Indian government has cleared the Mineral Auction rule for non-coal minerals (Iron ore, bauxite, manganese ore, limestone) under the MMDR act, 2015. This rule gives power to the state government to conduct auction of minerals based on proven reserve of minerals.
The state governments will be required to specify the reserve price, which will be mineral despatched in a month multiplied by its sale price, as published in the Indian Bureau of Mines for the month of despatch.
Similar to the e-auction of coal blocks, there will be a two-stage bidding process, where bidders will have to give an initial price offer at the technical stage. The initial price offer will have to be higher than the reserve price.
To be eligible for participation in the auction of either of the licence/lease, the mineral reserve should not exceed more than 1.25 times the requirement of bidder for its specified end-use over 50 years. Also, bidders will need to furnish performance bank guarantees, which will be linked to the milestones in the mining plan.
http://mines.nic.in/writereaddata/Contentlinks/7736a59f06074df5a147d13e80bb5672.pdf
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