19 JANUARY 2015AlCircle.com
Government of India to decide the parameters for mining auctions
Edited by : AL CIRCLE
1 min read
The new mining Ordinance established by the Union government allows them to set any parameters for bidding of mineral concessions which could be a share in production, payment linked to royalty or any other parameter the Centre sees fit.
According to the new Ordinance, the only way for the state to grant mineral concessions would be through auctions but the terms of the auction including conditions, procedures and the bidding parameters for different categories will be prescribed by the Union government.
The mining industry also seems fine with the terms as a company has the right to say no to bidding if it is not comfortable with the set parameters, informed Dinesh Kumar Singhi, the MD of a leading mining company in Karnataka.
Miners suggest that in order to get the best price in the auction, the government should provide as much information as possible about the mines.
It has also been decided that in case of notified minerals – like bauxite, the auction would directly deliver Mining Lease, but in situations where the mineralization has not been done and prospecting is requires, a Prospecting-cum-Mining license would be auctioned, with prior approval of the Central Government.
According to the new Ordinance, the only way for the state to grant mineral concessions would be through auctions but the terms of the auction including conditions, procedures and the bidding parameters for different categories will be prescribed by the Union government.
The mining industry also seems fine with the terms as a company has the right to say no to bidding if it is not comfortable with the set parameters, informed Dinesh Kumar Singhi, the MD of a leading mining company in Karnataka.
Miners suggest that in order to get the best price in the auction, the government should provide as much information as possible about the mines.
It has also been decided that in case of notified minerals – like bauxite, the auction would directly deliver Mining Lease, but in situations where the mineralization has not been done and prospecting is requires, a Prospecting-cum-Mining license would be auctioned, with prior approval of the Central Government.
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