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Global Mining Summit Mr.S Y Iman

Mineral Auctions in India<br>Auctions to Production : Challenges & Suggestions

Tegaindustry
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Global Mining Summit Mr.S Y Iman

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  1. Mineral Auctions in India Auctions to Production : Challenges & Suggestions

  2. Mineral Rights Allocations Which system of mineral rights and method of allocation would be best? • Objectives of Rights allocation • Equity • Efficiency • Types of allocation system • First come first served (FCFS) systems • Work program bidding • Cash bidding (auctions) • Types of mineral rights • Restrictive exploration/mining rights • Relatively unconditional rights Tega Industries

  3. MMDR Act, 2015 Stakeholders • Type of licenses/lease • Mining Lease (ML) • Composite License (CL — prospecting license cum mining lease) • Grant of Non-exclusive Reconnaissance Permit (NERRP) in case of inadequate evidence of mineral content. Tega Industries

  4. Investor’s focus in the discovery and speculation phase Tega Industries

  5. Investor’s focus in the Mine development and production phase Tega Industries

  6. Challenges • Delay in grant of all clearances even after successful auction • Overhaul of the sector to streamline approvals and development processes • Time & Cost overrun in operationalization of mines even after successful auctioning process • Collaboration between all stakeholders • Positive Interest from Investors & Financial institutions • Infrastructure development from mine site to market place • Skilled Resource availability http://www.tegaindustries.com/ Tega Industries

  7. Suggestions • Delay in the grant of all clearances and approvals that were expected to be granted as soon as the blocks were taken over by winning bidders • Efficient and quick development of mining blocks to justify the nature of winning bid prices and level of investment required for developing these blocks. • Adequate support from the government- Central, State & Local. • Consensus building with all stakeholders specially local communities before Auction the Auction takes place • Transparent Auction process & Development of execution plan for the Auction process • Proactive support by governments in resolving any issues arises even after Auctions • Sustenance of legal frameworks during the life time of Mine Tega Industries

  8. Thank You.. http://www.tegaindustries.com/ Tega Industries

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