By Anurjay Dhal
BHUBANESWAR: The Odisha Government had earlier targeted to auction as many as 9 virgin mining blocks by end of February but with first week of March, no sign of auction, which worries most of the merchant miners, those who rooted out in the last bidding of expiring mines by March 31.
Sources said, after the completion of bidding of 19 running mines under Koira,Joda and Rairangpur mining circle of Odisha’s mineral rich Keonjhar, Sundargarh and Mayurbhanj districts, the State’s Directorate of Mines was planning to to issue Notice Inviting Tenders (NITs) for 9 Virgin Mining Blocks but it has been delayed, sources added.
Auctions of virgin mineral blocks are being delayed as the Naveen Patnaik led BJD Government first prioritised the offer of merchant mines whose lease validity ceases by March 31, 2020. Market experts feel these blocks may lose out to the lapsing merchant blocks where it will be easier to recommence mining and achieve seamless production and despatch.
State Steel and Mines Department officials however informed that these blocks will be offered for electronic auctions. “ We are working on it and we will initiate the process of auctioning the 9 virgin mineral blocks soon, we hope, we will start soon,” Deepak Mohanty, Odisha Director of Mines said.
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.
Sources said, several Big Merchant miners are eyeing for virgin blocks after they lost their running mines in the current bidding. 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, 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 and others also eyeing on these virgin blocks.
