By Our Correspondent
BHUBANESWAR: Vedanta Group’s ESL Steel Ltd wins the Nadidih Iron Ore Block (BICO) at a premium of 95.6% in Odisha. Vedanta Group’s ESL, Karnataka based Ramagad Minerals and Mining , Rungta Mines , AMNS ,Orissa Metaliks Bhushan Power and Sri Jagannath were in race for BICO(Nadidih) block, the second block offered for financial bidding out of the total 11 blocks while ESL Steel Ltd wins the Nadidih Iron Ore Block (BICO).
Rungta Mines Limited was the previous lease holder of this block. Nadidih iron ore block is one of the oldest in Koira mining sector. It has been in operation since October 1967. Bonai Industrial Company Ltd (BICO), a company owned by MD Rustagi, is the current lease holder of the mining block.
In the first phase of auction in 2020, Goa-based Sociedade De Fomento Industrial Private Limited had bagged Nadidih iron block in Koira cirle of Sundargarh district by committing to pay 141.25 per cent premium on the sale value of the ore to the State Government but failed to operate it forcing the State Government to again put for auction.
Nadidih (Feegrade) will be auctioned on Monday. Earlier Naveen Jindal led Jindal Steel and Power Limited had bagged the Kasia Iron Ore-Dolomite Mines block under Joda mining circle in Odisha’s mineral rich Keonjhar at a premium of 118.10%.
Esseling Mining and Industries Limited of Aditya Birla Group the previous lease holder, Tata Rungta , MSPL, Arcellor Mittal and ESL were in the race , but JSPL surprising all, offered the highest bid and won the block at a premium of 118.10%. The Kasia Iron Ore-Dolomite Mines spread over 194.19 hectares.
With the recent amendment in the mining auction rules, the successful bidder JSPL may not have to seek fresh environment clearance for the working block.The iron ore block will be a great boost to cater to the raw material need of the JSPL’s 6MTPA steel plant at Angul.
Total 123 bids have been received by the State for the 11 mineral deposits. The total blocks include Kasia, Nadidih (Bico), Nadidih (Feegrade), Teherai, Pureibahal, Chandiposhi, Jumka, Dholtapahar, Netrabandha Pahar (West), Gandhalpada and Karlapat.
After auction of these five blocks, the government would initiate second round of auction likely in October during which as many as 5 mineral deposits will be auctioned. These include Pipalmunda, Garamurarh, Uskalvagu, Behera-Bhanjipali dolomite blocks and Naringpanga graphite block.
Further, Sociedade De Fomento Industrial Private Ltd, Vishal LPG Industries and Tarama Apartment Private Ltd are debarred from participating in Nadidih Iron Ore Block (BICO), Nadidih Iron Ore and Manganese Block (FEEGRADE) and Teherai Iron Ore and Manganese Block, respectively.
The state auctioned all the 24 mines in FY21 whose lease got expired. As on date ,19 of the 24 auctioned mines have already started operation and production.These 24 Mines holds Iron Ore 1716.92 mt, Manganese 8.77 mt and Chrome Ore having 104.96 mt, which was worth Rs.4,87,082.55 Crore. Out of 24 Mineral Blocks, 11 are in Keonjhar, 8 in Sundargarh 03 in Jajpur and 1 in Mayurbhanj. Out of the 24 auctioned mines, production also started at 19 of these.
