SteelMint Events

Tag: Iron Ore mines

  • Status of Indian Iron Ore Mines Post Auctions

    Status of Indian Iron Ore Mines Post Auctions

    Odisha’s iron ore mining industry is undergoing a turnaround. On one side, the auctioned mining leases whose tenure lapsed on 31 Mar’20, have stopped production as per MMDR Amendment Act. While on the other side, despite the Centre extending the validity of all statutory approvals of the mines by two years, they are yet to recommence production as statutory clearances and paperwork got delayed in the wake of COVID-19 outbreak. As an outcome, the state’s iron ore production fell by 56% m-o-m in Apr’20.

    The key bidders are hopeful to start mining from Jul’20. Let’s get insights from industry stalwarts on the current scenario, estimated production impact and the way forward.

    Date & Time:

    July 2, Thursday at 4:00 PM (IST), 6:30 PM (Singapore time), 2:30 PM (Dubai time)

    Panellists:

    • Dr Umesh Chandra Jena, Joint Director of Mines, Govt. of Odisha, India
    • Mr Kapil Mantri, Head- Corporate Strategy & Business Development, JSPL, India
    • Advocate Anand Varma, Managing Partner, Apt Legal, India
    • Ms Nishtha Mukerjee, Head of Research, SteelMint, India


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    Key points of discussion:

    • Current scenario of Odisha’s iron ore mining industry
    • Operational mines as of now which are active in the merchant market
    • Status of MDPA execution and upfront payments
    • Effect on the transition of machinery & change of hands
    • Impact on production considering the effect of monsoons
    • Outlook on the resumption of activities of the auctioned leases
    • Will low-grade iron ore fines export volumes get impacted?
  • Mine Auction 2020: KJS Ahluwalia Nuagaon Iron Ore Mine Fetches Premium of 95.1%

    Mine Auction 2020: KJS Ahluwalia Nuagaon Iron Ore Mine Fetches Premium of 95.1%

    The much awaited Odisha mine auctions 2020 is well underway. State govt has started technical bidding for Nuagaon iron ore mine block on 29th Jan’20. As per sources, six companies namely – Rungta Sons Ltd, Arcelor Mittal India Pvt Ltd, JSW Steel Limited, Vedanta Ltd, Adani Enterprises Limited and TS Alloys Limited had qualified the technical round.

    The mine fetched the highest premium of 89.4% in the technical round, following which the govt started the 2nd round of auctions. Notably, the highest initial price offer amongst the technically qualified bidders was set as the floor price for the second round of auction. Witnessing an aggressive bidding, the mine fetched highest ‘final price offer’ of 95.1%.

    What does the premium of 95.1% mean? The ‘final price offer’ submitted is a percentage of value of mineral despatched for the mine block and is calculated as a product of mineral despatched in a month and sale price of the mineral (grade-wise and state-wise) as published by Indian Bureau of Mines for such month of despatch. It is to be noted that in accordance with the ‘final price offer’ shall be required to be paid monthly in addition to the payment of royalty or dead rent, as applicable.

    KJS Ahluwalia was the existing lessee of Nuagoan iron ore mine block. The mine has an EC limit of 5.62 MnT pa and has exploration done upto G2 level. The mine has a total geological resource of 792.93 MnT. Its average lumps percentage is 39.1% and fines percentage is 60.89%. Production from the mines was recorded at around 5.61 MnT in FY19 and 4.4 MnT in FY20 (till Nov’19). This mine is reserved for merchant use.

    How will mine auctions impact Indian iron ore demand-supply?

    View Report

    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.

  • Odisha to Notify Auctions of Nine Virgin Blocks in February

    Odisha to Notify Auctions of Nine Virgin Blocks in February

    The Odisha government will issue Notice Inviting Tenders (NITs) in respect of nine virgin or freehold mineral blocks tentatively towards the second week of February. The said blocks will be offered for electronic auctions after the successful completion of auction formalities of 20 merchant mine blocks.

    “We will initiate the process of auctioning the nine virgin mineral blocks sometime in February. Their auctions will be taken up after we are done with the online auction of 20 merchant mine leases”, Deepak Mohanty, director of mines with the Odisha government said here on the sidelines of a workshop on Gemstones in Odisha – Exploration and Exploitation Strategy.

    Which are these blocks?

    The virgin blocks in question include seven iron ore deposits; one exclusive manganese block and one block with co-existence of iron ore and manganese. The seven iron ore blocks listed are Purheibahal, Chandiposhi, Rengalaberha North East, Gandhalpada, Netrabandha Pahar (West), Dholtapahar and Jhumka Pathriposhi. Unchabali has mixed iron ore and manganese reserves while Kalimati is the sole manganese block.

    The delay in auctions

    Auctions of virgin mineral blocks are being delayed as the state government first prioritised the offer of merchant mines whose lease validity ceases by March 31, 2020. January 3 is the deadline for submission of technical and financial bids for the 20 blocks. The blocks are expected to witness frenzied bidding as they being operative mines are explored and are equipped with the attendant infrastructure to ensure smooth extraction and dispatch of minerals.

    The conduct of ascending forward electronic auctions and submission of final price offer on the auction platform will be done between January 31 and February 21, 2020 while the Letter of Intent (LoI) is to be issued from February 10 to February 29, 2020.

    Additional conditions for expiring merchant mine leases

    The state government has 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 per cent of what the mine actually produced in the preceding two years. This clause will be inserted in the Mine Development and Production Agreement (MDPA). Failure to achieve this production benchmark will debar the successful bidder from participating in future auctions for three years. And, in case of blocks reserved for end use, the consumption should be limited to the plant of the bidder located within the country.

    To learn about the latest advancements in the mines auction 2020, 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.