Odisha identifies 13 mineral blocks for auctions

The Odisha government has lined up 13 mineral blocks for auction after the Union mines ministry recently notified the Mineral Auction Rules, 2015.

Out of the 13 identified blocks, six are in the G2 exploration stage with the balance seven in the G3 level. The auction rules stipulate that those mineral blocks which have reached at least the G2 level of exploration can be considered eligible for auctions.

"DGPS (Differential Global Positioning System) survey will be taken up in respect of all these blocks lined up for auctions. The survey work is likely to be completed by the end of August this year," said a senior government officer.

The six G2 level blocks includes five iron ore mines- Sagakhai, Ghodabirami, Dholta Pahad, Balia Pahad, Jhumuka Pahad, all in Sundargarh district and one limestone deposit - Kotamela in Malkangiri district. In the G3 stage are four iron ore mines - Mankadanasha, Puraibahal, Chandiposhi, Khandadhar in Sundargarh district and three manganese ore deposits - Lasarda, Pacheri and Kendudihi in Keonjhar district.

According to the notified Auction Rules, 2015, the state governments will have the discretion to reserve particular mine or mines for any particular end use. Auctions can be conducted only through an online electronic platform. The state government may utilise any online platform which meets the minimum technical and security requirements as specified in the guidelines for compliance to quality requirements of e-procurements issued by the standardisation testing and quality certification directorate under department of information technology. The Union government has proposed an upfront payment of 0.5 per cent of value of resources by companies, who secure licence for mining major minerals like iron ore through auction under the new law.

According to the new rules proposed by Centre, minerals such as bauxite, iron ore and limestone can only be reserved for the end-use of alumina, integrated steel plants and cement plants by state governments. However, a manganese mine can't be reserved for any end-use.