Iron Ore Auctioning

Goa Chief Minister Manohar Parrikar on Monday said that there was no other option other than auctioning mining leases to resume iron ore extraction in the state, which is set to stop from March due to a Supreme Court order.

Goa Chief Minister Manohar Parrikar today said his government will explore all options, including auction of mining leases, to ensure that the mining industry is not affected by the Supreme Court order which set aside second renewal of 88 iron ore mining leases in the state.

JSW does not own any iron ore mines and is forced to import the raw material from time to time. It also buys millions of tonnes of coking coal from countries such as Australia, Canada and the US.

The first successful auction took place in February 2016, with two small limestone blocks in Chhattisgarh going under the hammer. The mineral-rich state will generate about Rs 18 crore from the two blocks over the next 50 years.

After the industry's lukewarm response to the first phase of mines auction, states are gearing up for a second, which will see mines bearing minerals like gold, diamond and iron ore go under the hammer.

States are expected to auction around 20 iron ore blocks in the current financial year, including some of those which were left unsold in the last round.

India produced 136 million tonnes of iron ore last fiscal year ended March 31. About 1.5 million tonnes of ore are needed to make 1 tonne of steel, implying India's ore output will have to more than triple in 10 years if steel companies are to be self sufficient.

To ensure raw material supply to its plants, Jindal Steel and Power Ltd (JSPL) may bid for iron ore mines in Odisha in forthcoming auctions, which are scheduled to start in October-November this year.

India's 12 mineral producing states will put 82 mining blocks containing minerals such as iron ore, bauxite and limestone under the hammer by October-November this year, a top government official said on Tuesday.

In a bid to bring in reforms in the mining sector and enhance transparency, the government plans to auction minerals such as iron ore, bauxite and manganese, Parliament was informed on Wednesday.

Prime Minister Narendra Modi's government last Monday issued an executive order under which states will have to auction off mines to "remove discretion in grant of mineral concessions".

Steelmakers such as Tata Steel and Jindal Steel and Power have their own iron ore mines, whereas JSW Steel buys the raw material and would benefit from the order, called an ordinance.

The cabinet has cleared emergency executive orders to greatly ease land-acquisition rules and auction minerals such as iron ore to kickstart hundreds of billions of dollars in stalled projects. Finance Minister Arun Jaitley said that while the interests of farmers have been protected, five categories of projects including defense and national secu...

The BSE Metals index ended 2.36 per cent higher after reports suggested that the government may take the ordinance route to ease land-acquisition rules and auction minerals such as iron ore to kick start stalled projects. Sesa Sterlite, JSPL, Hindalco all gained over 3 per cent to be among the top 5 gainers in Nifty.

Shares in Sesa Sterlite fell as much as 12 per cent to a low of Rs 218.90 on Tuesday after the Supreme Court on Goa mining said that pre-2007 iron ore belongs to the state. The pre-2007 iron ore has to be auctioned, the top court said.

Goa Chief Minister Manohar Parrikar on Monday said that there was no other option other than auctioning mining leases to resume iron ore extraction in the state, which is set to stop from March due to a Supreme Court order.

Goa Chief Minister Manohar Parrikar today said his government will explore all options, including auction of mining leases, to ensure that the mining industry is not affected by the Supreme Court order which set aside second renewal of 88 iron ore mining leases in the state.

JSW does not own any iron ore mines and is forced to import the raw material from time to time. It also buys millions of tonnes of coking coal from countries such as Australia, Canada and the US.

The first successful auction took place in February 2016, with two small limestone blocks in Chhattisgarh going under the hammer. The mineral-rich state will generate about Rs 18 crore from the two blocks over the next 50 years.

After the industry's lukewarm response to the first phase of mines auction, states are gearing up for a second, which will see mines bearing minerals like gold, diamond and iron ore go under the hammer.

States are expected to auction around 20 iron ore blocks in the current financial year, including some of those which were left unsold in the last round.

India produced 136 million tonnes of iron ore last fiscal year ended March 31. About 1.5 million tonnes of ore are needed to make 1 tonne of steel, implying India's ore output will have to more than triple in 10 years if steel companies are to be self sufficient.

To ensure raw material supply to its plants, Jindal Steel and Power Ltd (JSPL) may bid for iron ore mines in Odisha in forthcoming auctions, which are scheduled to start in October-November this year.

India's 12 mineral producing states will put 82 mining blocks containing minerals such as iron ore, bauxite and limestone under the hammer by October-November this year, a top government official said on Tuesday.

In a bid to bring in reforms in the mining sector and enhance transparency, the government plans to auction minerals such as iron ore, bauxite and manganese, Parliament was informed on Wednesday.

Prime Minister Narendra Modi's government last Monday issued an executive order under which states will have to auction off mines to "remove discretion in grant of mineral concessions".

Steelmakers such as Tata Steel and Jindal Steel and Power have their own iron ore mines, whereas JSW Steel buys the raw material and would benefit from the order, called an ordinance.

The cabinet has cleared emergency executive orders to greatly ease land-acquisition rules and auction minerals such as iron ore to kickstart hundreds of billions of dollars in stalled projects. Finance Minister Arun Jaitley said that while the interests of farmers have been protected, five categories of projects including defense and national secu...

The BSE Metals index ended 2.36 per cent higher after reports suggested that the government may take the ordinance route to ease land-acquisition rules and auction minerals such as iron ore to kick start stalled projects. Sesa Sterlite, JSPL, Hindalco all gained over 3 per cent to be among the top 5 gainers in Nifty.

Shares in Sesa Sterlite fell as much as 12 per cent to a low of Rs 218.90 on Tuesday after the Supreme Court on Goa mining said that pre-2007 iron ore belongs to the state. The pre-2007 iron ore has to be auctioned, the top court said.