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Aggressive bidding derails Odisha's iron ore auctions

Steel News - Published on Tue, 03 Dec 2019

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ET reported that the Odisha government has decided to cancel and postpone auctions of iron ore mines by about a month. As per report, the decision was taken after Adani group and ArcelorMittal complained against JSW’s decision to bid for the largest block through half a dozen subsidiaries. The report quoted an official as saying that “It’s unfortunate that the company decided to abuse a loophole in the model bid document. We’ve decided to improve the conditions, and taking a cue from the model bid documents for coal auctions we are barring subsidiaries, affiliates and associates from participating in auctions of the same block.”

Odisha is inviting bids for 50-year mining rights to twenty mines in two phases. Among the first lot was the massive 767.284 ha Nuagaon deposit with reserves of 792.93 million tonne, larger than all other iron ore deposits on offer. Of the fifteen technical bids received for Nuagaon, six were from companies or subsidiaries of the Sajjan Jindal led JSW Group JSW Steel, JSW Raigarh, JSW Bengal Steel, JSW Jharkhand Steel, JSW Utkal Steel and Amba River Coke. Jindal SAW, Jindal Steel and Power and its subsidiary, Jindal Power, are also in the run.

These are among the more than 300 mines lapsing on 31 March 2020 as India transitions to a strict regime of auctions for mining licenses.

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Posted By : Rabi Wangkhem on Tue, 03 Dec 2019
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