Most merchant miners left behind in the fresh mines auction

Steel users lead the bids at high premiums
Report by Malay Mohapatra; Kendujhar: While the mines auction in Odisha is going on, Govt is targetting a huge revenue of 75,000 crore rupees revenue out of this. Big Mining houses like Rungta, EMIL , m/s 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% and KN Ram &Co retained it’s the 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 a premium of 118.05 % , Arcellor Mittal has bagged the Thakurani mines, at a premium of 107.5%, Syam Ores was top bidder of 135% premium for Jilling Iron Mines. Jindal Steel Works (JSW) has grabbed 4 mines i.e Ganua mines at 132% premium, Nuagaon mines at 95.2% premium , Narayan posi at 98.55% and Jajang Iron Mines at a premium of 110%.The ore prices of iron and manganese is 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 stell users without mines, experts opined.