JSW Steel wins three iron ore mines in Karnataka

10 October 2016

JSW Steel Ltd has won three iron ore mines in the ongoing auctions in Karnataka, said Union mines secretary Balvinder Kumar.

Also, Hospet-based MSPL Ltd won the Lakshminarayan Mining Co. block. The three mining blocks won by JSW Steel includes Rama Rao Paol and Tungabhadra Minerals block number 2366 and 2365. The estimated value of the iron ore in the four iron ore deposits is around Rs.17,542 crore.

“Bids for more than 100% of the reserve price were received in case of Lakshminarayan Mining Co. deposit, while in Tungabhadra Minerals (2365) deposit, bids received were 81% more than the reserve price,” Kumar said.

The revenue generated by state governments in the form of royalty and contribution towards District Mineral Foundation (DMF) from the auction of 12 mines will amount to Rs.42,892 crore over a period of 50 years. DMF is meant for the interest and benefit of persons and areas affected by mining related activities.

The technical bids for 14 ‘C’ category iron ore mines were opened on 15 September. These 14 deposits have an estimated 127 million tonne (MT) of iron ore reserves.

These winning bids will add to the number of mines auctioned so far after the Mines and Minrals (Development and Regulation) Act (MMDR) was amended in January 2015. Only 12 mines located in Karnataka, Rajasthan, Andhra Pradesh, Odisha, Chhattisgarh and Jharkhand have been auctioned under the amended MMDR Act.

Source – VCCircle