ArcelorMittal Nippon Steel India (AM/NS India), a joint venture (JV) between ArcelorMittal and Japan’s Nippon Steel Thursday inked the Mine Development Cum Production Agreement (MDPA) with the Keonjhar district administration for restarting activity at the Thakurani mine.
It may be noted that AMNS is the first among 24 successful bidders to have executed the MDPA. Most of the merchant mines whose lease tenures lapsed by March 31 this year have changed hands. The notable exceptions are Serajuddin & Company and Tata Steel which retained its Sukinda chromite lease at fiercely contested auctions. None of the merchant mines though have been able to recommence operations as the onset and spread of Covid pandemic played spoilsport, delaying paperwork.
AMNS had bagged the Thakurani iron ore block formerly held by Kaypee Enterprises at Odisha’s online auctions, quoting a premium of 107.55%. A state official said AMNS should be able to start mining from the Thakurani block from July after obtaining the grant order from the mines department. The block is endowed with 179.26 mn t of iron ore. It has an approved capacity to mine 5.5 mn t pa.
Meanwhile, the other merchant mines in Odisha are cruising to restart operations. The state government has issued vesting orders in favour of all successful bidders. Shortly, the new leaseholders would sign Mine Development & Production Agreements (MDPAs) and eventually, the lease deeds to keep the mines running again.
Since the ‘deemed clearances’ granted by the Centre are valid for two years from the date of expiry of lease validity, the new lessees will stick to the same technology and comply with the already prescribed mining plans of the Indian Bureau of Mines (IBM).
Online auctions of 24 merchant blocks with deposits of iron ore, manganese and chromite had witnessed frenetic bidding activity. The premiums for these coveted resources were steep- on an average they stood at 104 per cent. Since these mines were already operative with available attendant infrastructure for unearthing and transporting ore, they evoked resounding response.
Moreover, the new leaseholders did not have to fret for clearances as the Centre by the dint of an Ordinance, had extended the validity of all key approvals, including the critical environment & forestry clearances by two years.
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