Odisha invites bids for iron ore block with 100 mt reserve

The state government today formally opened the process for e-auction of mineral assets with the offering of Ghorhaburhani-Sagasahi iron ore block with geological reserve of 99.59 million tonne. The block is at G2 exploration stage and located in Koira sector in Sundargarh district. The block has been reserved for integrated steel plant as end use and mining lease (ML) will be issued to the successful bidder.

The electronic auctions will be conducted by central PSU MSTC Ltd. The state government has invited technical and financial bids from eligible bidders. The bidders are required to pay Rs 5 lakh as fee for purchase of tender document. The last date for purchase of tender document is February 5 while the deadline for bid submission is February 10, 2016. The notice inviting tender (NIT) was opened today.

 

"The Ghorhaburhani-Sagasahi iron ore block has been offered for auction. MSTC Ltd is the online auction platform provider. The model tender document and NIT has been posted on the MSTC website", said Deepak Mohanty, director (mines).

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).

The successful bidder who bags ML for the block will obtain all statutory licenses and permits needed for mining like forest clearance, wildlife clearance, environment clearance, consent to establish, permission for mine opening and consent of the gram sabhas.

Site visit of the mineral block would commence on publication of NIT and would end on bid due date. Bidders who have purchased the bid document would be eligible to visit the block and the site visit is to be done with prior notice to the state government.

In the first round of e-auction, the bidder is required to submit the technical bid and initial price offer which would be a percentage of value of mineral despatched and must be equal to or greater than the reserve price. The highest initial price offer among the technically qualified bidders would be the floor price for the second round of online auctions.

In the second round of e-auctions, the qualified bidders would submit their final price offers which would be a percentage of the mineral despatched and must be greater than the floor price. The e-auction process would be annulled if none of the qualified bidders submit final price offers. The qualified bidder who submits the highest final price offer would be declared the 'preferred bidder'.

Then, the state government would issue a 'Letter of Intent' to the preferred bidder upon payment of first installment of the upfront payment. The state government and the state government would enter into a mine development cum production agreement.