Indian government is about to auction 80 mines (including 20 major iron ore mines) via 1st such sale which is likely to take place in Oct-Nov’15.
As a measure to revive the corruption tainted Indian mining industry, the government is looking forward to auction about 80 mines (including 20 iron ore mines) via its 1st sale which is likley to be conducted in the month of Oct-Nov’15.
“Most of the states are in the midst of carrying out their pre-auction activities and hopefully by the end of Oct & Nov they will start (auctions)”, said Balvinder Kumar, Mines Secretary.
Though the mines auctions will start somewhere between Oct & Nov’15, it will not immediately result in an increase in the country’s iron ore production. However, it will bring production closer to the country’s increasing iron ore requirement, making it less reliant on imports. Government has plans to treble steel production capacity, which is currently at 88 MnT to 300 MnT in 2025.
Most of the iron ore mines being sold are from the state of Karnataka, which is known for its high quality ore. This will assist steelmakers in southern India, like JSW Steel, who had to make their way to imports owing to temporary suspension of mining activities imposed in states of Odisha and Jharkhand.
Odisha Govt. offers POSCO a proposal to set up a JV with OMC
The Prime Minister’s Office has asked Odisha govt. and POSCO to amicably work out a solution for POSCO’S USD 12 bn Odisha project. The project has been stuck since 2005 for want of land acquisition, iron ore linkage and other clearances.
Odisha govt. offered two solutions for steady iron ore supply for the project that includes a joint venture with state-run Odisha Mineral Corporation (OMC) or a long-term supply agreement with the firm. However, the steel major has not given any indications on its future course of action.
-Sourced
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