While the mines auction in Odisha is going on, the Government is targetting a huge revenue of Rs 75,000 crore out of this. Big mining houses like Rungta, EMIL and Alluwalia have failed to retain any of their mines in the recent auctions while most of merchant mining companies will be out of mining business after the fresh mining auctions.
In the recent biddings this week, Nadidihi Iron mines with an estimated reserve of 20.48 million tons has been bagged by Sociedad De Formento Industrial Pvt Ltd, a Goa based company at a premium as high as 141.25 percent. Pattnaik Minerals Pvt Ltd bagged Mahulsukha iron and manganese mines in Koida circle at a premium of 92.70 percent and KN Ram &Co retained Roida II iron mines at a premimium of 90.90 percent. Also Yazdani steel has bagged the Rungta’s Kolmong mines, Vishal LPG bagged Nadidihi freegrade mines and Ghanashyam Mishra has been able to retain its Gorumahisani iron ores in recent bidding auctions. Sirajuddin & Co has bagged the Balda iron ore mine at a premium of 118.05 per cent, Arcellor-Mittal has bagged the Thakurani mines at a premium of 107.5 per cent, Syam Ores was top bidder of 135 percent premium for Jilling iron mines. Jindal Steel Works (JSW) has grabbed 4 mines i.e Ganua mines at 132 per cent premium, Nuagaon mines at 95.2 percent premium , Narayan posi at 98.55 percent and Jajang iron mines at a premium of 110 percent.
The ore prices of iron and manganese are expected to soar high immediately after the auction due to the high bidding prices and merchant miners will find it hard to compete with the market which is to remain in hands of mega steel producers. The gap between the import price and domestic price of ore will close up encouraging imports of ore by iron and steel users without mines, experts opined.