BALLARI: The state government has decided to keep the auctioning of 9 category-C mines in abeyance as the sizes of these mines are too small (below six hectares).
According to the statements made by Nilaya Mitash (secretary to the Commerce and Industries Department-mines) before the Supreme Court in connection with an interlocutory appeal filed by a few category-C mines about the modalities in auctioning, the exploration work of the first phase mines will be completed by June 2016.
Karnataka will auction category-C mines in two phases.
In the first phase, 15 mines will be taken up for auctioning (Ballari-10 mines, Chitradurga-3 and Tumakuru-2).
And another 12 mines will be taken up for auction in the second phase and the exploration work will be completed by January 2017, according to the Supreme Court order on July 30.
The court has set a deadline of maximum 32 weeks to complete the auctioning of mines in the first phase and it preferred the process to be completed in 26 weeks.
Around 1,738 acres (704 hectares) will be auctioned in the first phase.
“Only the end-users engaged in production of sponge iron and/or pig iron and/or steel and/or pellets will be eligible to take part in the auction. The end-users will include Public Sector Undertakings,” the court had said in its order.
The order had also stated that the successful bidder has to extract and dispatch at least 50 per cent every year of the permissible annual production and implement the reclamation and rehabilitation (R&R) plan.
The order stated that 75 per cent of the sale proceeds from the first phase will be credited to the consolidated fund and 25 per cent to the account of Special Purpose Vehicle (SPV).