Chhattisgarh Mineral Development Corporation Ltd. (CMDC) has floated a tender to invite proposals for selection of a suitable buyer for sale of iron ore from the Aridongri mines in the state. Below is an exhaustive list compiled by SteelMint highlighting the key points in the document:
- The Aridongri mine is spread over an area of 166.80 Ha in Chhattisgarh’s Kanker district with total resources of 9.7 mn t of magnetite iron ore (- 10 mm in size) of grade between Fe 58 and +62%. The mine has a life of 20 years with peak rated capacity of 0.5 mn t which could be enhanced later.
- CMDC has appointed a contractor to carry out the task of extracting mineral from the mine and operations are already underway.
- The Corporation is on the lookout for a buyer for an initial period of 5 years. Subject to the buyer’s satisfactory performance the term may be extended for another 5 years.
- The selected buyer has to deposit advance payment of the bid value of the base price fixed at INR 1,400 (excluding royalty and other levies) by CMDC plus the premium quoted multiplied with the monthly scheduled quantity to be bought.
- The selected buyer will have to submit a performance security deposit equivalent to the amount of 15 days’ quantity of iron ore at peak rated capacity plus royalty, DMF, NMET, and other applicable taxes. The deposit would be kept with the Corporation throughout the tenure of the engagement of the buyer.
- All interested parties have to make an earnest money deposit (EMD) of INR 2 crores which will subsequently be refunded
- The selected buyer will be entitled to the extra volume of iron ore, if extracted, during the period of engagement in case of any change in mining plan upon payment of requisite extra performance security.
- The selection process will comprise a technical evaluation for shortlisting applicants and a subsequent online forward auction. The Corporation also reserves the right to open physical price bids. Prospective buyers will be finally ranked according to their financial scores.
- All applicants should have experience of average purchase of iron ore of not less than 125,000 t/per annum during the last five financial years and an average turnover of not less than INR 250 crores.
- Any applicant involved in owning or operating any iron ore mine either itself or through associates, joint ventures or subsidiaries in the last 5 years is barred from placing proposal. MDOs and mining contractors working within 10 km radius of Aridongri mine can’t participate.
- In the absence of any specific end-use clause, it is apparent that, besides manufacturers, traders too can participate in the selection process.
- The last date for sale of tender document is 15 Jan’21, while the last date for submission is 25 Jan’21.
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