tanto, Roida-II K N Ram & Company 74.86 29.38 2.2

 

B. Blocks set aside for merchant miners
Mine Present lessee Area
(in ha)
Resources
(in MnT)
Nuagaon KJS Ahluwalia 767.28 792.93
Siljora-Kalimati ML Rungta 715.63 4.02- Mn, 0.72- Iron
Jiling Essel Mining 456.1 79.12
Jurudi Kalinga Mining 73.22 4.79
Mahulsukha AMTC 399.83 32.81- Iron, 0.77- Mn
Gorumahisani GS Mishra 349.5 18.4
Badampahar Lal Traders 129.61 6.16
Jajang Rungta Mines 666.15 58.5
Katasahi Rungta Mines 196.86 0.66 (Mn)
KanthorKoira Rungta Mines 73.65 0.06 (Mn)
Nadidihi BICCO 73.85 27.04
Nadidihi Feegrade 121.4 23.69- Iron, 0.05- Mn
Teherai BICCO 137.46 11.52- Iron, 0.07- Mn
Kolomong Rungta Mines 218.53 1.39- Iron, 3.73- Mn
Balda Serajuddin 335.59 210.17
Will India See a Major Iron Ore Disruption?

To learn how the mines auction 2020 unfolds, be a part of SteelMint Events’ 4th Indian Iron ore, Pellet and DRI Summit‘ which is scheduled on 2-3 March 2020, in Hotel LaLiT, New Delhi.

4th Indian Iron-Ore, Pellet and DRI Summit

23 Comments
  1. Pramod Jain

    Is there any first right to refusal for existing lease owner if he agrees to pay the premium equivalent to highest bidder?

  2. Sugat Nayak

    No, as per my understanding of the matter, first right to refusal is only for captive miners, whose leases are expiring in 2030.

  3. AK Panda

    @ Pramod, It is only for captive miners whose leases are expiring in 2030. Although, I heard Misrilal Jain has filed a petition in Odisha high court against chrome ore mines which was auctioned in September 2019 and won by Tata Steel.

  4. SK Mittal

    Odisha officials are likely to meet central govt officials in first week of Jan. They are confident of getting blanket extension on environmental clearances for 2 yrs

  5. Ajay Khanna

    Any idea, if existing miners are allowed to sell their ore lying at pit heard in another six months (till Sep 2020) after the mines auctions conclude?

  6. Vamshi Challapalli

    In a recent meeting called by Odisha government on mines auction along with MSTC and SBI caps, emphasis was on achieving at-least 80% of production on rated mining capacity as per environmental clearances

  7. Satyendra Sinha

    SAIL is allowed to sell 25% of their last years production in merchant market. Does this rule also applicable to private captive miners (existing and new)?

  8. Bijoy Banerjee

    SAIL has extended sale of 1 million tonne iron ore fines from Jharkhand and Odisha on pending regulatory clearances from the state government

  9. Deepak Mudgal

    NMDC’s Kumaraswamy mines get an EC extension from 7 MnT to 10 MnT for 2 yrs. This is to offset disruption post mining auction

  10. Amit Khare

    Deepak Ji @ any update on NMDC Donimalai ? When is it expected to start production?

  11. Narendra Singh

    Most of the Odisha miners have exhausted their EC limits for FY20. Dispatches have increased over 30% in Nov as buyers fear some disruption post mining auction in March 2020.

  12. Rajat Gupta

    Rungta, Essel, KJS, Kaypee have raised iron ore prices by Rs 200-400/t on aggressive bookings made in last few weeks. Buyers do not want to take position at higher prices as they are concerned on deliveries before March 2020.

  13. Chitranjan Das

    Indian pellet plants are having a good time 🙂

  14. Praveen Kumar

    Will India cut down its pellet exports to feed domestic mills?

  15. Nishank Khemkha

    NMDC got extension for its 4 mines in Chattisgrah for 20 years, any impact on supplies?

  16. Abhishek Sanghvi

    Rungta has an EC limit of around ~35 MnT but their production is ~25 MnT . What was stopping them to utilise the entire EC. Can they bring this 10 MnT post mining auction ?

  17. Neeraj Gupta

    @Abhishek, need to check if the unused EC is for mines that are coming for auction or not coming for auction

  18. Dinesh Goyal

    Neeraj Ji , I checked with some officials, two mines which were under utilised are coming for auction. Do not expect additional supplies from Rungta.

  19. Dhawal Shah

    Buy Tata Steel , Godawari Power , Prakash Insustries , NMDC. Good return expected

  20. Sanjay Bhattacharya

    6 mines in Karnataka are coming for auction in March 2020 . Anyone has the list or know what is their annual production?

  21. K.Balaram

    @Sanjay, I think these 6 mines produce about 2 million tonnes per annum

  22. Chintan Shah

    Nmdc long term supply agreement with Japanese and Korea mills are expiring in March 2021. Is there any possibility they can discontinue in between?

  23. Dhawal Mehta

    JP Morgan report says iron ore prices may increase by another 15-20%

Leave a Comment