Chhattisgarh to auction two bauxite mines in the second phase

The success of the first phase of mines auction held in February this year has encouraged Chhattisgarh government to go ahead with a second phase of auctioning. This time, the state government is planning to put 10 more mines carrying limestone and bauxite deposits for auction.

Of the 10 mines, eight contain limestone deposits, and the remaining two are bauxite mines. The bauxite mines spread over Sarguja area are crucial for the state’s industrial growth.

In February this year, the state government had auctioned four mines, including three limestone and one gold mine. The state exchequer had garnered INR 4000 crore through the auction.

Under the amended Mines and Minerals (Development and Regulation) Amendment Act, 2015, that came into force last year, states have been powered to auction iron ore and non-coal mineral mines. Prior to this, state governments would allocate mines. But in a bid to bring in transparency, companies now have to acquire mines through competitive bidding.

“The department has started the process and is completing the formalities at the Centre level,” a senior official with the mining department was reported to be saying.

The Vedanta-controlled Bharat Aluminium Company Limited (Balco) will be eyeing the bauxite mines that will be put up for auction. It would help the company secure raw material source for its Korba aluminium facility which will be expanded to one million tonne per annum capacity down the line. The modernisation and expansion plans have already been announced by Balco.

The mines ministry stated, bauxite deposits in Sarguja’s Mainpath and Kawardha are fast depleting and will last for just three more years. Balco is reported to be also looking for bauxite deposits in neighbouring states of Madhya Pradesh and Jharkhand.