REPLY TO PRE BID QUERIES

FOR E-AUCTION

OF

MINING LEASE

FOR

LIMESTONE BLOCK

OF

NAGAUR 3B1(b), VILLAGE – DEH, TEHSIL -, DISTRICT -

IN STATE OF

DEPARTMENT OF MINES & PETROLEUM , GOVERNMENT OF RAJASTHAN

DIRECTORATE OF MINES & GEOLOGY

TENDER No. : MSTC/NRO/Directorate of Mines and Geology Rajasthan,Udaipur/ 3/ Udaipur/16-17/3065 FORWARD AUCTION No. : MSTC/NRO/Directorate of Mines and Geology Rajasthan, Udaipur/4/Udaipur/16-17/3066 REPLY TO PRE BID QUERIES MINING LEASE FOR LIME STONE BLOCK OF NAGAUR 3B1(b), VILLAGE – DEH, TEHSIL -JAYAL, DISTRICT -NAGAUR Document No.: MSTC/NRO/Directorate of Mines and Geology Rajasthan,Udaipur/ 3/ Udaipur/16-17/3065

Sl. No. Bidders Queries REPLY 1 Schedule V: INFORMATION MEMORANDUM 10(d) The geological resource is calculated Only 9 bore hole, total 220 mtr in 3B1(a) block were drilled. These figure were considered for calculated of considering 100% core recovery, which may be geological reserves at 100% core recovery, but The tender document shows the actual core recovery is very less due to mechanical reasons. less 39%. Kindly clarify why actual core recovery is not considered for calculated of geological reserves.

2 Schedule V: INFORMATION MEMORANDUM Annexure II As per available information chloride and The prospecting results are uncomplete with respect to presence of chlorine and alkalis, so we are unable to alkalis are within the limit, however few spot calculate the impact of these elements on clinker manufacturing. Kindly provide the above details at the earliest samples have been sent for analysis. so we can decide further.

3 Summary of the Mineral Block 3B1-a PART A – GENERAL INFORMATION ABOUT MINERAL BLOCK Since end use is not specified, bidder can set Please Specify area for setup of cement plant nearby notified blocks as a non mineralised zone which will not up the cement plant as deemed fit be include for further notification of limestone blocks. Tender document not specify this type of area.

4 If we will use only + 50% CaO (High Grade Material) in our existing cement plant the DMG will help or not in As per the provisions stipulated by IBM. approval of Mining Plan by IBM.

5 Calculation of Bid Security, Performance Security, Upfront Payment & Net Worth on the basis of Geological The Bid Security, Performance Security, Reserves. The Geological Reserves were calculated on the basis of 100% core recovery but actual core Upfront Payment & Net Worth is calculated on recovery is very less as shown in the tender documents. Kindly clarify the matter. geological resource, which is calculated considering 100% core recovery.

6 Clause no. 13.1 - If Upfront payment cannot be adjusted against first five year production then the balance Tender Condition Prevails. payment may be carry forward for next five year or not, please clarify. REPLY TO PRE BID QUERIES MINING LEASE FOR LIME STONE BLOCK OF NAGAUR 3B1(b), VILLAGE – DEH, TEHSIL -JAYAL, DISTRICT -NAGAUR Document No.: MSTC/NRO/Directorate of Mines and Geology Rajasthan,Udaipur/ 3/ Udaipur/16-17/3065

Sl. No. Bidders Queries REPLY 7 Summary of the Mineral Block 3B1-a PART A – GENERAL INFORMATION ABOUT MINERAL BLOCK Since end use is not specified, bidder can set required facility as deemed fit by taking Plenty of saline water is available below 100 mtr depth and this water will be used in cement plant as per our necessary approvals/clearances. requirement after purification, additional land will be required for installation of purification plant. The support will be required from government for acquiring additional land for this purpose. 8 FORMAT OF BID SECURITY Point no. 13 Tender Condition Prevails. Banks are forcing to include additional condition in bank guarantee as under:

“We are liable to pay the guarantee amount or any part thereof under this bank guarantee only and only if you serve upon us a written claim or demand on or before _____(Validity Date)

The additional condition in format of Bid Security may be allowed.The condition is as per the guidelines of IBA.

9 Schedule V: INFORMATION MEMORANDUM The successful bidder have to obtain all statutory licenses, permits, permissions, PART B– PARTICULARSOFSTATUTORYLICENSES, PERMITS, PERMISSIONS, CONCESSIONS, concessions, approvals and consents related APPROVALSAND CONSENTSRELATEDTOMINING OPERATIONS to mining operations. Further, while bidding the bidder has to take into consideration all the facts and circumstances with his own Ground waterclearance(Centre/State)-To be obtained by the Successful Bidder. assessment and wisdom after ground level Since the area is notified as dark zone (for extraction of ground water) by the Central Ground Water Authority, verification of the block. obtaining permission by the Bidder is not possible. The State Govt shall issue permission for use of surface water by the Bidder.

Condition of obtaining NOC from State/Central Ground Water to be excluded from the Conditions. REPLY TO PRE BID QUERIES MINING LEASE FOR LIME STONE BLOCK OF NAGAUR 3B1(b), VILLAGE – DEH, TEHSIL -JAYAL, DISTRICT -NAGAUR Document No.: MSTC/NRO/Directorate of Mines and Geology Rajasthan,Udaipur/ 3/ Udaipur/16-17/3065

Sl. No. Bidders Queries REPLY 10 Schedule V: INFORMATION MEMORANDUM No permission can be given as per prevailing - provisions, tender conditions prevails Exploration G 3 (Relaxation for G 2. As the estimated Geological Resources come under G3 category, with inadequate data, State Govt. shall issue permission to successful Bidder to carryout supplementary exploration to prepare a scientific, systematic & sustainable mining plan with higher degree of confidence. To prepare a scientific, systematic & sustainable mining plan with higher degree of confidence.

11 Schedule-V:INFORMATION MEMORANDUM The Deh village is more than one km from 3 (a) Local Infrastructure block boundary and as mentioned highway Will the proposed widening of Salasar-Nagaur Section of National Highways 65 besides six bypasses of 30 km widening is proposed near Deh village may not length at , , Ladnun, , Jhareli and Deh impact the estimated limestone affect the block. resources in mentioned block for winning ? If so, the reduction in the estimated limestone resources

12 Schedule-V:INFORMATION MEMORANDUM - 3 (b) Host Population As per census 2011, villagesDeh and As the village Deh only falls in the mineral Sarasani have population of 9498 & 1476 respectively totaling to 10974 whereas in the document host block, so host population of village Deh is population is mentioned as 9488 only. Again total Scheduled Caste and Scheduled Tribe population of these mentioned in the tender document. villages is 2433. Details of tribal land not furnished if any. In case there are any such lands, clarity on acquisition Further, while bidding the bidder has to take of such lands needs to be incorporated. into consideration all the facts and circumstances with his own assessment and wisdom after ground level verification of the block. REPLY TO PRE BID QUERIES MINING LEASE FOR LIME STONE BLOCK OF NAGAUR 3B1(b), VILLAGE – DEH, TEHSIL -JAYAL, DISTRICT -NAGAUR Document No.: MSTC/NRO/Directorate of Mines and Geology Rajasthan,Udaipur/ 3/ Udaipur/16-17/3065

Sl. No. Bidders Queries REPLY 13 Schedule-V:INFORMATION MEMORANDUM The core recovery may be less due to Resources estimation techniques (e) mechanical reasons. In adjoining areas, core Detailed description of the method used and the assumption made to estimate tonnages and grade (section, recovery is more than 90%.The bore holes polygon, inverse distance, geostatistical, or other method) spacing is between 300 to 600 meters which is The present investigation is of preliminary prospecting nature. between G-2 and G-3, further relaxed by Govt. The recovery of lithounits in core boreholes mentioned in the borehole logs in the Geological report averaged to of . be 44% whereas no consideration of the same has been done during resource estimation due to which the resource value as well as upfront payment might have escalated 56% more. Recovery percentage shall be considered in resource evaluation as the mines opened in Nagaur limestone belt exhibits significant presence of clays Due to 100% recovery consideration and MgO< 5%, the resource values increased hence upfront payment increased, which will impact the bidder during first 2 years of 0% mining.

14 Schedule-V:INFORMATION MEMORANDUM The overall average of block is CaO = 47.47%, Resources estimation techniques (e) Detailed description of themethod used and theassumptionmade to SiO2=4.90%, MgO=3.74% estimatetonnages andgrade (section,polygon, inverse distance, geostatistical, or other method) The present investigation is of preliminary prospecting nature.

The cutoff grade for estimation of resource is considered as CaO > 40% &MgO< 5%, whereas as per threshold value of IBM the MgO should be < 4% though the CaO % considered as > 40% but in borehole logs thickness of limestone with CaO =34% - 40% and MgO< 4% is only 1m. encountered in borehole no. DH-7 sample no 17. The cutoff grade may please be reconsidered as CaO > 40 % and MgO< 4%. Due to 100% recovery consideration and MgO< 5%, the resource values increased hence upfront payment increased, which will impact the bidder during first 2 years of 0% mining. REPLY TO PRE BID QUERIES MINING LEASE FOR LIME STONE BLOCK OF NAGAUR 3B1(b), VILLAGE – DEH, TEHSIL -JAYAL, DISTRICT -NAGAUR Document No.: MSTC/NRO/Directorate of Mines and Geology Rajasthan,Udaipur/ 3/ Udaipur/16-17/3065

Sl. No. Bidders Queries REPLY 15 Payments by the Successful Bidder The average limestone price considered is The upfront payment is 0.5% of the value of estimated resources as per Rule 11 (1) of Mineral Auction Rules same with that of other limestone blocks of the 2015. Further, the value of estimated resources is equal to the product of the estimated quantity of mineral same state, hence tender condition prevails for resources for which the mineral block is being auctioned expressed in metric tonne and the average price per upront payment. metric tonne of such mineral as published by IBM for the relevant state for a period of 12 months immediately preceding the month of computation of the value of estimated resources. However it is observed while back calculating that the average limestone price considered is at variance with that of other limestone blocks of the same state even though all these tender documents are notified in same month.

The value of resources as well as the upfront payment may please be revisited and duly corrected/modified.

For the Bidder to determine the correct impact of value of resources on upfront payment etc

16 Schedule V: INFORMATION MEMORANDUM The successful bidder have to obtain all Kindly provide the details regarding role of the Government in facilitating the Land Acquisition and R&R statutory licenses, permits, permissions, activities with time lines. concessions, approvals and consents related Clarification on the support State Govt. will provide towards Land procurement and R & R. to mining operations. Further, while bidding the bidder has to take into consideration all the facts and circumstances with his own assessment and wisdom after ground level verification of the block.

17 Schedule V: INFORMATION MEMORANDUM As per Minerals (Evidence of mineral Contents) Point no-7 Rules, 2015, G-2 required drilling of 400 , while Boreholes were drilled on variable distances 300to 600 mts.The spacing does not justify in establishing the in this block drilling is at 300 m to 600 m which limestone reserves under G2 as per UNFC Norms.TAKING RELAXATION FOR SUCH DRILL SPACING is between G-2 & G-3 level of exploration, UNDER G2 WILL NOT ESTABLISH THE RESOURCES AUTHENTICITY. further relaxed by Govt. of India.

UNFC norms not to be changed REPLY TO PRE BID QUERIES MINING LEASE FOR LIME STONE BLOCK OF NAGAUR 3B1(b), VILLAGE – DEH, TEHSIL -JAYAL, DISTRICT -NAGAUR Document No.: MSTC/NRO/Directorate of Mines and Geology Rajasthan,Udaipur/ 3/ Udaipur/16-17/3065

Sl. No. Bidders Queries REPLY 18 Exploration report of Limestone block Influence of drilled borehole has been Introduction-page:112 second para considered for resource estimation using polygonal method as per NCCBM guidelines, A total of 240 mts drilling /core logging was achieved from 08 nos of vertical bore hole therefore rest of the automatically comes under (borehole no DH-01 to 08 ) on available govtland.What about the rest of the area in govt and pvt land ? PL mineralised area. CLARIFY WHETHER THE BALANCE AREA IS BARREN OR CONTAIN LIMESTONE.

Exact area covered by drilling may be mentioned

19 Exploration report of Limestone block 3b(1)b METHOD OF ESTIMATION As per Minerals(Evidence of mineral Contents) Rules, 2015, G-2 required drilling of 400 , while The present investigation is of preliminary prospecting nature comprising reconnaissance prospecting and in this block drilling is at 300 m to 600 m which exploration by placing boreholes on variable distances of 300mt to 600mts.THE BLOCK NEEDS DETAILED is between G-2 & G-3, it can not be considered PROSPECTING TO ESTABLISH MINEABLE LIMESTONE RESERVES.TO DECIDE ON THE CAPACITY OF at priliminary propecting. THE CEMENT PLANT.

PL CUM ML COMPOSITE LICENSE BE CONSIDERED INSTEAD OF ML.

20 Exploration report of Limestone block 3b(1)b METHOD OF ESTIMATION No area is identified for ancillary activities.

The resources falling under ancillary activities area have been also included in the geological resources as per instruction-WHEN THE AREA IS IDENTIFIED FOR ANCILLARY ACTIVITIES,THE LIMESTONE IN THIS AREA IS NOT MINEABLE.PL MENTION THE ACTUAL RESOURCES.

Area identified for ancillary activities not to be considered for mining.

21 Exploration report of Limestone block 3b(1)b The information is available in Schedule-V: Sampling and Analysis Information Memorandum

All samples have been sent to central laboratory for their chemical analysis-AS PER THE NORMS ABOUT 10% OF SAMPLES TO BE CHECKED AT ANY REPUTED LABORATORY.PL CLARIFY

CHECK ANALYSIS NEEDED TO ESTABLISH THE GRADE AND AUTHENTICITY REPLY TO PRE BID QUERIES MINING LEASE FOR LIME STONE BLOCK OF NAGAUR 3B1(b), VILLAGE – DEH, TEHSIL -JAYAL, DISTRICT -NAGAUR Document No.: MSTC/NRO/Directorate of Mines and Geology Rajasthan,Udaipur/ 3/ Udaipur/16-17/3065

Sl. No. Bidders Queries REPLY 22 Exploration report of Limestone block 3b(1)b Limestone with silica >14% cannot be considered as rejects, it is to be used after Statement showing bore hole analysis blending.

High silica Limestone bands having SiO2>14% have to be treated as rejects and to be excluded from the Limestone Quantity estimated.

Exploration report of Limestone block 3b(1)b Statement showing bore hole analysis

23 Exploration report of Limestone block 3b(1)b Average depth of 30 m is considered for drilling, as in few boreholes, low magnesian Statement showing bore hole analysis limestone is intersected at the depth of 30 m. Most of the Boreholes drilled not established the full thickness of useful limestone. Boreholes closed in cement grade limestone only.

Entire thickness of cement grade limestone may be confirmed by drilling.

24 Exploration report of Limestone block 3b(1)b Estimation is based on 100% core recovery, METHOD OF ESTIMATION although poor recovery may be due to With poor core recovery and limited drilling inputs,the estimated limestone resources is not reliable as the mechanical reasons resources is not based on 100%core recovery.

Estimations may be made on actual core recovery percent

25 Exploration report of Limestone block 3b(1)b Bidder has to make all assessment for METHOD OF ESTIMATION technical and commercial feasibility of the mineral block Geological resource blocked under statutory safety barrier(all along leasehold area,Roads, Electrical Lines etc) may be deleted and net resources available may be shown REPLY TO PRE BID QUERIES MINING LEASE FOR LIME STONE BLOCK OF NAGAUR 3B1(b), VILLAGE – DEH, TEHSIL -JAYAL, DISTRICT -NAGAUR Document No.: MSTC/NRO/Directorate of Mines and Geology Rajasthan,Udaipur/ 3/ Udaipur/16-17/3065

Sl. No. Bidders Queries REPLY 26 Exploration report of Limestone block 3b(1)b Mine Plan has to be prepared with the available METHOD OF ESTIMATION geological data. With limited prospecting data and poor core recovery,it may not be possible to Prepare Mine Plan for approval from IBM.

27 Exploration report of Limestone block 3b(1)b Geological Report with Annexures and Maps is METHOD OF ESTIMATION already furnished in the tender document.

DETAILED PROSPECTING REPORT WITH ANNEXURES AND MAPS MAY BE PROVIDED

28 Exploration report of Limestone block 3b(1)b Method of resource estimation is as per the METHOD OF ESTIMATION NCCBM norms.

LIMESTONE BLOCKS MAY BE PROSPECTED AS PER THE NCBM NORMS FOR PARTICIPATION OF CEMENT COS IN AUCTION.

29 Clause no. 13 Auction is being conducted on estimated mineral resource as per Mineral (Evidence of ALL PAYMENTS LIKE BID SECURITY,UPFRONT PAYMENTS AND STAMP DUTIES ETC TO BE BASED ON Mineral Contents) Rule 2015 and Mineral THE ACTUAL MINEABLE LIMESTONE RESERVES ONLY. Auction Rule 2015