JSW Steel and Vedanta bid aggressively in iron ore mine block auctions.
SteelMint in conversation with Karnataka DMG official had earlier reported that Karnataka iron ore block auction for 14 “C” category mines has received good response.
In the latest round of update on the same, Karnataka DMG has released the list of technically qualified bidders after subsequent evaluation of the technical bids submitted by the bidders.
Out of 14 mine blocks put up for auction, the 7 blocks have witnessed aggressive bidding from the bidders. As per SteelMint’s analysis, the remaining 7 mine blocks could not attract much attention of the bidders owing to its far away location from the plants and low average grade (Fe content).
As expected, JSW Steel participated aggressively in the auctions. Devoid of captive mines, the steel maker is presently procuring iron ore from Karnataka e-auctions, NMDC (C.G.), Odisha and Jharkhand merchant mines and through imports.
Vedanta has also actively participated in the block auction. The company is presently seen sourcing iron ore from Karnataka e-auctions for its pig iron plant in Goa.
Government owned and export oriented pellet maker – KIOCL also participated in the auction. After closure of mining activities at captive mines of Kudremukh over grounds of environmental concerns, the company is currently devoid of captive iron ore mines and is looking forward for other alternatives for mining in Karnataka and other states.
Apart from these, other companies which are in race for Karnataka block auctions include Pig iron manufacturers namely Kirloskar Ferrous Industries and SLR Metaliks, standalone pellet maker – MSPL, sponge manufacturers – BMM Ispat, Minera Steel & Power and steel maker – Kalyani Steels.
NMDC has also bid for ‘Hothur Traders’ mine block. It seems that the miner may have participated in the auction for its upcoming pellet plant in Karnataka.
Iron ore mine blocks which have received maximum participation are – Lakshmi Narayan Mining Company followed by Rama Rao Paol and VS Lad & Sons
Training and mock auction to the above mentioned Technically Qualified bidders is scheduled on 23, 24 and 26 Sept’16 on e-auction platform by MSTC.
List of Technically Qualified Bidders and respective mine details
|
S.No |
Name of the Mines |
Total Geological Resource (in MnT) |
Average Grade (Fe %) |
Technically Qualified |
| 1 | Rama Rao Paol | 31.53 | 56.6 | 1. BMM Ispat 2. JSW Steel 3. Kalyani Steels 4. Kirloskar Ferrous Industries 5. MSPL 6. Vedanta |
| 2 | Nidhi Mining & Co. | 10.02 | 58.67 | |
| 3 | Karthikkeyas Manganese | 28.47 | 55.33 | 1. JSW Steel 2. MSPL 3. Vedanta |
| 4 | Hothur Traders | 10.03 | 54.41 | 1. JSW Steel 2. Kirloskar Ferrous Industries 3. MSPL 4. NMDC 5. Vedanta |
| 5 | Lakshmi Narayan Mining Company | 14.71 | 52.91 | 1. JSW Steel 2. Kalyani Steels 3. Kirloskar Ferrous Industries 4. Minera Steel & Power 5. MSPL 6. SLR Metaliks 7. Vedanta |
| 6 | VS Lad & Sons | 28.62 | 56.69 | 1. JSW Steel 2. Kalyani Steels 3. KIOCL 4. Kirloskar Ferrous Industries 5. MSPL 6. Vedanta |
| 7 | Ramgad Miners & Minerals Pvt Ltd | 2.14 | 50.39 | – |
| 8 | M.Srinivaslu | 9.88 | 55.08 | – |
| 9 | SB Minerals | 4.30 | 48.51 | – |
| 10 | BR Yogendranath Singh | 2.84 | 39.01 | – |
| 11 | Tunghabhadra Minerals | Part I – 29.71 | 58.76 | 1. JSW Steels 2. Kirloskar Ferrous Industries 3. MSPL 4. Vedanta |
| Part II -4.17 | 51.56 | |||
| 12 | Tunghabhadra Minerals | 6.94 | 59.52 | 1. JSW Steel 2. Kirloskar Ferrous Industries 3. Vedanta |
| 13 | N.Chennakesava Reddy | 3.18 | 51.73 | – |
| 14 | Mineral Mines and Traders | 9.22 | 53.26 | – |
Source: Karnataka DMG
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