Given the rules suggested by the union mines ministry for auction of mining leases, the Odisha government is under apprehension that actual auction process could not be possible in next 2-3 years.
“The government of India has constituted a technical committee for suggesting parameters for proving mineralization before the auction process. Based on recommendations, a draft set of rules has been circulated by the central government few days back to the state governments and if we go by these rules, there cannot be any auction in the next 2-3 years”, said Odisha Steel and Mines Secretary, R K Sharma in the sidelines of Mineral and Metals Conclave organized by ICC.
Elaborating the rules, he added that draft rules provides the requirement of proving mineralization (proven assessment of mineral in a block) under the UNFC norms for a level called G1 level. As of now, Odisha doesn’t have a single block with G1 level. Few cases including 2-3 Iron ore and 2 Bauxite blocks have G2 level and rest are below G3 level. If we move from G2 level to G1 level in case of Iron ore blocks, we have to drill upto 35,000 metres, which will take 2-3 years.
On the other hand, he said that in next couple of weeks, the process will be initiated for giving extension to 18 closed mines under sub-sections 8(5) and 8(6) of MMDR Ordinance.
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