SteelMint reported earlier that few owners of beneficiation plants in Karnataka had filed a writ petition in Supreme Court to also allow them to participate in the mine block auctions.
As per the recent update received from market sources, hearing was held in Supreme Court few days back regarding the petition filed to allow iron ore beneficiation plants to participate in Karnataka mine block auctions. As per sources, Supreme Court has allowed beneficiation plants to participate in the block auction and has asked state govt. to reply within 15 days.
It is to be noted that according to issued notice inviting tender document, only end users engaged in production of sponge iron and/or pig iron and/or steel and/or pellets will be eligible to take part in the auction. Consortium of end users are not eligible to participate in the auction. The end users will also include PSU’s.
Beneficiation plants not being a specified end use were not eligible to bid for mine block auction. However, a Preferred bidder/successful bidder/ lessee can set up his own beneficiation plant for use of the beneficiated ore in the specified end use plant owned by him.
Out of 14 ‘C’ category mines auctioned so far in Karnataka, seven mine blocks witnessed aggressive bidding from 10 firms. JSW Steel won five blocks and the remaining two blocks were allotted to MSPL.
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