Out of six firms, which had submitted bids for the mine block, JSW Steel succeeded as the preferred bidder for 31.5 MnT iron ore block.
Out of 14 iron ore mine blocks put up for auction in Karnataka, the 7 blocks have witnessed aggressive bidding from the bidders. Out of these 7 iron ore blocks, JSW Steel succeeded as the preferred bidder for the Rama Rao Paol mine block.
Rama Rao Paol mine has total geological resources of 31.53 MnT iron ore of average grade of Fe 56.6%. Other five firms which had put in bid for the mine block include – BMM Ispat. Kalyani Steels, Kirloskar Ferrous Industries, MSPL and Vedanta.
“JSW Steel has bagged the Rama Rao Paol mine block in Karnataka e-auction. The Supreme Court had fixed the reserve price at 35% of the average price. JSW Steel emerged as the H1 bidder quoting 90.82% of average price. Apart from this, the company will have to pay 15% Royalty, 1.5% DMF, 12% FDT and VAT”, shared an official of Karnataka DMG to SteelMint.
He further added that it is expected that the iron ore block named Lakshmi Narayan Mining Company will be put up for auction today i.e 3 Oct’16. The mine has reserves of 14.71 MnT iron ore with average grade of Fe 52.91%.
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