India’s Ministry of Mines to incorporate measures to prevent “squatting” on iron ore mines

Wednesday, 06 September 2017 14:17:02 (GMT+3)   |   Kolkata
       

India’s Ministry of Mines will incorporate measures to prevent “squatting” on iron ore assets secured by companies through the auction route, while amending the Mineral Auction Rules 2015, a ministry official said on Wednesday, September 6.

The official said that it has been noticed by the government that companies, after securing iron ore blocks through competitive bidding, “inordinately delay operationalizing the mines” for various reasons.

Companies, including those which secure blocks for captive mining, “squat” on the assets for reasons ranging from financial stress after overbidding at the auction, adverse market conditions, or are content simply to have enhanced assets on their balance sheet without commencing operations, the official said.

Hence, in course of amending the Mineral Auction Rules, the Ministry of Mines will either stipulate a specific timeframe for putting mines into operation or minimum production guidelines or financial penalties, or a combination of all the three, the official added.


Similar articles

India’s VSTL setting up greenfield steel pipe making unit in Odisha

27 Mar | Steel News

Import scrap prices in India move up, but low bids prevent deals

27 Mar | Scrap & Raw Materials

India’s GAIL to commission country’s first green hydrogen plant in April

27 Mar | Steel News

India’s JSPL takes operational charge of iron ore complex in Venezuela

27 Mar | Steel News

Ex-India billet prices stable, but buyers try to push below $490/mt FOB

27 Mar | Longs and Billet

India’s JSL and IIT ink pact to collaborate on R&D and production of primary alloys

27 Mar | Steel News

Ex-India HRC prices soften slightly amid slow demand globally

26 Mar | Flats and Slab

India’s coking coal imports from Russia hit peak in April-February of FY 2024-24

26 Mar | Steel News

India’s SEML subsidiary secures mining rights to iron ore block

26 Mar | Steel News

Local Indian rebar prices fall more rapidly amid sharp slowdown in procurement by large projects

26 Mar | Longs and Billet