By Bizodisha Bureau, Bhubaneswar, July 27, 2019: The Odisha government is preparing to auction eight mineral blocks that includes six virgin blocks and two merchant mines which will lapse by March 31, 2020. The auctions are scheduled for the first week of August 2019.

In the last fiscal, the state government was unable to auction even a single new mineral block due to pending litigation over the eligibility norms for the participation of a bidder with more than 10 square km in its leasehold. The auction of Chandiposhi and Purheibahal- both iron ore blocks – in FY19 was stalled due to a Public Interest Litigation (PIL) filed in the Delhi High Court in May 2017. The court had stayed the auctions till clarity emerged on eligibility norms.

The state government has lined up two expiring chromite mines held by B C Mohanty (Kamarda chromite mines) and Misrilall Mines (Saruabil chromite mines) for auctions. The remaining six are freehold mines – Behera Bhanjipalli (limestone), Garamurrah (limestone), Khatkurbahal (limestone/dolomite), Pipalmunda (limestone), Naringpanga (graphite) and Jagdalpur (graphite). All the eight blocks are likely to be offered to merchant miners. The eight blocks between them have 144.58 million tonne reserves with estimated resources valued at Rs 21,773.21 crore.

In this fiscal, Odisha plans to auction 40 mineral blocks online. The blocks include 16 merchant mines, with an approved capacity to produce 79 million tons of iron ore per annum.

Realising the need to build an inventory of iron ore in the light of expiring blocks, Odisha’s steel & mines department has issued a notification to provide storage licenses to stockyards.

The state government has invoked the powers under Rule 10 B of Odisha Minerals (Prevention of Theft, Smuggling and Illegal Mining and Regulation of Possession, Storage, Trading and Transportation) Rules, 2007 to permit storage licenses valid only for iron ore.

“The stockyard will be used only for the storage of iron ore meant for captive use of the licensee in its plants located within the state and shall not be despatched for trading purposes or for export outside the state. All the requisite clearances and approvals as required by law shall be obtained and maintained by the licensee”, the government notification read.