Last day of Odisha mining auction: ‘Kanther Koira Managense mines’ to go under hammer

Bhubaneswar: The Government of Odisha is scheduled to auction Kanther-Koira Managense mines on Tuesday. Rungta Mines is the existing leaseholder of the mining block located in Sundergarh district.

There are six mining companies including the lessee, Yazdani, TP Sao, Vedanta, Anand Exports & PM Granite are in the race for the mines.

This mining block is probably the last mining block to be auctioned. The government has already auctioned 18 mining blocks in the current auction season that had commenced on 31st January.

Steel major JSW steel has bagged maximum 4 blocks Nuagaon, Narayanposhi , Ganua and Jajang Iron Ore mines with combined Iron Ore reserve of 1130 million tonnes. The company is planning to start mining operations as soon as possible after getting requisite statutory clearances. These mines will ensure raw materal security  for the company’s proposed 12 MTPA (Million Tonnes pwe annum) integrated steel project near Paradip Odisha.

“The Company will take all requisite steps as per the tender document to obtain Letter of Intent, all statutory clearances, execute Mine Development and Production Agreement (MDPA) and start the mining operations” JSW said in a market filing on Monday.

Apart from JSW, global steel giant Arcelor Mittal has bagged the Thakurani Iron Ore block with estimated Iron Ore reserve of 179 million tonnes.

In December the government of Odisha had cancelled auction of 29 mining blocks including 12 Iron Ore, 2 Manganese and 6 Iron & Manganese blocks, after complaints of irregularities and invited fresh bids for 19 blocks. The government is likely to invite bids for the rest 10 blocks before March.

As per the amended Mining & Minerals (Development & Regulation) Act 2015, the lease period all merchant mines will expire by March 31st.