In the latest update received by SteelMint from an official from Department of Mines (Govt of Odisha), all the 24 merchant iron ore mining leases in Odisha which were due to expire in Mar’2020 have submitted the G2 level exploration report. And reports have been forwarded to SBI Capital – the investment banking arm of state-run lender SBI — as transaction advisor and MSTC as an e-auction services provider for the upcoming mines auction. However, the final guidelines for the auction process are expected to be out after elections.
Among the conditions laid down by govt for auctioning of mining leases, one factor was that leases have to be explored up to the G2 level as demanded by Mineral Auction Rules of 2015 and data on residual mineral deposits have to be compiled by the leases. Two central government agencies- Geological Survey of India (GSI) and Mineral Exploration Corporation of India (MECL) are tasked with mineral exploratory work. The respective state directorates of mining & geology can also embark on the exploration job with assistance from MECL or GSI.
What is G2 level of exploration?
G2-level exploration’s objective is to establish the main geological features of a deposit and provide an initial estimate of size, shape, structure, and grade of the mineral in the mine. It is to be ensuring that enough mineral data available during auctions to encourage bidders for these mines, whenever they come up for auction. The bidders will be more interested during the auction as they have solid data on which they can make their bidding decision. The exploration for any mineral deposit involves four stages: reconnaissance survey (G4), preliminary exploration (G3), general exploration (G2) and detailed exploration (G1).
Major mining leases in Odisha lapsing by March 31, 2020, include the ones held by Rungta Mines, KJS Ahluwalia, Serajuddin & Company, Kaypee Enterprises, Kalinga Mining Corporation, Mid East Integrated Steel Ltd, KN Ram, RB Das, Tarini Prasad Mohanty, KC Pradhan, and Lal Traders.
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