Govt to remove logistic cost to calculate metallurgical grade bauxite ASP

Revised conversion factor would apply to new mining leases granted following the notification

The Ministry of Mines has proposed revising the conversion factor used in calculating the Average Sale Price (ASP) for metallurgical grade bauxite, a critical component in the auction process for bauxite blocks. ASP, which determines the value of estimated resources and the premium payable by auction winners, currently uses a conversion factor of 6.4 per cent based on the London Metal Exchange (LME) aluminium price.

 

However, after multiple industry representations and legal challenges, the ministry has recommended reducing this factor to 4.9 per cent to better align with actual bauxite costs. To achieve this, the government has removed average logistic