Successful bidders for iron ore and manganese mines surrender assets in Odisha

Successful bidders for iron ore and manganese mines surrender assets in Odisha

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Three successful bidders at the recently held auctions by the Odisha government in eastern India of iron ore and manganese mines have surrendered their acquired assets finding the terms of allotment of mining leases unsustainable, government sources said on Monday, November 16.

The sources said that three mining companies – Socied De Fomento Industrial Private Limited, Vishal LPG Limited and Tarama Apartments Limited – have surrendered iron ore and iron ore cum manganese composite mines, forfeiting their security deposits at the auctions, citing unsustainable conditions in the mining leases.

The sources said that the auction and subsequent grant of mining leases by the government stipulated that the mining companies will operate at 80 percent of the rated capacity of the respective mines in the first year of operations under the new mining leases, which several mining companies were finding impossible to meet.

It was pointed out that even large steel companies like JSW Limited which had won four iron ore mines at the auction and ArcelorMittal Nippon Steel Limited which won one are only able to operate their new mining assets at barely 30 percent of their respective rated capacities.

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