Four companies were shortlisted after technical evaluation for the online forward auction conducted by the Chhattisgarh Mineral Development Corporation Ltd. (CMDC) to select a buyer for sale of iron ore from the Aridongri mine in the state, sources informed SteelMint. The highest bid price quoted at the auction was INR 1,800/t (excluding royalty and other statutory levies) against a base price fixed at INR 1,400/t for iron ore (- 10 mm) of grade between Fe58% and +62%.
SteelMint had reported on 7 Jan’21 that CMDC, which had floated a tender to select a suitable buyer initially for a period of 5 years, had appointed a contractor to carry out mining operations. The selected buyer has to deposit advance payment of the bid value of the base price plus the premium quoted multiplied with the monthly scheduled quantity to be bought.
SteelMint, however, could not confirm from sources whether the auction has been finally closed. 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 CMDC throughout the tenure of the engagement of the buyer.
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. The mine has a life of 20 years with peak rated capacity of 0.5 mn t which could be enhanced later.
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