India Mines Ministry identifies 50 mineral blocks including bauxite for private exploration

India's mining sector is set to witness the entry of private exploration companies as the Mines Ministry identifies 50 mineral blocks to be offered to them under the new National Mineral Exploration Policy (NMEP). The offer stands as an adjunct to one of the biggest auction of explored mineral blocks, which India government has lined up.

The Empowered Committee of the Ministry has identified the auction of 70 non-coal blocks like iron-ore, limestone and bauxite in the first tranche of the coming fiscal year.

The total number of non-coal blocks that could be identified by the Ministry for auction is estimated to reach 280.

The new NMEP introduced last year allows entry of private companies into minerals exploration domain in India. It is understood that there are around 30 specialized exploration companies- both from within the country as well as abroad, who could apply for the allocation of the mineral blocks including bauxite.

The mineral block allocation process is expected to start in 2018. The Ministry would come up with a list of registered exploration companies- domestic and international- who would be entitled to bid for the iron ore, limestone and bauxite blocks through an e-auction. The final recipient of the mining lease would be liable to pay the provincial government a royalty, while a certain percentage of the royalty will be paid to the private party.

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The private exploration companies would be asked to complete exploration and submit data to the government. On receiving the data, the government would auction the same block to other mining companies for development and production of minerals and ores such as iron ore, limestone, and bauxite.