Odisha to put up four iron ore blocks for auction in January 2017

The Odisha government has lined up three iron ore blocks and one bauxite deposit for auctions in January 2017 keeping in sync with its initiative to speed up auction of mineral blocks.

Before that, the state is readying to auction five blocks- a mix of limestone and manganese blocks for auctions. The blocks in question have achieved the G2 level exploratory stage- a condition mandatory to make them eligible for auctions as per Mineral Auction Rules. A notification for auctioning these five blocks would be issued either at the end of August or early next month, said Odisha’s steel & mines minister Prafulla Mallick.

In 2017-18, an additional eight mineral blocks in the state are expected to go under the hammer.

The state cabinet recently approved the formation of Odisha Mineral Exploration Corporation as 100% subsidiary of its mining PSU- Odisha Mining Corporation (OMC). The company formed to speed up exploratory work of mineral blocks, would have an authorised capital of Rs 20 crore and initial paid-up capital of Rs 5 crore. 

So far, only one iron ore block has been auctioned in Odisha. A limestone block offered earlier for auctions was scrapped as it was found to be overlapping with the lease area of another block.

The Ghoraburhani-Sagasahi iron ore block already auctioned in the state has 99.54 million tonne (mt) of iron ore including 84.92 mt high grade ore of 63.23% iron content. Essar Steel emerged as the preferred bidder, quoting a premium of 44.35% higher than the reserve price. Jindal Steel & Power (JSPL) finished a close second with a price quote of 44.3%. Seven companies including Tata Steel had cleared the technical bids for the bock.

The block is at G2 exploration stage and located in Koira sector in Sundargarh district. The block, with deposits of 99.54 million tonne, has been reserved for integrated steel plant as end use.

The mineral concession area is spread over 139.16 hectares (ha) including 20.88 ha forest land, 110.69 ha government land and the balance 7.58 ha private land. Survey of the mineral block has been done by the Geological Survey of India (GSI).