By Our Correspondent
NEW DELHI /BHUBANESWAR/BARBIL/KOIRA: The fate of as many as 9 Virgin Mining Blocks, which was slated to be auctioned in February this year and got delayed because of COVID-19, will see some results soon with Odisha Steel and Mines Department is all set to issue notice for tender (NIT) and put these Blocks of auction in July this year.
“The Ministry of Mines has released guidelines for the auction of mineral blocks with pre-embedded clearances that will help overcome delay in operationalisation of mines into production after auction,” said Odisha Director of Mines, Deepak Mohanty.
The 9 Blocks included 7 Iron Ore, 1 exclusive Manganese,and 1 block with co-existence of Iron Ore and Manganese. The 7 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, official sources said.
As per the new guidelines, the Government will set up a project monitoring unit (PMU) to complete the preparatory work for obtaining requisite clearances, approvals and related work. The PMU will obtain all the clearances for starting a mining project, he added.
Since mining plan is the basic document to start mining operation on which hinges the environmental clearance (EC) and forest clearance (FC), the PMU is mandated to get the plan prepared by engaging a qualified person. The mining plan will be approved by the Indian Bureau of Mines (IBM) within a period of 15 days.
This will allow successful bidder the flexibility to either enhance or reduce the production limit by 25 per cent.The forest clearance (FC) has two stages. The PMU will complete the process and obtain the FC stage-I clearance as no financial commitment is required or levy to be paid.
Successful bidders will make all payments on accounts of net present value (NPV), compensatory afforestation and other related levies and charges during the FC stage-II clearance.Since obtaining land rights for mining is another time consuming process, the Ministry said PMU should get the land rights for mining in case of both Government as well as privately-owned land.The Government will also apply and obtain all other clearances which are required for the lessee to start the mining operations.
Sources closely monitoring the development said that Jharkhand’s Chaibasa headquarters Rungta Mines Ltd Group, which lost half dozen of its running mines under Joda-Koira region, is alone eyeing on more than 5 to 6 blocks. After losing its running blocks, RML Group till has 2 major blocks, which has life of more than 15 years. Most of the mines deposits of Rungta Mines Ltd are at final stage and the Merchant miner is all set play its card during auction of Virgin blocks.
Apart from RML Group, Jindal Steel and Power Ltd, Essel Mining and Industries Ltd, a subsidiary of Aditya Birla Group, which dragged the Kolkata, based Shyam Ore Pvt Ltd to Supreme Court over the lease transfer of Jilling-Langalota Block also eyeing on several virgin blocks. Serajuddin &Co, JSW Steel, Vedanta, Tatas, Thriveni Earth Movers Pvt Ltd, and others also eyeing on these virgin blocks.
Earlier, Union Mines Secretary Sushil Kumar had urged Odisha to fast track New Mining Block Bidding Process. Odisha Government had successfully auctioned at least 23 Iron, Manganese and Chrome Ore Blocks having resources worth Rs.4.87 Lakh Crore by 18 March, 2020. The State got one of the highest premiums like 144 percent in auction of one of its mineral blocks – Guali Iron Ore mines bagged by JSPL.
Out of 23 mineral blocks, 11 are in Keonjhar, 08 in Sundargarh, 03 in Jajpur and 01 in Mayurbhanj. Now with more mineral blocks all set to be auctioned, the Union Mines Ministry has asked Director General (DG) Geological Survey of India (GSI) to coordinate with the State.DG GSI has asked GSI Odisha Chief Lakhan L Viswakarma to extend all out support to the Odisha Government, which has taken the lead in the mineral block auction process, said official sources.
Union Minister Mines, Pralhad Joshi reviewed status of Geological Reports (GR) submitted by GSI and Mineral Exploration Corporation Limited (MECL). Joshi asked the Union Secretary to be in touch with State Governments and extend greater facilitations, said sources in know of the development.
