SteelMint Events

Category: Blog

  • Goa iron ore mining leases to be put for auction by Oct : Govt

    Goa iron ore mining leases to be put for auction by Oct : Govt

    After the closure of mining activities since 2018, Goan iron ore industry now see some signs of respite as the state’s chief minister Pramod Sawant has said that the auctioning of iron ore mining leases would begin within the next two to three months. The state department of mining and geology had been asked to expedite formalities so that the process could begin as soon as feasible.

    What is the story all about?

    The Goa government in early-May sent notices to 88 lessees whose renewals had been set aside by the Supreme Court (SC) in February 2018. By then (early-May), the mining act had been amended to mandate auction, making it difficult for the state government to renew these leases. After years of deliberation and botched attempts at reinstating rights to the old lessees, the state has decided to auction these areas.

    The mining in Goa came to a halt in early 2018 when the Supreme Court cancelled 88 leases and outlawed the extraction of new ore.

    Previously, the state government established Mineral Exploration Corporation Limited to investigate the possibility of auctioning of mining leases.

    The state government has recently started the process of taking over these leases by serving notices to vacate.

    What next ?

    The State Bank of India has been selected as a consultant to oversee the entire mining lease auction process in Goa. It will require another two to three months to reach to the auction stage.

    Why is mining resumption in Goa important ?

    Notably, Goa accounted for a share of 4% in India’s iron ore production in CY17 and volumes amounted to 8.6 mnt. Also, the state has been a hub in exporting iron ore to China, primarily that of low-grade ores. The key exporters from the state include Vedanta, Fomento Resources, VM Salgaonkar etc.

    Join us in our event, to know more about when can we expect iron ore mining to resume in Goa?

    SteelMint Events will be hosting the 5th Indian Iron Ore & Pellet Summit on 3-4 August, 2022 at The Lalit, New Delhi. The conference will discuss key issues being faced by the iron ore and pellets industry in India. The focus will be on market dynamics, policy-related changes, growth challenges and enablers, sustainability and decarbonisation goals, the way forward and many more talk points.

  • New PCT Terminal by Q1’2021 to ease congestion at Chittagong port – Md Zafar Alam, CPA

    New PCT Terminal by Q1’2021 to ease congestion at Chittagong port – Md Zafar Alam, CPA

    Md. Zafar Alam, Jt Secretary, Govt of Bangladesh, is Member (Admin and Planning) at the Chittagong Port Authority.

    In a recent interview to SteelMint, Mr Alam revealed about the expansion plans of Chittagong port to ease imports by steel and various other industries, development of new ports to share burden and role of private players in the port development sector in the coming years.

    Q1 How well equipped has Chittagong port emerged, to handle imports via containers and Bulk cargo, given that numerous steelmakers in the country import scrap through containers?

    A1 Chittagong port started its journey as cargo port. In the mid-seventies of last century, it started to transform into a container port by converting some cargo berths for container operation. Now at Chittagong port Authority (CPA) there are only six berths for cargo operation. Alternatively, CPA used its outer anchorage to discharge cargo through lighterage vessels. These lighter vessels move throughout the country by inland waterways.

    Q2 What are the steps being taken by authorities to ease out the prevailing port congestion at Chittagong, considering its importance for raw material imports for steel mills?

    A2 Chittagong port has taken some projects to develop its cargo and container handling facilities. Among them are, 3 new jetties at Patanga Container Terminal (PCT), 1.2 km long cargo Terminal in Bay Terminal area.
    Moreover, after the commissioning of PCT in the first quarter of 2021, it will spare at least two GCB berths for cargo handling, increasing capacity of Chittagong Port after adding bay terminal. Government has also taken a project to develop cargo and container Port at Matabari and Payra, and these two ports will support the industries dependent on imported raw materials.

    Q3 Is it true that Rice and other food related commodities are given preference for unloading at port, keeping scrap importers waiting longer and paying higher demurrage charges?

    A3 In fact in the existing 6 cargo berths of GCB follows a priority rule and that runs as follows:

    a) For food item- 1 berth
    b) Cement – 1 berth
    c) GI cargo/ Steel Scrap – 2 berth.
    d) RoRo vessel- 1 berth
    e) National flag carrier- 1 berth

    Moreover CPA allocated 3 lighter jetties to the steel mills for handling steel scrap from lighter vessels. CPA is developing at least 10 more lighter jetties to support the raw material import dependent industries.

    Q4 Will the new port, Payra port be utilized for scrap and raw material imports, or is it earmarked for other commodities?

    A4 Yes, Payra port will develop for both container as well as cargo handling purposes.

    Q5 Can you put some light on the govt’s plan of action to expand the Chittagong port’s capacities as well as newer port developments in the coming time? 

    A5 In 2019 Chittagong port handled around 100 million metric tons of cargo and 3.1 million TEUs of containers. Economic development of Bangladesh requires the development of ports. And government has taken initiative to develop Payra port in the middle region of Bangladesh and Matabari port in the south east region of Bangladesh. These ports along with Bay terminal and existing Chittagong Port will support the growing demand of the industries in Bangladesh. These expansion projects include:

    a) Construction of Patanga Container Terminal(PCT)
    b) Construction of Bay Terminal
    c) Expansion of yard facilities of Chittagong Port
    d) Construction of 10 more lighter jetties for the raw materials and cargo
    e) Newmooring Overflow yard; and
    f) introducing ICT based Port community System.

    I am very much optimistic with these development and expansion of Chittagong port could ease the movement of ships, containers and cargo including scrap raw material for the steel industry. Chattogram port has carried out a study about the possibility of setting up lighter jetties around sitakunda to support nearby steel industries.

    We are at the end of the implementation of the seventh five-year plan and we will enter into the eighth five-year plan in the next year, 2021. These will have provisions for private sector involvement in the port development. Private sector can come forward and establish port facilities for the smooth movement of the cargo and container.

    Mr Zafar Alam is one of the prominent speakers at SteelMint’s 3rd Steel and Raw materials conference, Chittagong on 23rd-24th March’ 20, where he will be addressing the concerns about the port congestion issues impacting raw material imports to Bangladesh and the correct solutions for the same.

  • Bangladesh to Add 1.5 MnT Steel Capacities in 2020

    Bangladesh to Add 1.5 MnT Steel Capacities in 2020

    Bangladesh’s steel industry is growing at a rapid pace on the back of increasing steel demand for the mega infrastructure projects lined up in the country in this decade. To meet the expeditious growth in demand, many large and medium steelmakers are expanding their steelmaking capacities by installing new melting furnaces. Approximately, over 10 induction furnaces of an (avg 25 T) capacities will get commissioned and operational in 2020 itself.

    Major steel mills in Chittagong include – BSRM, Abul Khair, GPH Ispat & KSRM. In Dhaka mills like Rahim Steel, Salam Steel etc expanding their melting capacities aggressively, while even smaller mills like RB Steel, HR Steel and many others are adding new furnaces.

    Bangladesh is expected to add around 1.5 MnT of steel production capacities in the next 12 months, thus leading to a sharp growth in its raw material import demand. Bangladesh’s total scrap imports (bulk + containers) are expected to cross 4.3 MnT by the end of CY’20 and are likely to breach 5 MnT mark by CY’21. Presently Bangladesh imports 3.7 MnT of ferrous scrap (bulk + container) annually, as of CY’19.

    To know more about the Bangladesh steel industry’s growth story, increasing scrap, DRI and HRC imports, changes in its ship-recycling industry and other latest news from the industry, download the Bangladesh Newsletter attached below:

    Bangladesh Newsletter

  • Ministry Invites Comment on Draft Rules, Proposes Existing Lessee to Vacate Area in 30 Days

    Ministry Invites Comment on Draft Rules, Proposes Existing Lessee to Vacate Area in 30 Days

    The Ministry of Mines has invited comments/suggestions on draft Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Amendment Rules, 2020 and draft Mineral (Auction) Amendment Rules, 2020. The Ministry has invited suggestions from the general public, Government of States and Union Territories, mining industry, stake holders, industry associations, and other persons and entities concerned. The last date for receipt of the comments / suggestions is 19th Feb’2020.

    The key highlights of the drafts are as follows:

    1. The State Government shall nominate a Secretary level officer in the State Government as the Nodal Officer for leases expiring vide sub sections 5 and 6 of section 8A of the Act. The nodal officer so nominated shall also be authorized to collect all the valid rights, approvals, clearances, licences and the like vesting hitherto with the previous lessee and shall be issue deemed vesting order in favour of the new lessee along-with the Letter of Intent. Nodal officer will facilitate the new lessee to obtain approvals required for mining operation through the single window system established by the State Government

    2. The validity of the vesting order shall be for a period of two years from the date of grant of Letter of Intent of new lease or till the date of getting all fresh approvals, clearances, licenses, permits, and the like, whichever is earlier.

    3. It shall be lawful for the new lessee to commence and continue mining operations on the land in which mining operations were hitherto being carried out by the previous lessee, after the execution of the lease deed for a period of two years as provided in the Act.

    4. The new lessee shall immediately, but not later than ninety days from the date of issue of the Letter of Intent, apply for all necessary rights, approvals, clearances, licenses and the like under the applicable statutes/rules/regulations afresh for obtaining the necessary clearances to enable further continuance of the mining operations beyond two years, as per the proviso to sub-section (2) of section 8B of the Act.

    5. No authority shall reject grant of any rights, approvals, clearances, licenses and the like to the new lessee on account of past violations or outstanding dues of the previous lessee. These can be agitated before appropriate forums separately without prejudice to any rightful legal claims of the parties.

    6. Previous lessee shall remove all material, machines, structures and the like that may hamper or act as impediments to the mining activities by the new lessee, as soon as possible, but not later than thirty days after the issue of a notice in this regard by the new lessee to the old lessee, failing which the new lessee shall be at freedom to remove such obstruction under intimation to the State Government at the cost and risk of the previous lessee.

    7. Notwithstanding anything contained in these rules, the mining lease shall be executed by the State Government within a period of fifteen days from the date of issue of letter of Intent to the new lessee to whom the vesting order has been issued under rule 9A(4) of Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules 2016, or commencement of these rules or the expiry of the lease period of the previous lessee, whichever is later. The holder of the Letter of Intent shall comply with all the requirements to execute the mining lease within this period, failing which, the Letter of Intent may be revoked and the performance security be forfeited by the State Government.

    Provided that, on receipt of an application from the holder of the Letter of Intent, the State Government, may extend the period for execution of the lease deed by a further period not exceeding fifteen days, on satisfaction that such delay is entirely for the reasons beyond the control of the holder of Letter of Intent.

    The Odisha government is conducting mineral auctions of leases which are due to expire in Mar’20. Nearly 86 companies have aggressively participated in the auctions. Till 14th Feb’20, govt has successfully auctioned 15 iron ore leases in which highest premium fetched was 154%.

    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.

  • JSW Steel Holds 21% Share of Merchant Iron Ore Supplies After it Won Jajang Mines

    JSW Steel Holds 21% Share of Merchant Iron Ore Supplies After it Won Jajang Mines

    After winning four iron ore mines so far in Odisha auctions 2020 (2 captive & 2 merchant), JSW Steel has occupied a share of 21% in Odisha’s merchant iron ore supplies. Other major merchant suppliers are – OMC, Serajuddin & Essel Mining.

    JSW Steel has won two mines so far which were reserved for merchant namely Nuagaon & Jajang having total EC limit of 22.1 MnT pa. Govt has emphasized 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.

    To get recent auction updates on mines auction 2020

    Download Newsletter

     

    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.