Date: 24 th August 2016

Transcription

1 Corrigendum 1 to Responses to Bidders Queries ( 1) on Model Tender Document and Mine Specific Tender Documents for Auctions of Category C Iron Ore Mines, Date: 24 th August 2016 Pursuant to the order of the Hon ble Supreme Court in Samaj Parivartana August 2016; Corrigendum 1 to Responses to Bidders Queries ( 1) on Model Tender Document (including MDPA) and Mine Specific Tender Documents (including MDPAs) for Auctions of Category C Iron Ore Mines is hereby issued. The responses to query nos. 151, 153, 156, 157, 159, 160, 161, 162, 163, 164 and 165, as Bidders Queries ( 1) on Model Tender Document (including MDPA) and Mine Specific Tender Documents (including MDPAs) for Auctions of Category C Iron Ore Mines, shall stand amended, as follows: S Clause The core samples with more than 45% Fe and above have been considered as the iron ore. The ore exhibits wide variations of physical properties ranging from compact, hard and massive ore to soft, granular, Resource estimation has been done with 45% Fe as cut-off grade. However, most of the steel manufacturer cannot utilize iron ore below 55% Fe content. In such scenario: 1. What are the permitted options for 1. Permissible option is beneficiation of low grade iron ore to be done by the himself to be further used only for the Specified End Use by the Successful Beneficiation plant has to 1. Permissible option is beneficiation of low grade iron ore to be done by the Corrigendum 1 to Responses to dated 19 th Feb 2016 P a g e 1 10

2 S. laminated, unconsolidated sandy blue dust (rare in Ram Rao Paol mine) or reddish brown powdery ore. (Geological Report (text)) utilization of low grade iron ore? 2. Will the successful bidder be allowed to sale low grade iron ore in the market? himself only. 2. Selling of iron ore with or without beneficiation is not allowed. Please refer Clause 6 of MDPA. 2. Selling of iron ore with or without beneficiation is not allowed. Please refer Clause 6 of MDPA Clause 6/1 of MDPA 1) Successful bidder will be required to process the iron ore (e.g. beneficiation of lumps & fines) before he can consume it. 2) What is the procedure to be followed for the sending and accounting of the ore processed? 1) Please note that beneficiation plant has to 1) Beneficiation of low grade Corrigendum 1 to Responses to dated 19 th Feb 2016 P a g e 2 10

3 S. 2) This will be as per Applicable Law. 2) This will be as per Applicable Law clause 6.2 of MDPA: (ii) not be sold or transferred or otherwise disposed, either directly or indirectly In case the mined iron ore could not be used due to FE content or other specification variation, what is to be done with the stock which cannot be used by the end users, as selling of mined mineral is not allowed. Operational effectiveness & to solve dumping problems The mined mineral which cannot be utilised for the end use can be disposed off after taking due permission from the concerned authorities The mine will be allotted for the Specified End Use, and selling of ore is not allowed. Please refer Clause 6 of MDPA. Please note that beneficiation plant has to The mine will be allotted for the Specified End Use, and selling of ore is not allowed. Please refer Clause 6 of MDPA. Beneficiation of low grade 157. MECL Report In MECL report reserves are estimated Should be allowed to The mine will be allotted for the Specified End Use, The mine will be allotted for the Specified End Use, and Corrigendum 1 to Responses to dated 19 th Feb 2016 P a g e 3 10

4 S. Fe grade-wise, present circumstances below 55% grade Fe reserves cannot be utilised by most of steel industries since they do not have facility to upgrade the same, whether in such situation, they will allow such grade ore and fines to sale in the market through e- auction. beneficiate outside the plant or should be allowed to e- auction such grade and selling of ore is not allowed. Please refer Clause 6 of MDPA. selling of ore is not allowed. Please refer Clause 6 of MDPA. Beneficiation of low grade 159. Can we put up a Beneficiation plant at Mine head, if so whether the reserve price / DMG Royalty & FDT is to be paid on the beneficiated waste slimes or not as the Yes, provided that the beneficiation plant has to Yes. Further, beneficiation of low grade iron ore can be done by the Successful Bidder/lessee himself, or in accordance with the Supreme Court s Order in Samaj Parivartana Corrigendum 1 to Responses to dated 19 th Feb 2016 P a g e 4 10

5 S. same is not moving out of the lease area. Royalties/Taxes/fees/duti es/charges/ amounts payable shall be as per Applicable Law. Royalties/Taxes/fees/duties/ charges/ amounts payable shall be as per Applicable Law We do not have a beneficiation plant, but the mine would generate low grades, we cannot sell the low grades, can we send the material to outside beneficiation plant for job work beneficiating and take the beneficiated ore from Beneficiation plant has to Beneficiation of low grade Corrigendum 1 to Responses to dated 19 th Feb 2016 P a g e 5 10

6 S. such plant into our plant for captive consumption Utilization of minerals (page 62, paragraph 6)- As per the judgement of Hon ble Supreme Court, specified End use- All Minerals extracted (1) shall be utilized for solely for specified End-use (ii) Not to be sold or transferred or otherwise disposed off, either directly or indirectly:- This gives rise to following question. 1.the sponge plant alone cannot use FINES-How to manage 50:50 Ratio 2.The pellet plant cannot use lumps, Hence 50:50 ratio despite making in the Lumps- A costly item to the made cheaper by additional cost of crushing-not in the National Interest. 1, 2, & 4.The ratio of lumps and fines at 50:50 will be considered for the purpose of calculation of shortfall quantity in case of no production after the grant of mining lease. Please refer Clause of MDPA for more details. Furthermore, it is the responsibility of the Successful Bidder to use the iron ore produced from the mine in its Specified End Use plant. 1, 2, & 4.The ratio of lumps and fines at 50:50 will be considered for the purpose of calculation of shortfall quantity in case of no production after the grant of mining lease. Please refer Clause of MDPA for more details. Furthermore, it is the responsibility of the Successful Bidder to use the iron ore produced from the mine in its Specified End Use plant. 3.Can a specified End user take a sponge iron plant on lease which have bid for mine or not. 3. the Successful Bidder must own the Specified End Use plant. 3. the Successful Bidder must own the Specified End Use plant :50% ratio would further create problem 5. Beneficiation is not a Specified End Use for 5. Beneficiation is not a Specified End Use for Corrigendum 1 to Responses to dated 19 th Feb 2016 P a g e 6 10

7 S. in dumping of fines to achieve 75% minimum production. 5.Can a beneficiation plant be put by End users/specified uses. eligibility in the bid. However, a Preferred Bidder/ Successful Bidder/ lessee can set up his own beneficiation plant for use of the beneficiated ore in the Specified End Use plant owned by him. eligibility in the bid. However, permissible option is beneficiation of low grade iron ore to be done by the 162. We do not have a beneficiation plant, but the mine would generate low grades, we cannot sell the low grades, can we send the material to outside beneficiation plant for job work beneficiating Beneficiation plant has to Beneficiation of low grade Corrigendum 1 to Responses to dated 19 th Feb 2016 P a g e 7 10

8 S. and take the beneficiated ore from such plant into our plant for captive consumption Can we put up a Beneficiation plant at Mine head, if so whether the reserve price / DMG Royalty & FDT is to be paid on the beneficiated waste slimes or not as the same is not moving out of the lease area. Yes, provided that the Beneficiation plant has to Yes. Further, beneficiation of low grade iron ore can be done by the Successful Bidder/lessee himself, or in accordance with the Supreme Court s Order in Samaj Parivartana Royalties/Taxes/fees/duti es/charges/ amounts payable shall be as per Applicable Law. Royalties/Taxes/fees/duties/ charges/ amounts payable Corrigendum 1 to Responses to dated 19 th Feb 2016 P a g e 8 10

9 S. shall be as per Applicable Law NA (Tender Document) Whether beneficiation plant can be installed in the mine area Clarification required Clarification required Yes. However, Beneficiation plant has to Yes. Further, beneficiation of low grade iron ore can be done by the Successful Bidder/lessee himself, or in accordance with the Supreme Court s Order in Samaj Parivartana 165. MDPA Clause 6.1. The Successful Bidder shall utilize the Mineral 45-58% fe content of ore & fines cannot be used directly in the End use plant. This requires beneficiation processfor which the tonnage available in proposed auction mines is very Will the Successful Bidder be allowed : a. To get low quality ore a) Beneficiation plant has to a) Beneficiation of low grade Corrigendum 1 to Responses to dated 19 th Feb 2016 P a g e 9 10

10 S. strictly in compliance with Applicable Law, including the Act and the rules framed thereunder less. Some material requires set up of pallet plant also. In this situation, following issues :- Low quantity of availability minerals and high investment in beneficiation plant. Need to set up pallet plant also beneficiated at beneficiation plant of third party on job work basis Or b. You will allow to sale such minerals to plant who has such type of facilities? b) Selling of ore is not allowed. Please refer Clause 6 of MDPA b) Selling of ore is not allowed. Please refer Clause 6 of MDPA Corrigendum 1 to Responses to dated 19 th Feb 2016 P a g e 10 10