Delays in achieving the mandatory G2 and G3 levels of exploration of iron ore blocks have forced the government of the eastern Indian state of Odisha to delay the auction of five iron ore mining leases, a government official said on Wednesday, June 28.
The official said that the auction of the five mines will not commence before the end of the current year.
The Indian government has stipulated that all mineral blocks to be auctioned will have to mandatorily complete advanced G2 and G3 levels of exploration before allocation to private investors, the official said.
In the case of the five iron ore mines in Odisha, advanced exploration has been completed but there have been some delays in the state government receiving the exploration reports, the Odisha state government official added.
This will push back the date for commencement of auction of these iron ore assets as the exploration reports are critical in inviting bids and in setting a reserve price for the iron ore blocks, the official said.