BHUBANESWAR: The State Government has approved the proposal of Steel and Mines department to auction nine more mines.
Notice inviting tender for grant of mining lease will be issued on October 14.
This will be the second auction of mines, leases of which will expire on March 31, 2020, in less than 10 days and fourth this year.
The Government had invited tenders to grant mining leases for 10 iron ore and manganese mines on October 4.
Though the department has been keeping the mining blocks to be auctioned in the next phase a guarded secret, sources familiar with the development said three iron ore blocks, five iron and manganese blocks and two manganese blocks have been identified.
The iron ore blocks likely to go under hammer are Balda block of Serajuddin, Gorumahisani block of GS Mishra and Badam Pahar block of Lal Traders. The Balda block had an estimated reserve of 210 million tonnes (MT) of iron ore while the other two were having a reserve of over 18 MT and 6 MT.
The ore reserve of all these active mines need to be revised as mineral exploration by the existing leaseholders will continue till the expiry of the leases, sources said.
The five composite blocks of iron and manganese ore identified for auction are Jajang block of Rungta in Keonjhar district, Nadidihi and Tehrai blocks of BICO Sundargarh district, Rangalbeda-Nadikasira of Feegrade and Company and Kalmong of Rungta, all three in Sundargarh district.
The two manganese blocks kept ready for auction are located at Katasahi in Keonjhar district and Kantahar-Koira in Sundargarh district. Rungta and Sons are the existing lease holder of the two blocks.
It is not clear if the department has recommended any of the new mines for auction. Nine virgin iron mines explored by the Directorate of Geology including Chandiposhi and Pureibahal is ready for auction.
E-auction of Chandiposhi and Purheibahal blocks in Sundargarh district in May last year was stayed following an order of the Delhi High Court.
The State Government has planned to auction 40 mineral blocks - 24 expiring mines and 16 new - online in 2019.
It has already put 19 mineral blocks under auction process. Only five mineral blocks of the State has been auctioned so far.
The State which drew a blank in the last fiscal in auctions of mineral blocks, revived the process with the issue of NIT for seven blocks- five freehold deposits and two chromite blocks expiring by March 31, 2020 followed by another two in August.