Odisha govt to put only two mines for auction

The Odisha government would put only two mines for auction in the first phase even as it had identified 12 blocks for open bidding in the state.
"Two mines like Ghoraburahani-Sagasahi East Iron Ore Block and Jhunka-Patriposi block, will be put for auction in the first phase," state steel and mines minister Prafulla Kumar Mallick told the Assembly in a written reply today.
The two mines are located in Sundergarh district.
Mallick informed the House that the 12 mines identified for auction comprised five iron ore mines, five limestone blocks, one bauxite block and one manganese block.
Ghoraburanhani-Sagasahi East Iron Ore Block is of 2.435 sq km having 116.16 Million Ton Reserve of Iron Ore and Jhumka-Pathiriposi Iron Ore Block covering 3.10 sq km having reserve of 30 Million Ton of Iron Ore as per the survey taken up earlier, official sources said.

Chief Minister Naveen Patnaik while chairing over the High Level Clearance Authority (HLCA) meeting has also asked to reserve Ghoraburhani-Sagasahi East Block for the End-Use of Integrated Steel Plants, they said.

According to Section 6 (3) of Mineral Auction Rules, 2015 under Mines and Minerals (Development & Regulation) MMDR Amendment Act, 2015, state governments are empowered to decide the end use of a Mineral Lease.
The state government was of the view that it would take a decision regarding auction in the second phase after getting response from the two Iron Ore Blocks auction in the first phase.
Union Mines Secretary Balvendra Kumar had recently visited the state to expedite the mines auction process in Odisha.

Sources, however, said that low prices of iron ore both at international and domestic market has forced the state government to go slow in the mines auction process.
SBI Capital Markets Ltd (SBI Caps), a fully owned subsidiary of State Bank of India, has been appointed as the Transaction Advisor for conducting mineral auctions, Mallick said.