CMYK

Date of Publication: 25-1-2020 Regd. with RNI R.No. 71519/99; No. of Pages: 36+Cover 4 Date of Posting: 29 / 30 of every month Postal Regd. No. H-HD-GPO/024/2018-2020

Official Publication of Engineers’ Association of

Price `100/-

Vol. 21 No. 7 Monthly February - 2020

Syama mine in Mali : the world’s first fully automated mine Mining Engineers’ Association of India Flat-608 & 609, Raghava Ratna Towers, A-Block, VI Floor, Chirag Ali Lane, Abids, Hyderabad - 500001 Ph.: 040 - 66339625, 23200510, Email: [email protected] Website: www.meai.org

CMYK CMYK

Date of Publication: 25-1-2020 Regd. with RNI R.No. 71519/99; No. of Pages: 36+Cover 4 Date of Posting: 29 / 30 of every month Postal Regd. No. H-HD-GPO/024/2018-2020

Official Publication of Mining Engineers’ Association of India

Price `100/-

Vol. 21 No. 7 Monthly February - 2020

Syama mine in Mali : the world’s first fully automated mine Mining Engineers’ Association of India Flat-608 & 609, Raghava Ratna Towers, A-Block, VI Floor, Chirag Ali Lane, Abids, Hyderabad - 500001 Ph.: 040 - 66339625, 23200510, Email: [email protected] Website: www.meai.org

CMYK Official Publication of Mining Engineers’ Association of India Vol. 21 No. 7 Monthly February - 2020 this issue contains...

President’s Message 5

Editor's Desk 7

News from the Mining World 8

President Sanjay Kumar Pattnaik Position Paper on atn Ideal Mineral Concession System for India 16 Vice President- I Vice President - II Vice President - III K. Madhusudhana S.N. Mathur O.P. Gupta - Ankan Mitra, Devraj Tiwari, Pankaj Satija

Secretary General Mining prospect of high grade Dolomite S. Krishnamurthy and Limestone deposits of Duqm area in Southern Oman 26 Jt.Secretary.cum.Treasurer - Dr Vivek Laul K. Umamaheswar Rao

Ex-officio Council Members MEAI News 30 Arun Kumar Kothari, T. Victor

Council Members (Elected) Conferences, Seminars, Workshops etc. 38 P.K. Satpathy, D.B. Sundar Raman, A.B. Panigrahi, Dr. Abani Ranjan Samal, Prof. Arvind Kumar Mishra, T.N. Gunaseelan, Pankaj Kumar Satija, Prof. B.B. Dhar, Ravindra Kumar Sharma, Dileep Kumar Saxena, Rajendra Singh Rathore, Prof. S.K.Parihar, Prof. Sushil Bhandari, Correspondence Address Maheem Kachhawaha, L.S. Shekhawat, R.H. Sawkar, M.S. Raju, P. Srinivasa Rao, Dr. N.K. Nanda, Dr. M.S. Venkataramayya, MEAI National Headquarters M. Sathish Kumar, P. Balamadeswaran, M. James, Dr. K. Srihari, Contact: Secretary General, Dhananjay Kumar, Rachappa, D.R. Vaze, Manish Kumar Yadav Mining Engineers’ Association of India Representatives of Life Institutional Members F-608 & 609, Raghavaratna Towers, ‘A’ Block, VI Floor, Sagar Cements Ltd. (LIM-21), The K.C.P. Ltd. (LIM-22), Chirag Ali Lane, Abids, Hyderabad - 500 001. Jubilee Granites India Pvt. Ltd. (LIM-23), Ph.: 040-66339625, 23200510 Shri Sharda Cold Retreads (P) Ltd. (LIM-24), ACC Ltd. (LIM-25) E-mail : [email protected] Nominated Members website : www.meai.org Sitaram Kemmannu, Sunil Kumar Vashisth, Dr.T.N.Venugopal, S. Kumaraswamy, A.K. Jaiswal The Views expressed by the authors in these pages are not Co-Opted Members necessarily those of Publisher / Editor / MEAI. Reproduction Deepak Vidyarthi, Chandra Mohan, Prof.Bhabesh.C.Sarkar, in whole or in part is strictly prohibited without written Atul Kumar Bhatnagar, Bidyut Chakraborty permission from the publisher.

Mining Engineers’ Journal, Vol. 21, No. 7 3 February 2020 Mining Engineers’ Journal, Vol. 21, No. 7 4 February 2020 President’s Message…… Warm greetings to all readers!

The New Year opened up on a very positive note for the mining industry.

In order to revive the present uncertain mining scenario in India with the auction dates for lapsing leases fast approaching, a path breaking reform was required. The government eased off the tensions pertaining to disruption of production due to delay in getting necessary green clearances post Opening for commercial auction of lapsing leases in March 2020 and made the process in real terms mining is a remarkable step in the “seamless” by promulgating the ordinance for amendment in the MMDR Act mining history of India. 1957 and the CMSP (Coal Mines Special Provision) Act, 2015. The amendment of the above two Acts is expected to accelerate investment in the mining sector and also promote Ease of doing business.

Opening coal for commercial mining is a remarkable step in the mining history of India. This would also allow the implementation of 100% FDI through automatic route for sale of coal. Although such significant steps have been taken in the mining sector, the mineral exploration activity remained a grey area, which needs to be further worked upon.

You would all be happy to note that MEAI has been chosen by the Skill Council for Mining Sector (SCMS), FIMI, for being partners in imparting training to develop the skills of mining workforce deployed in the mining of Minor Minerals under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) of the Ministry of Skill Development & Entrepreneurship (MSDE), implemented by National Skill Development Corporation.

Nearly 70% of the mining workforce is deployed in the minor minerals. The mines operated in the minor mineral sector are normally small, with area <50 hectares, and are mostly in the unorganized sector. This initiative will help in upgradation of skills level of all workforce in the minor mineral sector. The Skill Council for mining sector has been allocated a training target of 87,000 persons under this scheme. MEAI has initially decided to roll out this programme in the following chapters: 1) : Jaipur, Jodhpur, Udaipur chapters 2) Chhattisgarh: Raipur and Bailadila chapters 3) Jharkhand: Dhanbad chapter

It is heartening to note that most of our chapters are active in organizing various knowledge sharing activities such as conducting Workshops/ paper presentations/ seminars, Brain Storming Sessions, SCMS Training, Blood Donation Camps etc. besides holding the mandatory Executive Committee meetings. I urge upon all our Chapters to step up activities that would help in building a technically and financially strong institution so that MEAI will continue to serve the mineral sector of our country splendidly.

The second National Council Meeting is scheduled for 7th February, 2020 at , hosted by Bellary-Hospet chapter and look forward to meet many of our members from different Chapters.

With best wishes to you and your family.

Sanjay Kumar Pattnaik President

Mining Engineers’ Journal, Vol. 21, No. 7 5 February 2020 Mining Engineers’ Association of India Regd. Office : Rungta House, Barbil (Odisha) Presidents & Hony. Secretaries / Secretary Generals Life Institutional Members Period President Secretary/ Secretary Generals 1 A.P. Mineral Dev. Corp.Ltd. (LIM-12) 42 Orient Cement (LIM-59) MINING ENGINEERS’ ASSOCIATION 2 Aarvee Associates, Architects, 43 Panduronga - Timblo Industries (LIM-56) 1957-64 B.L. Verma B.N. Kanwar Engineers & Consultants Pvt. Ltd. (LIM-49) 44 Pearl Mineral Ltd. (LIM-39) 1964-67 N.S. Claire R.C. B. Srivastava 3 ACC Ltd. (LIM-25) 1967-68 L.A. Hill S. Chandra 45 Priyadarshini Cement Ltd. (LIM-5) 1968-69 H.L. Chopra M.G. Jhingran 4 Ambuja Cements Ltd. (LIM-3) 1969-70 S.S. Manjrekar V.S. Rao 46 R.K. Marbles Pvt. Ltd. (LIM-52) 5 Aravali Minerals & Chemical Industries(P)Ltd. (LIM-48) 1970-71 R.C.B. Srivastava M.G. Jhingran 47 Radials International (LIM-29) 1971-72 R.K. Gandhi B. Roy Chowdhury 6 Associated Mining Co. (LIM-19) 1972-73 I.N. Marwaha D.D. Sharan 48 Rajasthan State Mines & Minerals (LIM-53) 1973-75 R.S. Sastry M.S. Vig 7 Associated Soapstone Distributing Co.(P)Ltd. (LIM-57) 49 Rajgarhia Group of Industries (LIM-50) 1975-76 G.L. Tandon K.K. Biran 8 Belgaum Minerals (LIM-64) 50 S.N. Mohanty (LIM-62) MINING ENGINEERS’ ASSOCIATION OF INDIA 9 Bharat Alloys & Ltd. (LIM-36) 51 Sagar Cements Ltd. (LIM-21) 1975-76 G.L. Tandon K.K. Biran 10 Capstone Geo Consultants (India) Pvt. Ltd. (LIM-66) 1976-78 D.L. Patni A.K. Basu 52 Sandvik Asia Limited (LIM-46) 1978-80 R.C. Mohanty S.K. De 11 Dalmia Bharat (Cement) Ltd. (LIM-71) 1980-81 M.K. Batra R.C. Dutta 53 Sesa Goa Ltd. (LIM-11) 12 Designer Rocks (P) Ltd. (LIM-32) 1981-82 D.K. Bose S.B. Mukherjee 54 Shivalik Silica (LIM-72) 1982-83 P.R. Merh M.K. Srivastava 13 FCI Aravali Gypsum & Minerals India Ltd. (LIM-61) 1983-86 V.S. Rao L.S. Sinha 55 Shree Cement Ltd. (LIM-51) 1986-88 M.A.Khan D.K. Sen 14 Grasim Industries Ltd. (LIM-26) 56 Shree Engineering Services (LIM-15) 1988-90 Saligram Singh A. Panigrahi 15 Heavy Chemicals Ltd. (LIM-6) 1990-93 M. Fasihuddin B. Mishra 57 Shri Sharda Cold Retreads (P) Ltd. (LIM-24) 1993-95 K.K. Biran S. Chandrasekaran 16 Gujarat Mineral Dev. Copr Ltd. (LIM-18) 58 South India Mines & Minerals Industries (LIM-2) 1995-97 N.S. Malliwal Dr. P.V. Rao 17 Gujarat Sidhee Cements Ltd. (LIM-4) 1997-2001 T.V. Chowdary C.L.V.R. Anjaneyulu (S.G) 59 South West Mining Ltd. (LIM-40) 2001-2003 R.N. Singh C.L.V.R. Anjaneyulu (S.G) 18 Gulf Oil Corporation Ltd. (LIM-9) 2003-2007 Meda Venkataiah C.L.V.R. Anjaneyulu (S.G) 19 Hindustan Zinc Ltd. (LIM-60) 60 Sri Kumarswamy Mineral Exports (LIM-43) 2007-2009 R.P. Gupta C.L.V.R. Anjaneyulu & A.S. Rao 2009-2011 Dr. V.D. Rajagopal A.S. Rao 20 Indian Rare Earths Ltd. (LIM-35) 61 Sudarshan Group of Industries (LIM-47) 2011-2013 Dr. S.K. Sarangi A.S. Rao 62 Tata Chemicals Ltd. (LIM-7) 2013-2015 A. Bagchhi Koneru Venkateswara Rao 21 J.K. Cement Ltd. (LIM-58) 2015-2017 T. Victor Koneru Venkateswara Rao 22 JSW Cement Ltd. (LIM-63) 63 Tata Steel Limited (LIM-8) 2017-2019 Arun Kumar Kothari Dr.H.Sarvothaman, S. Krishnamurthy 23 Jubilee Granites India Pvt. Ltd. (LIM-23) 64 Telangana State Mineral Development Corporation Limited (LIM-75) Chapter Chairman Secretary 24 Kariganur Mineral Mining Industry (LIM-41) 65 Terra Reserves Determination 1. Ahmedabad A.K. Garg Dr. D.A. Pancholi 25 Kirloskar Ferrous Industries Ltd. (LIM-33) Technologies (P) Ltd. (LIM-55) 2. Bailadila A.K. Prajapati C.V. Subrahmanyam 66 The India Cements Ltd. (LIM-16) 3. Bangalore Dhananjaya G Reddy N. Rajendran 26 Krishna Mines (LIM-27) 4. Barajamda Manish Mishra R.P. Mali 27 Lafarge India Pvt. Ltd. (LIM-69) 67 The K.C.P. Ltd. (LIM-22) 5. Belgaum S.R. Hegde Dr. P.T. Hanamgond 68 The Singareni Collieries Company Ltd (LIM-73) 6. Bellary-Hospet K. Prabhakar Reddy S.H.M. Mallikarjuna 28 M.P.L. Parts & Services Ltd. (LIM-14) 7. Bhubaneswar R.R. Satpathy Sabyasachy Mishra 29 Madras Cements Ltd. (LIM-17) 69 Thriveni Earthmovers (P) Ltd. (LIM-31) 8. Dhanbad Dr.Pradeep K Singh Dr. Sanjay Kumar Roy 70 Transworld Garnet India Pvt. Ltd. (LIM-67) 9. Goa Cletus T D'souza E.Hymakar Reddy 30 Mahashakti Infrastructure (LIM-77) 10. Himalayan J.L. Sud Dr. S.S. Randhawa 31 Maheswari Minerals (LIM-65) 71 Tungabhadra Minerals Pvt. Ltd. (LIM-42) 11. Hutti-Kalaburagi V.D. Mali Shiojee Roy 72 Ultra Tech Cement Ltd. (LIM-10) 12. Hyderabad B.R.V.Susheel Kumar Dr. C. Narsimulu 32 Mangala Associates Pvt. Ltd. (LIM-74) 13. Jabalpur - - 33 Manganese Ore (India) Ltd. (LIM-37) 73 UltraTech Cement Ltd.A.P.Cement Works (LIM-28) 14. Kolkata Dr. A. Srikant Shameek Chattopadhyay 74 V. Thirupathi Naidu (LIM-34) 15. Ravi Chandran Raj Subodh Kasangottuwar 34 Mewara Mining (LIM-78) 16. Nagpur P.N. Sharma Dr Y.G. Kale 35 MSPL Limited (LIM-30) 75 V.V. Mineral (LIM-68) 17. New Delhi A.K. Bhandari Deepak Gupta 36 My Home Industries Limited (LIM-70) 18. Rajasthan-Jaipur P.C. Bakliwal Dr. S.K. Wadhawan 76 Veerabhadrappa Sangappa & Company (LIM-44) 19. Rajasthan-Jodhpur P.R. Dave Y. S. Sankhla 37 Mysore Minerals Limited (LIM-45) 77 VS Lad & Sons (LIM-38) 20. Rajasthan-Udaipur Dr.S.S.Rathore M.S. Paliwal 38 National Aluminium Co. Ltd. (LIM-1) 21. Raipur B L Bhati Dinesh Singh 78 W.B. Engineers International Pvt. Ltd (LIM-13) 22. Rayalaseema Jayavelu A. Anil Kumar 39 National Institute of Rock Mechanics (LIM-76) 23. Singareni S. Chandrasekhar K. Laxminarayana 40 NMDC Ltd. (LIM-20) INSTITUTIONAL MEMBER 24. Tamil Nadu G. Raghunath Singh K.Sendil Kumar 25. Veraval-Porbandar Arun Kumar Sharma Ajay Kumar Jain 41 Obulapuram Mining Co. (P) Ltd. (LIM-54) 1. CSIR - CIMFR, Dhanbad (April 2019-March 2020) 26. Visakhapatnam Prof. C. Kasipathi K. Venkata Ramana

Mining Engineers’ Journal, Vol. 21, No. 7 6 February 2020 Editor's Desk MEAI (Association) is representing all the technical professionals in the mineral industry. While the name, for historical reasons, mentions mining engineers only, the Association in fact embraces many other mineral, coal and petroleum industry disciplines: geoscientists, engineers, environmentalists, computer scientists etc. While the Association represents individual mineral industry professionals, the Indian industry as such is represented by other organisations such as FIMI- Federation of Indian Mineral Industries, FICCI- Federation of Indian Chambers of Commerce and Industry, CII- Confederation of Indian Industry, ASSOCHAM- Associated Chambers of Commerce We in the industry have generally not been of India etc., with companies as their members. MEAI is all very good at overcoming the negative about people, and in recognition of this, MEAI Awards are presented to recognize outstanding service to the Association, attitudes and establishing a positive climate of public opinion ourselves. Dr. P.V. Rao the industry, and the profession. Editor, MEJ The people, but not companies or organisations, do things. The members of the Association must make a major contribution as a part of their responsibilities as professionals. Members in positions Editorial Board of authority in enterprises have a particular role in ensuring that no company discards or President - MEAI Chairman destroys historical records or mining relics without making sure that those of unique value are preserved in a suitable manner. Editor - MEJ Member The anti-mining campaigns of recent times have slowed down and, at times, deferred mineral Publisher - MEJ Member projects but have not stopped the industry’s growth. We in the industry have generally not been very good at overcoming the negative attitudes and establishing a positive climate of Prof. H.S. Pandalai Member public opinion ourselves. The large majority of people probably never see a mine, an ore Prof. Singham Jayanthu Member treatment plant, a smelter or a refinery, and do not have first-hand knowledge to test the validity of the misinformation so ably distributed by the opponents. Far from assuming Prof. Sushil Bhandari Member that everybody understands what we do, we must regard it as a part of our professional Prof. Biswajit Samanta Member responsibilities to explain our activities and the industry to the public. In its now more than 60 years of existence, MEAI has been steadily endeavoring to gain Dr. Abani Samal Member respect in fostering technical progress and excellence and nurturing professional and ethical Dr. A Srikant Member standards of its members. High professional and public standing and respect are essential to achieving our aims and must work tirelessly towards this. However, in the changing political Dr. SK Wadhawan Member and community environment, the Association must also become active participant in public Immediate Past President Member policy formulation affecting our industry and members. The key to being able to discharge our responsibilities is in ensuring that our Association Editor continues to be treated as the premier professional body in the mineral industry. We must Dr. P.V. Rao attract a high proportion of those eligible for membership as our members. It is particularly important to have a high proportion of the eligible students and young graduates as our (Off. : 040 - 23200510 ) members. The present becomes the past sooner than we like; the leadership of the Association Cell : 96180 91039 will soon be in the hands of today’s students. Greater membership will in turn make it Email: [email protected] easier to achieve this and will enable the Association to speak with enhanced authority. The training and education of young men and women to join the ranks of the professions has PUBLISHER never been more important than now. S. Krishnamurthy Our authority is partly in knowledge, and partly in the number of voices, we are able to Secretary General, muster. The leaders of the Association should speak as often as possible, but we need more Mining Engineers’ Association of India voices: the more the better. Our members to speak up whenever they can, particularly before Mob: 79819 05231 audiences not familiar with the mineral industry. We must not think that our individual voices are insignificant and cannot influence the course of events. Our individual voices, subscription rates provided there are enough of them, will add up to a powerful chorus. Our industry and India Foreign professions have the responsibility to continue being great contributors to the community in the future, as they have been in the past; this is an essential part of our heritage. 1. Subscription for 1 Year Rs. 1000/- US$120 The above text is the modified and abridged version of a presidential address delivered by Sir Arvi Parbo AC Kt at AusIMM’s 1990 Annual conference, which endures its relevance 2. Single Copy Rs. 100/- even after nearly 30 years of its delivery. - Editor Mining Engineers’ Journal, Vol. 21, No. 7 7 February 2020 n News from the Mining World

NEWS From the Mining world ã Cabinet okays Ordinance removing end-use plant or user factories, the rest can be cut down, he said. restrictions in coal mine auctions He also said lease of 334 non-captive mineral mines is The decision taken by the Cabinet Chaired by Prime expiring on March 31, 2020. Of these, 46 mines, mostly Minister Narendra Modi will also do away with end-use in Odisha and , are operational. Of the 46, restrictions of the mining blocks 36 are mines.

In a bid to attract investments and boost domestic coal The country would face a shortfall of 60 million tonnes production, the government on Wednesday approved of iron ore if these mines are shut due to expiry of promulgation of an ordinance to open up coal mining mining lease and the time taken in re-auctioning them, in the country to non-coal companies while removing he said, adding the Cabinet has approved auctioning restrictions on end-use of the fuel. The Union Cabinet them before March 31 as also transferring the current headed by Prime Minister Narendra Modi also gave its forest and environment clearances to the new winner nod for concluding auction of iron ore and other mineral thereby saving 2 years needed in normal course to mines before the expiry of their current mining lease on get those approvals. This, Joshi said, would enable March 31, so as to avoid disruption in production. seamless transfer and no production will be lost.

Briefing reporters, Coal and Mines Minister Prahlad Under the ordinance, allocation of coal/lignite blocks Joshi said the Cabinet has approved promulgation of for composite prospecting license cum mining lease Mineral Laws (Amendment) Ordinance 2020 to amend has been provided; requirement of previous approval Mines and Minerals (Development and Regulation) Act in cases where the allocation of blocks was made by 1957 and Coal Mines (Special Provisions) Act 2015. the central government has been dispensed with, the The ordinance will amend the current proviso in the minister said. law that allows only companies in coal mining to bid for coal mines. "This will speed up the process of implementation of projects, ease of doing business, simplification of Any company meeting the minimum criteria will now be procedure and benefit all the parties in areas where allowed to bid for coal mines, the first auction of which minerals are located," he said. In 2018, the government under the liberalised rules will open within this month, had allowed commercial mining by private entities but Coal Secretary Anil Kumar Jain said. As many as 40 non-coal companies couldn't participate in the auction. coal blocks will be put up for auction in the new round, In August last year, the government announced 100 he said. The move will help create an efficient energy per cent foreign direct investment (FDI) under the market, usher in competition and reduce coal imports, automatic route in coal mining for open sale, besides while also ending the monopoly of state-owned Coal creating associated infrastructure, such as washeries. India Ltd. The move to amend the law will help India gain access India's coal sector was nationalised in 1973. Joshi, to high-end technology for underground mining used however, said Coal India will be "supported and by global miners. Oil and Steel Minister Dharmendra strengthened" and adequate blocks will be allocated Pradhan termed the decision as "a mother reform to it to meet the target of producing 1 billion tonnes of in the coal industry". Commenting on the decision, coal by 2023. Of the 204 coal blocks whose allocation Sajjan Jindal, Chairman and Managing Director JSW was cancelled by the Supreme Court in 2014, only 29 Group, said: "Huge reform announced by the Govt on could be auctioned as some of these mines had end- Commercial mining in Coal. This will go a long way in use restrictions - meaning coal produced from them reducing the Coal Imports which is over $15 billion/ could be used only for the designated captive purpose year. In today's time when the Oil prices are very only and not traded in the market. uncertain, this decision is path breaking in making ndia self-reliant". The opening up of the mining to non-coal companies as well as removing the end-use restriction will pave "Continuity of all Forest and Environment clearances way for the auction of these mines, he said. Joshi said for Iron-Ore mines for a period of 2 years is another India has the world's fourth-largest coal reserves, yet great reform. This was a long pending reform which it imported 235 million tonnes of coal for Rs 1.71 lakh will make the Indian Steel industry more aggressive crore last fiscal. Of these imports, about 100 million and competitive on a global level," he tweeted. "I am tonnes is non-substitutable as they are tied to the power amazed with the pace at which this government is

Mining Engineers’ Journal, Vol. 21, No. 7 8 February 2020 News from the Mining World n

acting on critical economic decisions. I am sure that from the lapsing merchant blocks in Odisha following with this speed of decision making, the economic revival the successful conduct of online auctions. A study by will be much faster than what you and I can think." CRISIL Research illustrates that premium for most of Welcoming the move, CII president Vikram Kirloskar the mines would exceed 40 per cent in a majority of the said the opening up of the coal mining sector without mines put up for auctions. The assumptions are based any end-use restriction will help not only harness coal on the reserve price set by the Odisha government for reserves in India but also help many leading foreign auctions of iron ore blocks. The floor price for almost players establish operations. all blocks save Nuagaon ranges from 15-35 per cent of the sale value of the mineral as estimated by Indian The move will bost both production and mining Bureau of Mines (IBM). For Nuagaon block currently efficiency besides substituting import of coal worth Rs under the leasehold of KJS Ahluwalia, the reserve 30,000 crore, he said. price is pegged at 50 per cent as it contains immense Press Trust of India, New Delhi | January 8, 2020 deposits of 790 million tonnes (mt).

ã 11-member panel to examine issues on royalty The hike in iron ore prices in the aftermath of auctions rates for major minerals will hinge on the auction premiums. Last year, domestic The members of the panel includes mines secretaries prices were half the landed prices, offering the merchant from the states like Telangana, Chhattisgarh, iron ore producers the latitude to raise prices. CRISIL Jharkhand, Karnataka, Madhya Pradesh and Odisha Research estimates that the landed price for a non- integrated steel maker on the eastern coast to be Rs The Centre has decided to set up an 11-member panel 3700-3800 per tonne including royalty, freight and including mines secretaries from various states, to other charges. Non-integrated steel manufacturers examine issues pertaining to the revision of rates of contributed three-fourths to the nationwide steel output royalty for minerals. The members of the panel includes in FY19. mines secretaries from the states like Telangana, Chhattisgarh, Jharkhand, Karnataka, Madhya Pradesh Though bidding for the 20 Odisha mines would be and Odisha. The Mines Ministry has decided to set aggressive, the imminent supply disruption would up an official committee, "for examining the issues be limited as existing miners have been ramping up raised by the stakeholders with regard to revision of production given the upcoming lease expiries, and rates of royalty and dead rent for minerals (other than the auction process that has begun is scheduled coal, lignite, sand for stowing and minor minerals)," the to be completed by end of February. However, the mines ministry said in an order. government’s decision on extension/non-extension of environmental clearances during the transition period The 11-member committee under the Chairmanship will be a key monitorable for any supply disruption. of Mines Additional Secretary will submit the report to the Ministry of Mines after examining the issues raised While 15 of the 20 mines to be auctioned predominantly by stakeholders. "The committee will submit its report have iron ore, three have both iron ore and manganese, within a period of one month from the date of holding while the remaining are primarily manganese reserves. its first meeting," it said. In February, 2018, the mines The 18 mines containing iron ore reserves together ministry had set up a study group to revise the rates of royalty and dead rent for minerals. hold 1600 mt of which 33 per cent (five mines) are reserved for specified end-use (captive usage). All are The study group had submitted its report in July operative mines whose lease tenure ceases by March last year. The Ministry of Mines received comments/ 31, 2020. The report by CRISIL feels that high bidding representations from stakeholders with regard to the in Karnataka has set the precedent for Odisha. Of the revision of rates of royalty. mines auctioned in Karnataka, JSW Steel won half. The weighted average bid premium for the 18 auctioned Press Trust of India, New Delhi | January 13, 2020 mines was 93 per cent with bids ranging from 37 per cent to as high as 130 per cent. ã Iron ore prices are set to rise 30-40% after Odisha auctions: Crisil Jayajit Dash, Bhubaneswar | January 7, 2020 The hike in iron ore prices in the aftermath of auctions will hinge on the auction premiums ã FY20 to witness auctions of most mineral blocks since inception of new MMDR Domestic iron ore prices are set to escalate between 16 blocks already auctioned this fiscal, 43 others 30 and 40 per cent after mining commences again notified

Mining Engineers’ Journal, Vol. 21, No. 7 9 February 2020 n News from the Mining World

Auctions of 59 mineral blocks are set to be completed reserved for end use, the consumption should be limited in FY20, making it the most successful year for online to the plant of the bidder located within the country. auctions since the enactment of the amended Mines Jayajit Dash, Bhubaneswar | December 28, 2019 and Minerals - Development & Regulation (MMDR), 2015. In this fiscal, 16 blocks have already been ã Govt to stop substitutable coal import; can go for auctioned. Notice Inviting Tenders (NITs) have been auction of 100 fully explored new blocks: Joshi issued for 43 others and auction formalities in respect The Cabinet recently approved promulgation of Mineral of these blocks are expected to be completed before Laws (Amendment) Ordinance 2020 to amend Mines the close of FY20. and Minerals (Development and Regulation ) Act 1957 and Coal Mines (Special Provisions) Act 2015. Auctions first took off in 2015-16 after a recast MMDR killed the practice of discretionary allotments and NEW DELHI: Union minister Pralhad Joshi on Sunday mandated award of mineral resources through a said the Centre will stop the "substitutable import" transparent system of auctions. Auctions were slow of coal in the next three to four years and can go for to start with only six blocks offered in the inaugural auction of 100 fully explored blocks. The statement year. Between 2015-16 and 2018-19, 54 blocks were assumes significance in view of recent developments auctioned online. in the sector where the government recently brought an ordinance to amend laws to open up coal mining to “In this fiscal, the tempo of auctions has accelerated as firms other than those in the steel and power sectors, tenure of all merchant mining leases ends by March 31, removing restrictions on end-use of the fuel. Terming 2020. These mines have to be readied for production the promulgation of the ordinance as "one of the major again before their validity ends. The government is reforms", the coal minister in an interview to said that working on environment clearance, forestry clearance "whatever the substitutable shortfall is there...we want and an array of other approvals to ensure seamless to achieve it in the coming three-four years. That may transfer of ownership and continuity in operations," be around 2023-24. We want to stop the substitutable said an official with a standalone mining company. import of the coal".

Since the promulgation of MMDR Act 2015 and The Cabinet recently approved promulgation of Mineral framing of Mineral Auction Rules, 70 mineral blocks Laws (Amendment) Ordinance 2020 to amend Mines have been auctioned. The combined revenue to states and Minerals (Development and Regulation ) Act from auctions of these blocks over the lease period 1957 and Coal Mines (Special Provisions) Act 2015. spanning 50 years has been estimated at Rs 2.02 "In between also there were some other problems. trillion, inclusive of royalty and contributions to the CMSP Act, end-user restriction. So many things were District Mineral Foundation (DMF) and National Mineral there. All these things we have removed now," the Exploration Trust (NMET). In Odisha, the process of minister explained. Stating that promulgation of the online auctions of 20 merchant leases- a mix of iron Ordinance has been welcomed by the sector, he said ore and manganese has taken off. the government is seeking comments on draft rules for coal mines auction which is in the public domain. The deadline for bid submission is January 3, 2020. The conduct of ascending forward electronic auctions and "Now question is about framing rules and that we have submission of final price offer on the auction platform kept it in public domain...We want to make it investor will be done between January 31 and February 21, friendly... After this formation of rules and after all these 2020 while the Letter of Intent (LoI) is to be issued things, we want to market in a such way in the world from February 10 to February 29, 2020. The state that now things have become easy...you come and government has inserted some additional conditions in do the business," the minister added. "I can say today the tenders for the expiring merchant mine leases. as on date around 100 new greenfield blocks fully explored coal blocks are with us. Fully explored blocks A successful bidder after obtaining all statutory 100 greenfield blocks are with us now. That we can go clearances needs to produce in the first two years at for auction immediately," the minister said adding that least 80 per cent of what the mine actually produced the sale of the blocks will be in a phased manner. in the preceding two years. This clause will be inserted in the Mine Development and Production Agreement When asked about the number of blocks that would (MDPA). Failure to achieve this production benchmark go under the hammer in the first phase, he said, "That will debar the successful bidder from participating in I can't say right now as that is yet to be discussed, future auctions for three years. And, in case of blocks deliberated."

Mining Engineers’ Journal, Vol. 21, No. 7 10 February 2020 News from the Mining World n

According to industry thinkers, the recent move in the and frequent expenditure on replacements,” he said in coal sector is likely to create an efficient energy market an interview. A 2016 study by the National Association and bring in more competition as well as reduce coal of Corrosion Engineers estimates corrosion cost imports. India $70 billion, which could have been avoided had structures been coated with zinc. However, the move will put an end to Coal India's monopoly in the sector. India’s railway ministry expects to buy about 1.5 million tons of tracks in the year ending March. Indian Allaying the fears in this regard, the minister said, "We Railways, the monopoly operator, has about 18 million are pushing and trying to strengthen Coal India so that tons of steel assets including rail lines and material they achieve their target (one billion tonnes) by 2023- for sheds and stations, which Duggal says should be 24...We want that Coal India should do its job, do its job protected from corrosion “to ensure its longevity and well...Remaining whatever is the gap of 400-500 million sustainability.” tonnes that will be taken care of by private people." Coal India accounts for over 80 per cent of domestic Replacement Expenditure coal output. India imported 235.2 million tonnes of Demand for primary zinc in the South Asian nation coal in 2018-19 valued at Rs 1.7 lakh crore, Joshi had depends largely on the growth of the steel market as earlier said. it accounts for 70% of the total consumption. India’s PTI | Jan 19, 2020 per capita consumption of zinc is only 30% of the world average of 2 kilogram per person, the Australian ã Asia’s most valuable Zinc maker looks to gain from government said in a quarterly report. India’s rail overhaul Asia’s top zinc producer by market capitalization has “Growth in zinc consumption is fundamentally to be been campaigning for Indian Railways to increase their supported by the issues of rust and corrosion in steel,” use of galvanized steel in its rail lines, although the said Urvisha Jagasheth, an analyst at Care Ratings material is also used in industries from construction to Ltd. “In the long run, galvanizing would definitely be cars. India’s railway ministry expects to buy about 1.5 beneficial, outweighing the costs, and cost efficiencies million tons of tracks in the year ending March. would be realized because the corrosion and rust would be minimized.” Hindustan Zinc’s output was 696,000 A push to modernize Asia’s oldest railway network tons in the year ended March 31. India’s consumption could help spur demand for zinc, according to India’s may rise more than 3% to about 795,000 tons this sole producer. Prime Minister Narendra Modi has financial year, according to Care, accounting for about outlined a plan to spend about $1.5 trillion to upgrade 5% of global demand. and build infrastructure over the next five years to Bloomberg | Jan 17, 2020 shore up economic growth, boosting the outlook for zinc, used to galvanize steel and prevent corrosion. ã Global green tech revolution at risk, India can play There are early signs of a possible pick up -- Indian role in reforming mining practices: Experts Railways is setting targets to lay zinc-coated rails and Researchers, including Salim H. Ali from the University has fitted stations with galvanized roofs to replace of Delaware, published a study recently to discuss how asbestos sheets, according to Hindustan Zinc Ltd. the global revolution to develop green, or low-carbon Chief Executive Officer Sunil Duggal. technology, could be at risk unless new international agreements are put in place to ensure a sustainable Asia’s top zinc producer by market capitalization has supply of rare minerals and metals. been campaigning for Indian Railways to increase their use of galvanized steel in its rail lines, although the NEW DELHI: Green technology comes at a price and material is also used in industries from construction to India can play a pivotal role in breaking the "green cars. The country produces about 100 million tons of curse" by persuading South Asian countries to adopt steel every year, but less than 10% of it is coated with sustainable practices in mining critical minerals needed zinc, resulting in corrosion-related costs amounting for solar power devices and the like, say experts. to about 4% to 5% of India’s gross domestic product Researchers, including Salim H. Ali from the University every year, Duggal said. of Delaware, published a study recently to discuss how the global revolution to develop green, or low-carbon “Galvanization is like an investment that not only technology, could be at risk unless new international enhances the life of infrastructure and provides safety agreements are put in place to ensure a sustainable but also adds to the GDP of country by reducing scrap supply of rare minerals and metals.

Mining Engineers’ Journal, Vol. 21, No. 7 11 February 2020 n News from the Mining World

"Many countries are now stricken with the 'green environmentally friendly mining governance across the curse'," Ali, an environment and energy researcher, world, especially in low- and middle-income countries. told PTI in a telephonic interview. "Green curse" refers Given the centrality of metals and minerals in low- to a situation when a country's increased investment carbon technology, India can help shape the important in renewable energy, such as solar and wind power, discussion on the need for materials security policies generates a new set of resource and energy-related to be actively incorporated in future climate planning violent conflicts, he said. The study, published in the meets, he said. journal Science, explained it further. "Climate goals and targets of countries must include "Mining for copper, needed for electric wires and circuits elaborate policies on how these minerals are mined. and thin-film solar cells, and mining for lithium used Separate protocols on material supply for green in batteries, has been criticised in Chile for depleting technology, including their environmental, social, local groundwater resources across the Atacama economic outcomes must be drafted," Ali said. Desert, destroying fragile ecosystems, and converting According to Ali, current mining operations in India meadows and lagoons into salt flats," the researchers are largely domestic, and mostly involve extraction of wrote, citing an example. "Metals and minerals are energy-minerals including coal, oil, and natural gas needed for low-carbon transition. But the current by Indian players like Vedanta Resources Limited and methods used for extracting them are dangerous and Adani Group. damaging to both the environment and surrounding communities," study co-author Benjamin Sovacool As a result, mining in India is not getting enough from the University of Sussex in the UK told PTI. foreign attention, he said. "Strategic foreign investment is needed on non-energy minerals to improve India's According to Ali, countries like India should look at mining contribution. India needs to move away from more sustainable mining models. "Mining is still done energy-based minerals and needs to extensively using old outdated models in many low- and middle- map non-energy ores across the states," Ali said. income countries," he added. China dominates the global mineral supply chain since it played a pivotal role in extensively mapping In his view, India is well positioned to drive policies and its abundance of rare-earth elements (REEs) but its new conversations as the leader of the International mining practices are environmentally damaging and Solar Alliance (ISA), a coalition of 121 countries initiated need to be revamped, he said. REEs like neodymium by India in 2015 to work for efficient exploitation of solar and dysprosium are needed for magnets in electric energy to reduce dependence on fossil fuels. generators and wind turbines, and motors in EVs. The demand for materials and metals used to build low-carbon technology may grow immensely in "Better coordination between foreign investment, the next few decades, the study noted. "We are not local artisanal miners, and domestic companies in a creating a negative outlook, but stating that there is strategic public-private partnership can benefit India," an opportunity for making mining for these minerals Ali said. "If the reserves are relatively small, small more responsible. The projected increase in demand scale mining can be an efficient investment, increasing could be potential good news for a country like India labour opportunities," he added. In the Science study, but it should be handled with care," Ali explained. the researchers also recommended that countries According to scientists, the amount of cobalt, copper, expand the recycling and reuse of rare minerals to lithium, cadmium, and rare earth elements needed extend product lifetimes. for low-carbon technologies like solar photovoltaic cells, electric vehicle (EV) motors and batteries, wind "As the global energy landscape changes, it is turbines, and nuclear reactors will grow at a rapid pace becoming more mineral and metal intensive," Morgan in the upcoming years. Bazillian, study co-author from the Colorado School of Mines in the US, said in a statement. "Thus, the Materials used in electric vehicles (EVs), for instance, sustainability and security of material supply chains is may grow in demand by 87,000 per cent, 1,000 per essential to supporting the energy transition. How we cent for wind power, and 3,000 per cent for solar cells shape that pathway will have important consequences from 2015 to 2060. While this projected increase could for everything from the environment, to development, be good news for countries rich in mineral and metal and geopolitics," Bazillian added. wealth, Ali said the need of the hour is to establish PTI | Jan 14, 2020

Mining Engineers’ Journal, Vol. 21, No. 7 12 February 2020 OBITUARY

Shri P.C. Modani 12.01.1946 - 25.12.2019

Shri P.C.Modani (LM.NO: 3403/Jaipur) did his BE (Mining) in the year 1967 from Jodhpur University, MBM Engineering College.

He started his career with Coal Mines and later came to Rajasthan and managed Silica Sand Mines. From December 1975 until superannuation in January 2004, heading Mining Operations, he worked with Fertilizer Corporation of India (Gypsum Mining Division). He held FCC both in Coal & Metal. He was General Manager with Diamond and Gem Development Corporation Ltd. at Jaipur. Shri Modani was amongst the founder members of the Jaipur chapter.

The members of MEAI condole his sad demise and convey their profound condolences to the members of his family.

OBITUARY

Shri Dinesh Kumar Dwivedi 15-01-2020

Shri Dinesh Kumar Dwivedi (LM.NO: 697/Ahmedabad) was former Secretary and Vice Chairman of Ahmedabad Chapter.

The members of MEAI condole his sad demise and convey their profound condolences to the members of his family.

Mining Engineers’ Journal, Vol. 21, No. 7 13 February 2020 M/s P.BALASUBBA SETTY & SON Group of Units

M/s PBS & SON Mines – M.L.No.2502 PBS GRAND - HOTEL - HOSAPETE KARIGANUR - HOSAPETE

M/s PBS STEEL – 250 TPD - Sponge Iron Plant M/s PBS POWER – (03 Nos) WIND MILL Halavarthy Village – Ginigera – Dist. Ron Taluk – Gadag Dist.

Corporate Office Address: M/s P.BALASUBBA SETTY & SON, D.No. 2078, P.B.No.03, 22nd Ward, J.P.Nagar, Ballri Road, HOSAPETE - 583201, Ballari District, Karnataka State. Tel: 08394 - 265595, E-mail: [email protected]

Mining Engineers’ Journal, Vol. 21, No. 7 14 February 2020 With Best Compliments from BKG B.RudraGOUDA BKG MINE M.L.No. 2516 Systematic, Scientific & Eco Friendly Mining

BKG M Sand and aggregates pvt ltd, "Our Quality M Sand & Aggregates for your Dream & Durable Constructions"

Head Office Address: Branch Office: Works At: BKG M Sand and Aggregates Pvt Ltd VV Sangha Complex, Shop No. 8, Sy. No. 240, #2198, BKG House KHB Colony, Opp: Chiranjeevi Hospital, Near Kalingeri Village, Sandur - 583 119. Ph.: 08395 252139 100 Beds Hospital Road, Hospet - 583 202 Kalingeri, Sandur (Tq). For more information, Please Contact: 94483 95406, 94483 95559, 96060 73155 & 94808 52406 BKG Group No. 2198, BKG House, K.H.B. Colony, Sandur - 583119, Bellary Dist. Off.Ph: 08395-252139, Fax: 260471

Mining Engineers’ Journal, Vol. 21, No. 7 15 February 2020 n Technical Article

Position Paper on atn Ideal Mineral Concession System for India Ankan Mitra1, Devraj Tiwari2, Pankaj Satija3 Abstract: Over the last few years, the Govt of India has taken some important steps for removing stagnation in the mineral sector and ensuring its development for achieving the national policy goals. A major step in this direction was the enactment of the MMDR (Amendment) Act 2015 which made the process of allocation of mineral concession transparent by introducing mineral auctions.

This transparency in allocation of mineral concession was meant to pave the way for “ease of doing business” in the mining sector but the basic objective of increasing the mineral production in the country can only be achieved when the “cost of doing business” in mining is optimised and the delays in grant of clearances and the approvals are also taken care of. Moreover, domestic value addition, needs to be prioritised in a manner such that it is not only able to compete with the global players in terms of quality but also demonstrate effective cost leadership. The latter aspect can only come from assured supplies of raw materials at competitive rates. This paper tries to explore some possible modifications that can be done in the current system to make it more robust and purposeful.

Keywords: Resource, industry, GDP, mineral concessions, raw materials, mineral auctions

Background exception to this trend. Due to the raging debates triggered India is blessed with a bounty of resources, ranging from by claims and counter claims on lack of transparency in minerals to water and land. To top it all up, we also have grant of mineral concessions and increase in litigations on human resources to harness the aforesaid gifts of nature the issue, the matter was analysed by the Hoda Committee and leverage these to transform India from a developing to established by the Planning Commission, Govt of India in a truly developed Nation. From the economic perspective, 2005, to suggest policy changes for the Mineral Sector in India is ideally positioned to climb up the development India to attract more private investment in the Sector. This ladder, as it has the raw materials to support industry and Committee suggested measures to fine tune the prevalent manufacturing, it has a fair share of skilled manpower to process with a Committee approach to broad base decisions run the industry and has huge markets and infrastructure and make it more objective and transparent. It came up with development requirements to consume the output. Therefore, the concept of creating Single Window Coordination cum with the aforesaid setting, the Govt of India needs to tailor Empowered Committees at the Centre and States to deal its policies in a correct manner to achieve the desired goal with applications for mineral concessions. as these policies need to effectively promote domestic manufacturing in order to facilitate the long-standing target of Later, when the scams pertaining to allocation of 2G ensuring a GDP contribution of 25% from the Manufacturing Spectrum and Coal Blocks began surfacing the Govt of India Sector. While the “Make in India” programme was a right constituted the Ashok Chawla Committee on Allocation of step in this direction, the magic figure of 25% still seems to Natural Resources (CANR) vide Cabinet Secretariat Office be a distant reality as manufacturing contribution still lurks Memorandum (OM) dated January 31, 2011 to deliberate on around 16% of the GDP. One of the primary reasons for this measures required for enhancing transparency, effectiveness is the lack of security in availability of raw materials (mainly and sustainability in utilization of natural resources. The ores and minerals) at competitive prices for the domestic Committee was entrusted with the mandate of identifying manufacturing industry. key natural resources being allocated by Government; examining the efficacy and suitability of existing legal and Allocation of Natural Resources regulatory framework and rules being employed in the Most resource rich Nations allocate these resources based allocative processes; make recommendations for enhancing on First Come First Serve basis and India too was no the sustainability, transparency and effectiveness of the

Authors 1. Mr. Ankan Mitra, Head, Regulatory Affairs 2. Mr. Devraj Tiwari, Senior Manager, Regulatory Affairs 3. Mr. Pankaj Satija, Chief Regulatory Affairs, Tata Steel Ltd.

Mining Engineers’ Journal, Vol. 21, No. 7 16 February 2020 Technical Article n

allocative processes; and, finally to suggest changes in the would not interfere with the executive’s prerogative to select legal, institutional and regulatory framework to implement the means for distribution of natural resources unless it was the above recommendations. The recommendations of this found to fail the twin tests of “fairness and non-arbitrariness” Committee on Mineral Concessions were largely swayed by in the light of Article 14 of the Constitution. the fact that the Ministry of Mines, Govt of India had already initiated stakeholder consultation on a Draft MMDR Act in Thus, after a conjoint reading of the recommendations of 2010 itself and this draft had already proposed introduction the Hoda Committee, the Ashok Chawla Committee and of auctions for grant of mineral concessions. The Committee the Supreme Court Order on the Presidential Reference, advised that GSI should complete its geophysical and it can be conclusively inferred that Auction is not the only geochemical mapping expeditiously, with the assistance of way for allocation of natural resources and neither it is a outsourcing and service contracts if necessary, to develop constitutional mandate to auction natural resources for potential areas for prospecting, so that such prospects can revenue maximisation as the underlying principle for then be competitively awarded, as provided in the draft allocation of these resources remained the motive of sub legislation. serving the ‘common good’.

When the Hon’ble Supreme Court delivered a Judgement in Critical Appraisal of the Mineral Concession Auction the 2G Spectrum Allocation Case in 2012, it recommended Regime an auction process for allocation of the cancelled licenses In spite of the clear mandate that Auction is not the sole and made a passing remark for considering auction and method for allocation of natural resources, the Govt of India bidding as the preferred method for allocation of natural introduced Auction and Bidding as the preferred mode resources to bring in transparency in allocation processes. of allocation of mineral concession through the MMDR Seized of the wide-ranging implications of these comments, Amendment Act 2015.This move was attributed to the need the Govt of India re-approached the Hon’ble Court with a for eliminating discretion in the grant of mineral resources Presidential Reference to seek clarity on whether Auction would be the only process for granting concessions for in order to usher in an era of transparency. But, the actual Natural Resources in the country. On this, a Five Judge motive seemed different as the Govt chose to introduce a Constitution Bench of the Supreme Court categorically said system of 2 step ascending forward auction, which fuelled that auction could not be the sole method for allocation of aggressive bidding by the raw material starved mineral natural resources. The Judgment clarified that auction could end use sector, and led to astronomical bid commitments be only among several methods for distribution of natural coupled with the issue of no calendar plan of auctions. The resources, and that it was for the government to choose the Govt too exuberated euphoria over the anticipated revenue mode that best served the “common good”. It said the court collections over the life of mine for the auctioned properties,

Mining Engineers’ Journal, Vol. 21, No. 7 17 February 2020 n Technical Article

thereby clearly displaying that ‘revenue maximisation’ auctioned blocks has been pegged at a staggering 81% was the real intent behind introducing auction of mineral of the value of estimated resources in the deposits. When concessions. one factors in the cost of production and the normal level of corporate taxation, there would hardly be any margin for an The table below compiled by the Ministry of Mines clearly investor. depicts that the level of revenue generation from the

State-wise auction summary and total tax burden since 2015 State-wise Auction summary

States Rajasthan (8) Odisha (5) MP (6) Chhattisgarh (5) Karnataka (18) 3 Iron-ore, 3 Limestone, 1 Limestone, 1 Graphite, 4 limestone, Mineral 8 Limestone 1 18 Iron ore 1 Iron Ore, 1 Gold Manganese 1 Diamond Ore Estimated value of the resources 55,109.51 41,781.84 3,624.59 26,937.32 65,053.49 (in cr) Additional contribution through 24,544.10 24,922.75 3,621.21 22,164.61 62,925.28 auction (in cr) Royalty (in cr) 9,897.47 6,074.15 576.25 4,489.94 9,758.02

DMF (in cr) 989.75 607.41 57.62 448.99 975.80

NMET (in cr) 197.95 121.48 11.52 89.80 195.16 Total of Royalty + DMF + NMET 11,085.16 6803.04 645.40 5,028.74 10,928.99 (Statutory payments) (in cr) Total revenue to the Govt over 50 35,629.27 31,725.80 4,266.60 27,193.35 73,854.26 years (in cr) % Tax burden 65% 76% 118% 101% 114%

State-wise Auction summary Andhra States Jharkhand (7) Gujarat (3) Total Pradesh (5) (13) 6 Bauxite, 2 Limestone, 2 Limestone, 2 Gold, 4 Limestone, Mineral 3 Limestone 2 Manganese, 70 2 Graphite, 1 Gold 2 Copper, 1 Iron ore 1 Iron Ore Estimated value of the resources 8,217.19 7,947.32 3,5276.91 8,567.72 2,52,515.90 (in cr) Additional contribution through auction 4, 755.53 1,597.31 9,468.79 3,562.78 1,57,562.36 (in cr) Royalty (in cr) 785.42 1,135.77 6,012.00 1,059.94 3,9788.95

DMF (in cr) 78.54 113.58 601.20 105.99 3,978.89

Mining Engineers’ Journal, Vol. 21, No. 7 18 February 2020 Technical Article n

NMET (in cr) 15.71 22.72 120.24 21.20 795.78 Total of Royalty + DMF + NMET 879.67 1,272.06 6,733.44 1,187.13 44,563.62 (Statutory payments) (in cr) Total revenue to the Govt over 50 5,635.21 2,869.37 16,202.23 4,749.90 2,02,125.99 years (in cr) Total tax burden (% of value of 69% 36% 46% 55% 80% resources) Source: Ministry of mines

Effective Tax Rate (ETR): the combined impact of all taxes

Moreover, while the ambient level of effective taxation on mining hovers around 40-45% for most of the mineral rich countries, the same for India at current rate works out to be more than 54% after implementation of DMF and NMET levies. With the introduction of auction as the only method of granting mineral concessions to the private sector, the burden of regulatory cost further increases as hefty auction commitment is payable over and above all the current taxes and levies.

Total tax burden on private players accounting for auction premium Particulars of different levies Lowest bid Average bid Highest bid Auction Premium quoted on base price 36.67% 85% 275% Royalty @15% revenue 15.00% 15% 15% DMF @10% of royalty 1.5% 1.5% 1.5% NMET @2% of royalty 0.3% 0.3% 0.3% Amortized upfront payment 0.5% 0.5% 0.5% Amortized performance security 0.5% 0.5% 0.5% GST on royalty 2.7% 2.7% 2.7% Total tax 57.17% 105.5% 295% Source: INGEMMET

Mining Engineers’ Journal, Vol. 21, No. 7 19 February 2020 n Technical Article

Royalty & Taxation Scenario post Auctions: Case Study - Iron Ore

For the blocks being acquired through auction, the regulatory bid is reproduced below for reference while an exhaustive cost kitty further swells up disproportionately due the auction compilation all leases auctioned thus far is annexed herewith commitment. For the sample cases captured graphically as Annexure 1. This would not only put undue financial above, the successful bidders for captive iron ore blocks stress on the industry but also ultimately result in the end would end up paying more than the current market prices use product becoming more expensive for the consumer, of the ore and the total taxation would go up exponentially when compared to the past scenario. A compilation of some which therefore defeats the basic premise of achieving of the leases allotted through auction along with the highest ‘common good’.

Sr. No. Block, State Mineral Auction date Highest bid* Preferred bidder

1. Dulsulma, Palamu, Jharkhand Graphite 01.03.2019 149.20% Team Geo Resources Pvt Ltd

Kalamang West (Northern Part), 2. Iron ore 18.05.2017 100.05% Bhushan Steel Ltd Sundergarh, Odisha

3. Karadikolla, Bellary, Karnataka Iron ore 03.10.2016 100.30% MSPL Ltd.

Swamimalai range, 4. Iron ore 05.10.2016 111.10% MSPL Ltd. Bellary, Karnataka Malgolla, 5. Iron ore 05.10.2016 100.10% JSW Ltd. Bellary, Karnataka

6. Sandur, Bellary, Karnataka Iron ore 06.10.2016 102.52% JSW Ltd.

7. ML No. 2148, Karnataka Iron ore 06.09.2018 129.90% MSPL Ltd.

Mining Engineers’ Journal, Vol. 21, No. 7 20 February 2020 Technical Article n

8. ML No 2563, Karnataka Iron ore 05.09.2018 111.00% MSPL Ltd.

9. ML No. 1602, Karnataka Iron ore 25.07.2019 102.70% JSW Steel Limited

Humdara- 10. Bauxite 08.05.2019 115.20% Gamma Iron India Limited Ghodepaiwadi, Maharashtra

MMDR Amendment Act 2015 and Sustainability of Recommendations Mining As seen from the recommendations of the various While the amendment of the MMDR Act in 2015 is viewed Committees and the Clarification from the Hon’ble Supreme as a path breaking change primarily due to the introduction Court, Auction is neither a Constitutional mandate nor the of Auction, what crept in unnoticed with this changeover in most appropriate method for allocation of concessions the methodology of grant was the tweaking in the tenure for Natural Resources as maximising revenue may not of mining leases and the change in the system of seeking necessarily serve the ‘common good’. This is precisely evident relaxation in the maximum area holding limit prescribed at this point of time, as even after lapse of 4 years after the under Sec 6 of the Act. It may be appreciated that along with introduction of the Auction Regime, no large mine granted the methodology of grant, the tenure and area limit forms the through auction has been able to commence production. triumvirate of pillars on which rests the sustainability of the Out of nearly 100 attempts made by the State Govts, only mining operations in a leasehold as it not only determines 53 mines have been auctioned till date and a mere 3 small the scale and economic viability but also indicates the extent mines have been able to commence production. Moreover, to which scientific mining is possible without compromising the other concerns related to the tenure and area holding on the mineral conservation and utilisation of the leaner limit also needs to be addressed effectively to revive the grades. mining sector to really feed into the Make in India initiative as envisaged in the National Mineral Policy 2019. A few While the provisions of the original Act provided for periodic suggestions for achieving the above motive are as follows: renewal of the mining leases, subject to a host of conditions, 1. While the ideal situation would be to revert back to a the amended Act introduced a hard stop in the tenure on the system of empowering the ‘exploration horse’ to pull expiry of 50 years irrespective of the availability of mineral the ‘chariot of mining’ by allowing seamless transition in the deposit. While the provision of renewal of leases of mining concessions from Reconnaissance Permit to encourages scientific and sustainable mining by imbibing Prospecting License to Mining Lease, without indulging the concept of resource stewardship, a fixed tenure with no in the speculative process of auction, the Govt may opt provision of renewal virtually empowers the concessionaire for continuing with the Auction Process albeit with a to indulge in cherry picking of the richer grades by adopting modification in the system of auction from the currently unscientific and unsustainable mining which may result in adopted 2 step ascending forward auction to a more total loss of the leaner grades. logical single step e-tender (similar to the one adopted under the Insolvency and Bankruptcy Code) to mitigate Similarly, the area holding restriction of 10 Sq. Km for the problems arising out of aggressive bidding which a group of associated minerals for a State and the need finally leads to unviable offers and ultimately results in for an exemption from the Central Govt, was a process non- opening of mines even after auctions. which may have been necessary to discourage hoarding 2. While transparency in grant of mineral concessions under a discretionary and non-transparent regime. But with is welcome, the fact that the auction policy aims at the overhaul in the entire mechanism of grant of mineral single tenure concessions with provision of re-auction concessions, this system of seeking exemption seems to after expiry of lease period is anti-resource efficiency be a redundant process which only increases the chances as a lessee with a limited tenure would be interested of introducing discretionary powers. Thus, the new process only in selective mining to maximise the returns with introduced by the amended Act, of seeking umbrella no sense of resource stewardship. Therefore, in the exemption by the States for each mineral, re-introduces interest of sustainable and scientific mining, security discretion as different States may recommend different of tenure and single-handed mining of a resource by area holding limits for minerals and the Centre may also a lessee should be promoted through effective policy approve the same by modifying the recommendations using change after reviewing the current system of auction. A discretionary powers, which is against the essence of the system of extension of leases till life of mine should be very amendment, as it was done to eliminate the needs reintroduced in the interest of mineral conservation and for exercising discretion in the entire mineral concession maximisation of utilisation of lower grades available in process. To address the issue, the Govt needs to consider the mineral deposits through effective blending. This the following options. would also aid the integrated domestic manufacturing

Mining Engineers’ Journal, Vol. 21, No. 7 21 February 2020 n Technical Article

sector investing in captive mining as an effective plan to propel India’s growth and truly transform India from a can be developed for consuming all grades available in developing economy to a truly developed Nation. the deposit over the entire life of the mine in a phased manner aimed at maximising utilisation of the lower Disclaimer grades. The views expressed in this paper are those of authors and not necessarily those of the Company they are associated 3. The area holding limit criteria should either be removed with. The Company do not endorse any of the views stated, from the Act as it is redundant in the current ‘transparent nor any claims or representations made in this paper and and non-discretionary’ regime or the Act should set the accept no responsibility or liability to any person for loss or limit at an optimal level of around 100 Sq. Km which damage suffered because of their placing reliance upon any would not necessitate the exercise of discretion by view, claim or representation made in this paper. either the State or the Centre for ordinary cases. The information and expressions of opinion contained in this Thus, overall, the mineral concession system in India, paper are not intended to be a comprehensive study, nor to deserves a serious relook, in order to revive the mining provide actuarial advice or advice of any nature and should sector which would in turn fuel the manufacturing sector not be treated as a substitute for specific judgement.

Annexure 1

Successful Auction Details

Auction Name of for ML/ E- auction Quote Name of the Block Area Reserves Date of NIT Bid parameters Cumulative revenue Status

Sl No Mineral PL cum date received States ML

reserve price 5 % of the value cumulative revenue to state government for period of 50 Gudipadu limestone 26.66 MT of 45.3 Preferred Bidder- 1 Limestone 40.82 ha ML 14.01.2016 08.06.2016 of mineral dispatch with highest years- 345 crore, inclusive of 106 Cr additional contribu- block CaO grade penna cements Andhra

Pradesh bid - 8.12 % tion through auction.

reserve price 10 % of the value cumulative revenue to state government for period of Preferred Bidder- Erragudi- Hussain- 131.568 2 Limestone 9.03 MT ML 17.07.2017 26.09.2017 of mineral dispatch with highest 3 50 years-125.84 crore, inclusive of 44.93 Cr additional Sree JayajothiCe- apuram–Yanakandla Ha Andhra Pradesh bid - 10.60 % contribution throughauction. ments Pvt Ltd

reserve price 10 % of the value cumulative revenue to state government for period of 50 Preferred Bidder- Nandavaram–Venkat- 24.739 3 Limestone 1.66 MT ML 17.07.2017 26.09.2017 of mineral dispatch with highest 3 years-23.21 crore, inclusive of 8.34 Cr additional contri- Sree JayajothiCe- apuram Ha Andhra Pradesh bid - 10.70 % bution throughauction. ments Pvt Ltd

1.831 Million reserve price 10 % of the value cumulative revenue to state government for period of 50 Chigargunta – 262.01 Preferred Bidder- 4 Gold Tonnes@ 5.15 g/ ML 23.04.2018 27.07.2018 of mineral dispatch with highest years- 1058.05 crore, inclusive of 947.12 Cr additional Bisanatham Ha NMDC Limited Andhra

Pradesh t=9,429,650 gm bid - 38.25 % contribution through auction.

Chintalayapalle- Ab- cumulative revenue to state government for period of 50 Preferred Bidder- 417.51 5 dullapuram- Koruma- Limestone 92.24 MT ML 20.08.2018 28.11.2018 highest bid - 13.40 % years- 1317.32 crore, inclusive of 490.85 Cr additional Adani Cementation Ha Andhra

Pradesh nipalli (CAK) contribution through auction. Ltd

- 0.9 MT by reserve price 1% of the value of cumulative revenue to state government for period of Baghmara, Balodaba- 607.94 PL cum Preferred Bidder- 6 Gold DGM,1.8 MT 08.12.2015 26.02.2016 mineral dispatch with highest 4 50 years-110.45 crore, inclusive of 81.4 Cr additional zar- Bhatapara ha ML Vedanta Ltd. Chhat tisgarh by GSI bid - 12.55% contribution throughauction.

- reserve price 5% of the value cumulative revenue to state government for period of Preferred Bidder- 7 Kesla, Raipur Limestone 108 ha 67 MT ML 08.12.2015 19.02.2016 of mineral diapstch highest bid 3 50 years-887.2 crore, inclusive of 313.8 Cr additional Century cement Chhat tisgarh - 10.15% contribution throughauction.

- reserve price 5% of the value cumulative revenue to state government for period of 50 Karhi Chandi, Baloda- 242.127 Preferred Bidder- 8 Limestone 155 MT ML 08.12.2015 18.02.2016 of mineral dispatch highest bid 5 years- 5802.1 crore, inclusive of 4413.3 Cr additional bazar- Bhatapara ha Shree cement Chhat tisgarh - 58.95% contribution through auction.

- reserve price 5% of the value cumulative revenue to state government for period of Preferred bidder- 357.067 9 Kesla- II, Raipur Limestone 215 MT ML 21.02.2017 01.05.2017 of mineral dispatch highest bid 4 50 years- 11,894 crore, inclusive of 9,968 Cr additional Dalmia (Bharat) ha Chhat tisgarh - 96.15% contribution through auction. Cement

- Guma block, Tehsil cumulative revenue to state government for period of 249.03 Preferred Bidder- 10 Palari, District Baloda Limestone 124 MT ML 02.01.2018 12.03.2018 highest bid - 138.25% 50 years- 8,499.67 crore, inclusive of 7,388.63 Cr ad- ha Ultratech Cement Chhat tisgarh Bazar - Bhatapara ditional contribution through auction.

reserve price 10% of the value cumulative revenue to state government for period of 50 Preferred Bidder- Harihaspura Block I, PL cum 11 Limestone 180 ha 0.42 MT 07.12.2015 12.02.2016 of minreal dispstch, E- auction 3 years-6.89 crore, inclusive of 3.09 Cr additional contri- Burnpur Cement Ramgarh ML highest bid- 12% bution throughauction. plant Jharkhand

reserve price 10% of the value cumulative revenue to state government for period of 50 Preferred Bidder- Harihaspura Block II, PL cum 12 Limestone 379 ha 0.67 MT 07.12.2015 12.02.2016 of minreal dispstch, E- auction 3 years-10.9 crore, inclusive of 4.89 Cr additional contri- Burnpur Cement Ramgarh ML highest bid- 12% bution throughauction. plant Jharkhand

reserve price 10% of the value Cummulative revenue over the period of 50 years is Rs Pahadia Gold Block, 279.609 1.162 MT @2.12 PL cum Preferred Bidder- 13 Gold 08.08.2016 26.10.2016 of mineral dispatch highest bid- 5 192 crore with an additional contribution of Rs 179 crores Singhbum West Ha grm/ton ML Maithan Ispat Ltd. 28.1 % through auction. Jharkhand

Mining Engineers’ Journal, Vol. 21, No. 7 22 February 2020 Technical Article n

Parasi Gold and reserve price 10% of the value Cumulative revenue over the period of 50 years is Rs Associated Minerals, Preferred Bidder- 14 Gold 69.24 Ha 10,438,170 gram ML 21.08.2017 01.11.2017 of mineral dispatch highest 2 655.74 crore with an additional contribution of Rs 518.98 Tamar Block, Dist. Rungta Mines Ltd. bid- 17% crores through auction. Jharkhand Ranchi

Bhangaon Iron Reserve price 10% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 15 Ore Block, West Iron ore 118 Ha 38.25 MT ML 05.01.2018 28.06.2018 of mineral dispatch. Highest 4494.15 crore with an additional contribution of Rs South West Mining Singhbhum bid- 89% 3780.52 crores through auction. Ltd Jharkhand

Reserve price 10% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bid- 94.521 16 Lesliganj, Palamu Graphite 0.6689 MT ML 24.05.2018 01.08.2018 of mineral dispatch. Highest 3 51.70 crore with an additional contribution of Rs49.83 der- Team Geo Ha bid- 75% crores through auction. Resources Pvt Ltd Jharkhand

Reserve price 15% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bid- 17 Dulsulma, Palamu Graphite 36.29 Ha 1.48 MT ML 25.12.2018 01.03.2019 of mineral dispatch. Highest 4 223.47 crore with an additional contribution of Rs 219.33 der- Team Geo bid- 149.20% crores through auction. Resources Pvt Ltd Jharkhand

reserve price 5% of the value of Cummulative revenue over the period of 50 years is Rs Preferred Bidder- Kottameta , Mal- 801.171 98.69 million 18 Limestone ML 26.10.2016 27.12.2016 mineral dispatch highest bid- 3 1455 crore with an additional contribution of Rs 571 Dalmia Cements kangiri Ha. tonnes Odisha 12.05 % crores through auction. (Bharat) 11.16 million reserve price 5% of the value of Cumulative revenue over the period of 50 years is Rs Preferred Bidder- Lasarda-Pacheri, 256.304 PL cum 19 Manganese tonnes (10% 26.10.2016 27.12.2016 mineral dispatch highest bid- 9 1367 crore with an additional contribution of Rs 1215 Thriveni Earth Kendujhar Ha ML Odisha Cutoff) 44.65 % crores through auction. Movers Pvt Ltd.

Ghoraburhani- reserve price 5% of the value Cumulative revenue to state government for period of Preferred Bidder- 20 sagasahi, Sundargarh Iron ore 139.2 ha 99.59 MT ML 23.12.2015 02.03.2016 of mineral dispatch highest 7 50 years- 11,328 crore, inclusive of 8216 Cr additional Essar Steel Odisha bid- 44.35% contribution through auction.

Kalamang West reserve price 10 % of the value Cumulative revenue to state government for period Preferred 21 (Northern Part) , Iron ore 92.875 Ha 92.85 MT ML 07.03.2017 18.05.2017 of mineral dispatch highest bid- 11 of 50 years- Rs 10,439.25 crore, inclusive of Rs Bidder- Bhushan

Odisha Sundergarh 100.05 % 8,938.36 Cr additional contribution through auction. Steel Ltd

Netrabandha Pahar, reserve price 10 % of the value Cumulative revenue to state government for period of Preferred Bidder- 22 Sundargarh Iron ore 139.223 Ha 81.973 MT ML 07.03.2017 19.05.2017 of mineral dispatch highest bid- 15 50 years- crore, inclusive of Cr additional contribution Bhushan Power & Odisha 87.15% through auction. Steel Ltd

Sindwari, Ramkhera, reserve price 7% of the value Cumulative revenue to state government for period Preferred Bidder- 23 Satkhanda Block- B, Limestone 474.5 Ha 174.45 MT ML 11.11.2016 05.01.2017 of mineral dispatch highest 3 of 50 years- 5603.35crore, inclusive of 4040.28 Cr Dalmia Cement Chittaurgarh bid- 48.05% additional contribution through auction. (Bharat) Rajasthan

Limestone block- 3B1-(a) n/v Deh of 267.6288 reserve price 7% of the value Cumulative revenue to state government for period Preferred Bidder- 24 tehsil JayalDistrict Limestone Ha 126.95 MT ML 11.11.2016 06.01.2017 of mineral dispatch highest 3 of 50 years- 5294.71crore, inclusive of 4157.24 Cr Emami Cement bid- 67.94% additional contribution through auction.

Rajasthan Nagaur

Limestone block- 3B1-(b) n/v Deh of 247.8711 reserve price 7% of the value Cumulative revenue to state government for period of Preferred Bidder- 25 tehsil JayalDistrict Limestone Ha 168.84 MT ML 02.07.2016 22.09.2016 of mineral dispatch highest 3 50 years- 6565 crore, inclusive of 5053 Cr additional Emami cement bid- 60.09% contribution through auction.

Rajasthan Nagaur

3D1, n/v Harima- 357.0937 reserve price 10% of the value Cumulative revenue to state government for period Preferred Bidder- 26 Pithsar, Tehsil & Limestone Ha 199.154MT ML 24.07.2017 26.09.2017 of mineral dispatch highest 3 of 50 years- 5565.61 crore, inclusive of 3781.19 Cr Ambuja Cement District Nagaur bid- 41.60% additional contribution through auction. Ltd Rajasthan

3B2, n/v Sarasani, Cumulative revenue to state government for period Preferred Bidder- 27 Tehsil & District Limestone 470 Ha 205.537MT ML 15.12.2017 05.02.2018 highest bid- 60.10% 3 of 50 years- 7005.07 crore, inclusive of 5163.46 Cr Nagaur additional contribution through auction. JSW Cement Ltd Rajasthan

Rata-Mandha-1A (RM-1A) Tehsil Shri Reserve price 10% of the value Cumulative revenue to state government for period of Preferred Bidder- 28 Mohangarh, District Limestone 420 Ha 209.265 MT ML 02.05.2018 25.06.2018 of mineral dispatch. Highest 50 years- 2766.01 crore, inclusive of 891 Cr additional Shree Cement Ltd bid- 10.40% contribution through auction.

Rajasthan Jaisalmer

3D-2 (n/v Harima- Cumulative revenue to state government for period Preferred 29 Limestone 434.085 Ha 142.579 MT ML 03.07.2019 26.08.2019 Highest bid-24.54% of 50 years- 2632.79 crore, inclusive of 1355.22 Cr Bidder-Adani Pithasar), Nagaur additional contribution through auction. Cementation Ltd Rajasthan

Block No. 13 of Cumulative revenue to state government for period Preferred Bidder- 30 Limestone 16.28 Ha 10.40834 MT ML 03.07.2019 04.09.2019 Highest bid-25.60% of 50 years-196.46 crore, inclusive of 103.21 Cr Sigma Minerals 4GIIA, Nagaur additional contribution throughauction. Ltd Rajasthan

Rama Rao Paol, ML. reserve price 35% of the value Cumulative revenue to state government for period of Preferred Bidder- 31 No. 2621,Ramgad, Iron ore 86.12 ha 14.709 MT ML 23.12.2015 01.10.2016 of mineral dispatch highest bid- 6 50 years- 7861 crore, inclusive of 6634 Cr additional JSW Ltd. bellary 90.82 % contribution through auction. Karnataka

M/s Lakshminaayan Mining company, ML. reserve price 35% of the value Cumulative revenue to state government for period of Preferred Bidder- 32 NO. 2487,Karadikolla, Iron ore 33.8 ha 31.53 MT ML 23.12.2015 03.10.2016 of mineral dispatch highest bid- 7 50 years- 1911 crore, inclusive of 1637 Cr additional MSPL Ltd. Karnataka Bellary 100.30% contribution through auction. M/s Tungabhadra Minerals Pvt. Part I : 29.712 MT, reserve price 35% of the value Cumulative revenue to state government for period of Preferred Bidder- 33 Ltd. ML. No. Iron ore 13053 ha Part II: 4.178 MT ML 23.12.2015 04.10.2016 of mineral dispatch highest 4 50 years- 6833 crore, inclusive of 5661 Cr additional JSW Ltd. 2365,Ittanahalli, bid- 81.10% contribution through auction. Karnataka Bellary M/s Tungabhadra Minerals Pvt. reserve price 35% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 34 Ltd. ML. No. Iron ore 33.21 ha 6.939 MT ML 23.12.2015 04.10.2016 of mineral dispatch highest 3 1230 crore with an additional contribution of Rs 957 JSW Ltd. 2366,Ittanahalli, bid-58.9% crores. Karnataka Bellary

Mining Engineers’ Journal, Vol. 21, No. 7 23 February 2020 n Technical Article

karthikeyas reserve price 35% of the value Cumulative revenue over the period of 50 years is Manganese, ML No. Preferred Bidder- 34 Iron ore 26.71 ha 28.47 MT ML 23.12.2015 05.10.2016 of mineral dispatch highest 3 Rs8503 crore with an additional contribution of Rs 2559,Swamimalai MSPL Ltd. bid- 111.1% 7386 crores through auction. Karnataka range,bellary

hothur traders, ML reserve price 35% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 35 No. 2313, Malgolla, Iron ore 21.61 ha 10.026 MT ML 23.12.2015 05.10.2016 of mineral dispatch highest 5 1302 crore with an additional contribution of Rs 1115 JSW Ltd. Bellary bid- 100.1% crores through auction. Karnataka

V S Lad & Sons, ML. reserve price 35% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 37 NO. 2290,Sandur, Iron ore 100.54 ha 28.618 MT ML 23.12.2015 06.10.2016 of mineral dispatch highest bid- 6 6712 crore with an additional contribution of Rs 5767 JSW Ltd. Bellary 102.52 % crores through auction. Karnataka

reserve price 35% of the value Cumulative revenue over the period of 50 years is Rs ML No. 2148, Sri.H G Preferred Bidder- 38 Iron ore 60.66 Ha 63.33 MT ML 30.01.2018 06.09.2018 of mineral dispatch highest bid- 5 19,620.16 crore with an additional contribution of Rs Rangangouda MSPL Limited 129.90 % 17,373.27 crores through auction. Karnataka

ML No 2563, M/ reserve price 35% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 39 sKanhaiyalal Iron ore 30.09 Ha 9.260 MT ML 30.01.2018 05.09.2018 of mineral dispatch highest 5 1,154.62 crore with an additional contribution of Rs MSPL Limited Dudheria bid- 111 % 1,002.84 crores through auction. Karnataka

ML No 995, M/ reserve price 35% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 40 sMysore Minerals Iron ore 32.89 Ha 9.708 MT ML 30.01.2018 04.09.2018 of mineral dispatch highest bid- 6 1,705.39 crore with an additional contribution of Rs JSW Steel Ltd Limited 95.20 % 1,449.58 crores through auction. Karnataka

ML No 2433, M/ reserve price 35% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 41 sNidhi Mining Iron ore 29.49 Ha 10.024 MT ML 30.01.2018 03.09.2018 of mineral dispatch highest bid- 3 1,600.42 crore with an additional contribution of Rs Minera Steel and Company 59.50 % 1,248.03 crores through auction. Power Pvt Ltd Karnataka

ML No 2245, M/ reserve price 35% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 42 sBharath Mines & Iron ore 24.47 Ha 7.577 MT ML 30.01.2018 03.09.2018 of mineral dispatch highest bid- 3 551.82 crore with an additional contribution of Rs Kirloskar Ferrous Minerals 55.50 % 423.59 crores through auction. Industries Ltd Karnataka

ML.No. 2566,Shri.M. reserve price 36.4% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 43 Chennakeshava Iron ore 7.57 Ha 3.179 MT ML 26.09.2018 05.12.2018 of mineral dispatch highest bid- 2 158.80 crore with an additional contribution of Rs Kirloskar Ferrous Reddy 36.70 % 108.93 crores through auction. Industries Ltd Karnataka

M.L.No. 2185 A,M/s reserve price 35% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 44 Mineral Miners & Iron ore 44.42 Ha 9.224 MT ML 26.09.2018 05.12.2018 of mineral dispatch highest bid- 2 506.08 crore with an additional contribution of Rs Hothur Ispat Traders 39.10 % 353.98 crores through auction. Pvt Ltd Karnataka

ML No. 2346, M/ reserve price 35% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 45 sMineral Enterprises Iron ore 93.6 Ha 60.67 MT ML 08.03.2019 24.07.2019 of mineral dispatch highest bid- 4 5916.53 crore with an additional contribution of Rs JSW Steel Limited 67.10 % 4731.81 crores through auction. Limited Karnataka

ML No. 2239, M/ reserve price 35% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 46 sZeenath Transport Iron ore 43.58 Ha 12.207 MT ML 08.03.2019 24.07.2019 of mineral dispatch highest bid- 8 4152.79 crore with an additional contribution of Rs JSW Steel Company 97.50 % 3542.41 crores through auction. Limited Karnataka

ML No. 2531, M/ reserve price 35% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 47 sAshwathanaryana Iron ore 56 Ha 3.567 MT ML 08.03.2019 25.07.2019 of mineral dispatch highest bid- 4 403.82 crore with an additional contribution of Rs MSPL Limited Singh & Co 72.10 % 327.51 crores through auction. Karnataka

ML No. 1602, M/ reserve price 35% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 48 sNarayan Mines Iron ore 107.51 Ha 22.266 MT ML 08.03.2019 25.07.2019 of mineral dispatch highest bid- 8 3730.59 crore with an additional contribution of Rs JSW Steel Pvt Ltd 102.70 % 3206.12 crores through auction. Limited Karnataka

Preferred Hatupur Block, reserve price 1% of the value Cumulative revenue over the period of 50 years is Rs PL cum Bidder- Bansal 49 Brijpur, District- Diamond 133.50 Ha 0.604 MT 30.07.2016 05.10.2016 of mineral dispatch highest bid- 4 38 crore with an additional contribution of Rs24 crores ML Construction Madhya pradesh Panna 22.31 % through auction. Company, Bhopal

reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- Deora- Sitapuri- 50 Limestone 344.783 Ha 61.96 MT ML 30.01.2018 15.05.2018 of mineral dispatch highest bid- 2555.91 crores with an additional contribution of Rs M/s Ultratech Udiyapura, Dist.Dhar Madhya pradesh 77.10 % 2000.75 crores through auction. Cement Ltd

reserve price 5% of the value Cumulative revenue over the period of 50 years is Preferred Bidder- 51 Hinauti- 1, Satna Limestone 20.23 Ha 2.81 MT ML 30.01.2018 15.05.2018 of mineral dispatch highest bid- Rs 49.95 crores with an additional contribution of M/s Digiana Madhya pradesh 21.05 % Rs24.77 crores through auction. Industries Pvt.Ltd

reserve price 5% of the value Cumulative revenue over the period of 50 years is Preferred Bidder- 52 Hinauti- 2, Satna Limestone 12.14 Ha 1.67 MT ML 30.01.2018 16.05.2018 of mineral dispatch highest bid- Rs 32.48 crores with an additional contribution of M/s Digiana Madhya pradesh 25.05 % Rs17.52 crores through auction. Industries Pvt.Ltd

reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- Gauthana-Tikari 53 Graphite 33.016 Ha 6.24 MT ML 30.01.2018 17.05.2018 of mineral dispatch highest bid- 1263.40 crores with an additional contribution of Rs Urmila Dilip Graphite Block, Betul Madhya pradesh 200.05 % 1245.93 crores through auction. Chandan

Mining Engineers’ Journal, Vol. 21, No. 7 24 February 2020 Technical Article n

Preferred Bidder- reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Pratappura Iron-ore M/s Swastik 54 Iron ore 9.02 Ha 2.6 MT ML 30.01.2018 18.05.2018 of mineral dispatch highest 327.20 crores with an additional contribution of Rs Block, Jabalpur Buildmat India Madhya pradesh bid- 275 % 308.36 crores through auction. Pvt.Ltd

reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Mudhvay Sub- block Preferred Bidder- 55 Limestone 233.5 Ha 301.5 MT ML 28.03.2017 25.05.2017 of mineral dispatch highest 3 5532.04 crore with an additional contribution of Rs B, kachchh Shree Cement Ltd Gujarat bid- 20 % 2830.6 crores through auction.

reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Preferred Mudhvay Sub- block 56 Limestone 251.9 Ha 325 MT ML 28.03.2017 26.05.2017 of mineral dispatch highest bid- 3 7496.47 crore with an additional contribution of Rs Bidder-Adani C, kachchh Gujarat 30.05 % 4584.47 crores through auction. Cementation Ltd

reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Mudhvay Sub- block Preferred Bidder- 57 Limestone 107 Ha 125 MT ML 28.03.2017 30.05.2017 of mineral dispatch highest 4 3173.71 crore with an additional contribution of Rs D, kachchh JSW Cement Ltd Gujarat bid- 35 % 2053.71 crores through auction.

reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- Chitale- watangi, 58 Bauxite 75 Ha 2.86 MT ML 05.04.2017 20.06.2017 of mineral dispatch highest 3 66.70 crore with an additional contribution of Rs44.20 Gamma Iron Dist. Kohlapur bid- 55 % crores through auction. India Ltd Maharashtra

reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- Nandgaon Ekodi, 59 Limestone 369.52 Ha 42.1 MT ML 05.04.2017 20.06.2017 of mineral dispatch highest bid- 4 2920.02 crore with an additional contribution of Rs Ambuja Cements Dist. Chandrapur 125.05 % 2542.80 crores throughauction. Ltd Maharashtra

reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 60 Guguldoh Manganese 105 Ha 0.440 MT ML 19.01.2018 12.04.2018 of mineral dispatch highest 75.18 crore with an additional contribution of Rs68.30 Shanti GD Ispat bid-55.6 % crores through auction. Maharashtra

reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 61 Parli Bauxite 7.12 Ha 0.64 MT ML 01.02.2019 08.05.2019 of mineral dispatch highest 18.75 crore with an additional contribution of Rs12.15 Shree Malhar bid- 51.6% crores through auction. Minerals Maharashtra

reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- Humdara- 62 Bauxite 120.48 Ha 2.365 MT ML 01.02.2019 08.05.2019 of mineral dispatch highest 124.63 crore with an additional contribution of Rs Gamma Iron India Ghodepaiwadi bid- 115.2% 100.26 crores through auction. Limited Maharashtra

reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 63 Parseoni Manganese 44 Ha 0.159 MT ML 01.02.2019 08.05.2019 of mineral dispatch highest 94.37 crore with an additional contribution of Rs88.96 Universal Impex bid- 92.1% crores through auction. Maharashtra

reserve price 2% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 64 Thanewasana Copper 768.62 Ha 8.02 MT CL 01.02.2019 08.05.2019 of mineral dispatch highest 273.14 crore with an additional contribution of Rs Vedanta Limited bid- 3.6% 112.07 crores through auction. Maharashtra

Preferred Bidder- reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Sunflag Iron and 65 Lohardongri Iron ore 35.73 Ha 1.48 MT ML 01.02.2019 09.05.2019 of mineral dispatch highest 459.24 crore with an additional contribution of Rs Steel Company bid- 90.2% 387.14 crores through auction.

Maharashtra Limited

Preferred Bidder- reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Shri Bhairavnat 66 Ghungur- I Bauxite 14.24 Ha 0.8 MT ML 01.02.2019 09.05.2019 of mineral dispatch highest 33.94 crore with an additional contribution of Rs25.70 Earthmover and bid- 87.3% crores through auction.

Maharashtra Company

reserve price 2% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- 67 Dubarpeth Copper 816.29 Ha 1.343 MT CL 01.02.2019 09.05.2019 of mineral dispatch highest 40.43 crore with an additional contribution of Rs11.67 Vedanta Limited bid- 2.1% crores through auction. Maharashtra

Preferred Bidder- reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Sociedade 68 Nanar Bauxite 144.95 Ha 7.94 MT ML 01.02.2019 10.05.2019 of mineral dispatch highest 155.15 crore with an additional contribution of Rs De Fomento bid- 25.1% 73.34 crores through auction. Industrial Private Maharashtra Limited

reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Preferred 69 Ghungur- II Bauxite 10.65 Ha 0.32 MT ML 01.02.2019 10.05.2019 of mineral dispatch highest 11.46 crore with an additional contribution of Rs8.16 Bidder- Shri Jugai bid- 69.3% crores through auction. Minerals Maharashtra

reserve price 5% of the value Cumulative revenue over the period of 50 years is Rs Preferred Bidder- Gojoli – Somanpalli– 70 Copper 646.55 Ha 43.4 MT ML 01.02.2019 10.05.2019 of mineral dispatch highest 476.88 crore with an additional contribution of Rs Dalmia Cement Dongargaon bid- 5.2% 88.02 crores through auction. Bharat Limited Maharashtra

Estimated Total Revenue to be collected from auction of 70 blocks is Rs 2,02,125.99 Crores inclusive of Royalty, DMF and NMET.

Mining Engineers’ Journal, Vol. 21, No. 7 25 February 2020 n Technical Article

Mining prospect of high grade Dolomite and Limestone deposits of Duqm area in Southern Oman Dr Vivek Laul Abstract Oman is a big repository of industrial minerals, which include good quality limestone, dolomite, gypsum, and clays. Present paper deals with studies done on limestone, dolomite of Duqm area in southern Oman, which is located 550 km south of capital city, Muscat (Oman). Major rock formations are ranging in from Palaeozoic to Tertiary in age and overlain by Quaternary cover sediments.

The studies shows that the limestone and dolomite are of chemical grade which can be used in hydrated lime, quick lime, dolomite, good quality cement preparation, Iron industries etc. Inferences drawn in the paper are based on extensive surface geological investigations, sampling, pitting and test drilling carried out recently in the area.

INTRODUCTION (Figure 1) contains Palaeozoic to Tertiary Formations The aim of the study was to assess dolomite, limestone & within the study area and is described in Table 1 below intercalated shale, siltstone in study area located in Dump area 550 km south of Muscat, Oman, which was preliminary studied and mapped by Ministry of Petroleum and Minerals, Oman (JB Patel et al, 1992). Two approaches which were taken: a. Desktop Study: In order to do desktop study contours were created from SRTM image to know topography and elevation of the area. Preliminary report and published data about the area by various agencies were studied. b. Field Work: Field traverses was carried out soon to do ground verification in relation to understand geology and mineralization. Surface sampling, pitting was done for Grade verification. Test drilling was also carried out in selected places in order to know depth of mineralization and inferred resource estimation. Figure 1: Google Map showing location of study area ( Duqm, Oman) Location and Accessibility Study area Duqm in Oman is located in Sheet NE 40- Description and grade of major lithounits exposed in 03/07 and is approximately 550 km South of Muscat city the area (Oman). The area is approachable by metaled road. Duqm 1. Dolomite/ Dolomitic Limestone: Dolomite is creamish is connected by road and by air from Muscat (Oman). The to buff coloured in nature, highly fractured and typical google map showing location of study area is given below weathering features are present characteristic of (Figure 1). Dolomite. The strike of bedding is varying from N 10°E to N 20°E and dip varying from sub horizontal Topography: The major part of the study area around Duqm to 30° towards NW. It is exposed in Northwestern part is covered by contour values between 10 and 170 m above mean sea level while south western side attains higher and Northeastern part of study area. It is exposed on elevation, around 170 m. Eastern part of the area is having hill whose elevation varies from 90 to 150 m above elevation between 10 to 100 m above mean sea level. mean sea level. At places, brecciation is observed in dolomites, which indicates faulting within dolomite area. REGIONAL GEOLOGICAL SET UP IN STUDY AREA They are classified as high grade as per the chemical Duqm , Oman located 550 km south of Muscat capital city analysis done given in Table 2

Vivek Geo Services- B-25, Flat- 401, Prabhu Marg, Tilak Nagar, Jaipur, India. E-mail: [email protected]

Mining Engineers’ Journal, Vol. 21, No. 7 26 February 2020 Technical Article n

Table 1 : General Geology around study area, Duqm (Oman)-(after JP Patel et al, 1992) Group Name Formation Name Rock types Geological Age Fars Ghubbarah Bioclastic Limestone, Breciated Limestone Tertiary Green marl, Thin laminated gypsum, limestone and Dhofar Duqm Tertiary conglomerate Hadhramaut Ummer Radhuma Yellow bioclastic Calcarenite limestone Tertiary Mixed deposits with green to reddish marl, white chalky Hadhramaut Sirab Tertiary limestone, sandstone Interbedded dolomite with stromatolite , anhydrite, breccia, Huqf Buah Paleozoic reddish sandstone Huqf Shuram Limestone with silty shale Paleozoic

Figure 2: Photograph showing Dolomite/Dolomitic Limestone, Duqm Figure 3: Photograph showing Chalky Limestone, Duqm

2. Shale, siltstone and Limestone sequence: This low relief hills are having fine-grained fossiliferous sequence is present in northern part of study area limestone/ limestone, which is of calcarenitic nature exposed between dolomite sequence. It contains at places. It is very hard to break. These exposures Red and grey shale with sub-horizontal beds and at are having not much depth but lateral spread is more. places it is grading towards siltstone. At many places it They are of high grade as per the chemical analysis of samples given in Table 2. is interbedded with limestone. It is mixed sequence of limestone, shale and siltstone Shales are exposed in 4. White chalky Limestone: White colour soft chalky limestone is exposed below wadi sediments and in foot low lying areas. They are calcareous in nature based hill in many places north and central part of study area. on chemical analysis given in Table 2 These exposures are very soft and easy to break This 3. Fossiliferous Limestone/ Fine grained limestone: In is also high grade as chemical analysis shown in Table the southern part of study area low lying hillocks of 2 to 2. Drill core shows that colour changes from white to 3 m are exposed between gravel and sand area. These grey at depth.

TABLE 2: Chemical analysis of samples of Dolomite and Limestone Sr No Rock type CaO % MgO % SiO2 % Al2O3 % Fe2O3% 1 Dolomite 30 to 40 15 to 20 0.4 to 5 0.8 to 1.5 0.7 to 2.5 0.43 to 2. Fossiliferous Limestone/ High grade Limestone 52 to 54 1 to 2 1 to 2 0.36 to 1 0.46 3. Chalky Limestone 51 1.25 3.81 1.55 0.78 4. Limestone with shale, siltstone 37 2.64 10.81 4.95 1.95

Mining Engineers’ Journal, Vol. 21, No. 7 27 February 2020 n Technical Article

MINING PROSPECTS AND INVESTMENT POTENTIAL IN industry and minimum tax by port authorities on transporting DUQM (OMAN) processed ore from the port are the main attraction for Mining of these high grade Dolomite and Limestone deposits investors in Duqm. in Duqm is being undertaken by “Duqm Quarry” which is a government owned company and comes directly under CONCLUSIONS Special Economic Zone Authority at Duqm (SEZAD) - a 1. High grade dolomite and limestone can be used in Government of Oman enterprise. Mining is done as open steel, blast furnace and industry, etc cast mining by benching method. Duqm Quarry is producing aggregates of various sizes produced from raw materials to 2. Dolomite and limestone both can be used in preparation various companies for construction purpose which is setting of Lime and raw material for cement industry. up there units in Duqm. 3. Dolomite and limestone are also used for preparation of aggregate for construction purposes in Oman at Duqm Quarry Company is inviting investors to set up present. hydrated lime, quick lime, dololime, clinker plant in Duqm. 5. Inferred resource estimated shows around 118 million Raw material required for plant will be supplied by Duqm tons of dolomite and more than 200 million tons of Quarry company under SEZAD. Quality control will be limestone in the Duqm area of Oman. responsibility of both plant and mine technical personnel. References Good infrastructure, port facilities near Arabian sea, land Patel, J.B (1992) - Geological map of Duqm and Madraca-Sheet NE provided by SEZAD at subsidized rate for developing 40 -03/07 –Ministry of Petroleum and Minerals, Muscat (Oman).

FIGURE 4: Geological map of study area, Duqm (Oman).

Mining Engineers’ Journal, Vol. 21, No. 7 28 February 2020 NOMINATIONS FOR MEAI AWARDS 2020

The Mining Engineers’ Association of India presents awards sponsored by the Industry/individuals during Annual General Meeting in June -July every year. Nominations for the following Awards are invited in the prescribed form, so as to reach the Secretary General by 15th of March 2020. Nomination can be made by one member for one award only. 1. MEAI - Sitaram Rungta Memorial Award for the best paper on Mining related issues during the year 2020 2. MEAI NMDC Award for significant contribution to Iron Ore Industry during the year 2020 3. MEAI Simminds Award for significant contribution to limestone industry during the year 2020. 4. MEAI Smt. Bala Tandon Memorial Award in recognition of contribution to Mining Industry for improving ecology, environment and aforestation during the year 2020. 5. MEAI Abheraj Baldota Memorial Gold Medal Award (Mining Engineer of the year 2020) in recognition of significant contribution to Mining Industry by a Mining Engineer with 20 years of experience in the Industry. 6. MEAI Abheraj Baldota Memorial Gold Medal Award (Young Mining Engineer of the years 2020) in recognition of significant service to Mining Industry by an Young Mining Engineer who has not completed 35 years of age as on 2020. 7. MEAI-SRG Informational Technology Award for the year 2020 in recognition of significant contribution to Mining Industry adopting Information Technology during the year. 8. MEAI-Smt. Gullapalli Saraladevi Memorial Award (Lifetime Achievement by a Mining Engineer) during the year 2020. 9. MEAI Master Tanay Chadha Memorial Geologist Award for the year 2020 in recognition of significant contribution by a geologist in the field of Mineral Exploration, quality control and production, mine planning etc. during the year. 10. MEAI- Smt Veena Roonwal Memorial Award for the year 2020 to a Mining Engineer/Geologist/a qualified person involved with Mining Industry with 10 years experience for presenting a paper during the year in a seminar/ symposium workshop organized by MEAI on “Water Management in and around a working mine” or “Implementation of New/Latest Technology in Mining and allied subjects. 11. MEAI- Smt Kiran Devi Singhal Memorial Award for the year 2020 only to a person (MEAI Member/Non member- need not necessarily be from mining discipline) for his/her contribution in the field of “Development and Conversation of Minerals and Environment” in and around Metalliferous mines (excluding Coal and oil) during the year 2020. 12. MEAI Award to a Best paper in Mining Journal Published in the Mining Engineers’ Journal in the year 2020. 13. MEAI-SCCL Coal Award for the year 2020 to a Mining Engineer, a Geologist, a Mechanical Engineer and a Foreman/Over man for meritorious contribution to the Coal Industry.

For detailed guide lines please visit website www.meai.org or memorandum of association and rules and regulations (as on 01.03.2018)

Application must be supported by at least two council members and must reach MEAI NHQ In Prescribed Format at Hyderabad before 15th March 2020.

Mining Engineers’ Journal, Vol. 21, No. 7 29 February 2020 n MEAI NEWS

MEAI NEWS Ahmedabad Chapter Brief Report on Half- Day Workshop Organized By Ahmedabad Chapter On

“Awareness about Simulators and Safety Devices Used in HEMM for Mining Industries’’

The most common mode of transport of Coal/ lignite and overburden in opencast mines, big or small, is tippers or dumpers and their use is on increase day by day. Unfortunately, Dignitaries on the dias from left Shri N K Chauhan, Shri N K Purohit, Shri the incidents of accidents due to such vehicles are alarmingly Swagat Ray, Shri D S Bhayal. high. After analyzing the accidents, DGMS has also recommended various safety features to be incorporated in the in the tippers /dumpers/ HEMM and training of operators using Simulator etc. through numerous circulars. Hence, to promote more awareness about Simulators, this half a day workshop was organized by South Gujarat Local Centre of Ahmedabad Chapter at GIPCL Conference Hall, Nani Naroli (Surat) on 23rd November 2019.

The following faculties were invited for this workshop: 1. Shri Shiv Sanker Singh - Automation Control, Nagpur A view of the audience 2. Shri Raj Iyer - Tecknosim Training Services, Mumbai

Officials and mining Contractors from the following lignite mines of South Gujarat, totalling about 5 persons participated in the workshop. 1. Vastan Lignite Mine, GIPCL 2. Valia Lignite Mine, GIPCL 3. Amod (G-19 Extn.) Lignite Mine, GMDC

Shri M A Nipane, Secretary, SGLC- MEAI delivered welcome Shri M ANipane Nipane, Secretary Local Centre delivering Welcome address address. It was followed by a presentation by Shri Raj Iyer, Tecknosim Training Services, Mumbai. He elaborated that Virtual Reality (VR) Mining training for Dump truck/ Haul truck Simulator is an excellent tool to train Drivers on How to drive a large truck safely. New operators are familiarized with the machine and learn basic operating techniques on the Simulator before they drive on actual machines. Experienced operators refine their skill sets to improve productivity.

Shri Shiv Sanker Singh, Automation Control, Nagpur then made his pentation. He emphasized upon the vast range of automation and processing technologies regarding safety devices to be incorporated in the Mine machineries including Dumpers, Excavators, Electrical equipment etc.

Vote of Thanks was proposed by Shri Ranjan Kumar, Treasurer, SGLC- MEAI. Shri Raj Iyer making his presentation

Mining Engineers’ Journal, Vol. 21, No. 7 30 February 2020 MEAI NEWS n

Brief Report on Round Table Discussions on “Has DMF Shri Z.M. Farooqui, He discussed the difference in Fulfilled its Objectives?” Sr. Mgr Geology, DMF & CSR and expressed his A Round table discussions on “Has DMF fulfilled its objec- Mata No Madh views to involve Stakeholders. He tives?” was conducted on 25/09/2019 by the Kutch Local mentioned to put thrust on other Centre of Ahmedabad Chapter at GMDC’s Lignite Project priority areas also. Umarsar with the participation of senior executives and young enthusiastic members of MEAI across different min- Shri D.B. Goswami, He emphasised on PMKKKY ing projects in Kutch. Companies participated in the program Asst Mgr Finance, campaign a good start and were GMDC, UltraTech Cement, Sanghi Industries etc. The Panadhro Mine mentioned about the fund management. He also explained DPO Bhuj, wanted to attend the program but couldn’t due to provisions under section 9A,9B some urgent official work and conveyed his message and and new section 9C for DMF under best wishes for the success of Program. MMDR Act 2015. Shri H K Joshi, Vice Chairman, Ahmedabad Chapter presid- Shri C.H. Gohil, He briefed his experience about ed over the function. Shri B K Mahato GM GMDC Umarsar CSR Co-ordinator the work associated with DMF Project & MEAI Life Member delivered welcome address. and informed that most of the fund is utilise in Health & Education Shri Mahato, assisted by Shri P.S. Shaktawat, Asst. Mgr. sector. Geology, also made a brief basic Introductory presentation highlighting priority sectors, fund utilisation plan and works Shri R.K. Dash, Convener MEAI Kutch Local Centre pre- done so far in the Kutch region in the areas affected by the sented concluding remarks: ongoing mining activities. 1. When and How District Mineral Foundation was started. Round table discussions were coordinated by Shri H.K. 2. Government has formulated PMKKKY which is Joshi. He welcomed the dignitaries and participants and implemented by DMFs using the funds accruing to the briefed the forum about the significance of DMF, introduced DMF. by the Government as a part of welfare platform to the so- 3. Transparency and public accountability. ciety. He informed that utilisation of DMF is completely gov- 4. Mirror of Mining in social and philosophy to use of DMF erned by the committee under the Chairmanship of District to core villagers. Collector. He emphasised on global thinking of benefits by 5. Role of DMF committee. the scheme 6. How to send proposal to executive committee to get approval for DMF fund. The suggestions received are summarised below: Vote of thanks was proposed by Shri N.S. Prajapati, Dy. G.M. Member Suggestions / Comments (Mines) and Secretary of MEAI Kutch Local Centre.

Shri B.K. Mahato DMF is doing well in general in all GM Umarsar Mine aspects to the society in Kutch. But he emphasised on fulfilment of Drinking Water supply in core zone villages especially during summer period through DMF Funds. Shri S.R. Rahtore He mentioned about development Gadhsisa Bauxite of cross Roads in the core zone Shri R.K. Das presenting Concluding Remarks. Project villages under DM Fund. He suggested for Skill development programs to be conducted by DMF fund. Shri Vinay Chitale, He emphasised to utilize the funds Addle President, to provide best medical facilities Ultra Tech Cement in the affected areas. He also put thrust to involve Local Panchayat members of the affected areas. Views Shared by Shri D.B. Goswami (Panandhro)

Mining Engineers’ Journal, Vol. 21, No. 7 31 February 2020 n MEAI NEWS

and Deposit No-10 till the year 2035, all need to gear up to achieve the given targets for the good of the Country in general and for the betterment of the Company in particular, he reiterated. Shri A.K. Prajapati felicitated the outgoing Chairman Shri T.S. Cherian.

Shri A.K. Prajapati told that Shri T.S. Cherian is a very dedicated and hard working person and also a perfectionist. He also shared his experiences with Shri T.S. Cherian and wished him a very happy, healthy and peaceful retired life. Shri P.K. Majumdar, G.M (Prod), Shri Mridul Dixit , D.G.M(Min) Views Shared by Shri S.R. Rathore and other members shared their experiences with Shri T.S. Cherian and wished him a very happy retired life.

Shri T.S.Cherian, the outgoing Chairman of the Bailadila Chapter in his concluding remarks congratulated Shri A.K. Prajapti on his unanimous election as Chairman of the Chapter and welcomed him to Bacheli Complex on his transfer from Kirandul Complex to Bacheli Complex. He told that Shri A.K. Prajapati is a dedicated person to the work, he not only put his efforts in the production activities but also highly safety conscious. Shri T.S. Cherian wished all the Views Shared by Shri G.K. Patel members a happy and healthy life ahead in NMDC Ltd.

Bailadila Chapter The meeting ended with vote of thanks proposed by Shri General Body meeting held on 27/12/2019 Rajesh Jaiswal, A.G.M (Mining). General body meeting of Bailadila Chapter was organized on 27th December 2019 in Bacheli Complex.

After formal welcome to the Chairman and Vice Chairman of the Chapter, and welcome speech by the Secretary Shri C.V. Subrahmanyam, a technical paper was presented by Shri M.M. Malik, Sr. Manager (Mining) on "Collision Avoidance system". This system can avoid accident, which may occur due to collision of two vehicles that may reach the junction of two parallel roads. This system has been thought over, Members attending the meeting worked out indigenously, installed, tested and found useful, after experiencing some "near miss incidents" in the above said junction. Shri T.S. Cherian , outgoing Chairman of the Bailadila Chapter has presented a memento to Shri M.M. Malik., Sr. Manager (Mining).

Members have unanimously elected Shri A.K. Prajapati, E.D, Kirandul Complex as Chairman of the Bailadila Chapter as Shri T.S. Cherian, the present Chairman is retiring from the services of NMDC ltd on 31st December 2019. Shri A.K Prajapati, the incoming Chairman of the Chapter in his Technical presentation by Shri M.M. Quereshi, Sr. Manager (Mining) address told the members that all needs to be assessed for the post March 2020 situation when some of the Iron Ore Mines may shut down due to Lease issues. The responsibility will rest more on the NMDC Ltd and its employees during the times of anticipated Iron ore shortage.

Bailadila region's present lease extension has been given by the Government of Chhattisgarh for Deposit No-05 Address by Shri A.K. Prajapati, incoming Chairman of the Chapter

Mining Engineers’ Journal, Vol. 21, No. 7 32 February 2020 MEAI NEWS n

Chairman Shri P.N. Sharma, Chief Controller of Mines (In Charge), Indian Bureau of Mines

Vice Chairman Dr. J.C. Jhanwar, Chief Scientist, Central Institute of Mining and Fuel Research

Secretary Dr. Y.G. Kale, Regional Controller of Mines, Felicitation to outgoing Chairman Indian Bureau of Mines

Nagpur Chapter Joint Secretary Shri Arun S. Chachane, PRESS NOTE Asstt. Mining The Annual General Meeting of the Nagpur Chapter of the Engineer, Indian Bureau of Mines Mining Engineers’ Association of India was held on 11th October 2019 under the Chairmanship of Shri C.S. Gundewar, Treasurer Shri A.D. Gupta, former Controller General, Indian Bureau of Mines at Hotel Asstt. Mining Geologist, Heritage, Nagpur. At the outset Shri Parag, Tadlimbekar, Indian Bureau of Mines Secretary, Nagpur Chapter welcomed all the members and invitees. It was followed by the welcome address by Shri Ex-Officio Member Shri D.K. Sahni, D.K. Sahni, Chairman of the Nagpur Chapter. In his welcome Immediate Past Chairman, address Shri Sahni expressed concern for the challenges MEAI Nagpur Chapter being faced by the Indian mining industry and urged that and Retd, CMD, MOIL platforms like MEAI can be used to find out apt solution for the sustainable development of the industry. Executive Members (1) Shri H.R. Kalihari, It was followed by the presentation of Secretary’s report by Ex-SrDGM, MOIL Shri Parag Tadlimbekar. Shri Parag highlighted about the (2) Shri Parag Tadlimbekar, minutes of the last AGM held on 7th July 2018. The minutes Suptd. Mining have been confirmed by the House. He also briefed on the Geologist, Indian Bureau of Mines activities carried out by the Nagpur Chapter during the last (3) Shri Kishore Magre, year. Thereafter, Shri A.S. Chachane, Joint Secretary cum Ex. Sr DGM, MOIL Treasurer, presented the audited accounts of the MEAI, (4) Dr. I.L. Muthreja, Nagpur Chapter. The audited Balance Sheet for the year Prof and Head, Dept of 2018-19 was adopted by the house. Mining Engineering, VNIT, Nagpur (5) Shri Kishore Chandrakar, It was followed by the presentation of audited accounts GM, MOIL. by Shri Mohan Rahangdale, Treasure for the International Conference organised by the MEAI, Nagpur Chapter in Special Invitee (1) Shri Sitaram Lomaror, December 2017. This was also adopted by the house with Chief Manager, a suggestion to get back the GST dues from the GST Central Mine Planning department at the earliest. and Design Institute Ltd. (CMPDI) (2) Shri B.P. Kaishta, Thereafter, Dr. Radhakrishnan acted as Election Officer Retd. GM, MOIL for electing new Executive body for the term 2019-21. He informed the house that as per constitution of the MEAI, members were requested to suggest the names for the The new body was installed in the presence of Shri C.S. new body. However, he regretted that only 7 members Gundewar, former Controller General, IBM. Speaking on the have suggested the names. Therefore, it was decided that occasion, Shri P.N. Sharma, new Chairman of the Chapter new body will be elected by inviting suggestions from the sought co-operation of all the members for the healthy members present. After deliberations, the house adopted growth of the Chapter. He expressed confidence that MEAI resolution to have two separate posts for Joint Secretary will be more vibrant to put forward the industry’s view point and Treasurer. The following new body has been elected for before the policy makers. Dr. Y.G. Kale, new Secretary while the term 2019-21 unanimously. expressing thanks requested members to encourage their

Mining Engineers’ Journal, Vol. 21, No. 7 33 February 2020 n MEAI NEWS

colleagues to become members of the MEAI. He also sought contribution from the members for dissemination of technical knowledge on topical interest. Speaking on the occasion as presiding officer, Shri C.S. Gundewar congratulated the new executive body of the Nagpur Chapter and wished them all the success. On this occasion, Service Excellence Award 2019 for extraordinary service to MEAI and mineral industry of India which was conferred by MEAI Head Quarters to Shri D.K. Sahni was presented to him by Shri P.N. Sharma. The AGM ended with vote of thanks proposed by Dr. Y.G. Kale. Photograph No-4: Members attending the Annual General Meeting and Members and their families in large numbers participated in election of New Office Bearers of MEAI, Nagpur chapter. the AGM.

Newly Elected Executive committee of Mining Engineers’ Association of India, Nagpur Chapter for the year 2019-21. (From Left to Right) Shri Arun Photograph No-5: Members attending the Annual General Meeting and S. Chachane, Joint Secretary, Shri D.K. Sahni Outgoing Chairman, Dr. Y.G. election of New Office Bearers of MEAI, Nagpur chapter. Kale, Honorary Secretary, Shri P.N. Sharma, Chairman, Shri C.S. Gundewar Chief Guest & Former Controller General, IBM, Dr J.C. Jhanwar, Vice Chairman, Shri A.D. Gupta, Treasurer.

Photograph No-6: Members attending the Annual General Meeting and Photograph No-2: Welcome address by Shri D.K. Sahni, Outgoing Chairman, election of New Office Bearers of MEAI, Nagpur chapter. MEAI, Nagpur Chapter. (From Left to Right outgoing committee) Shri Parag M. Tadlimbekar, Honorary Secretary, Shri H.R. Kalihari, Vice Chairman, Shri D.K. Sahni Chairman, Shri C.S. Gundewar Former Controller General, IBM, Shri Arun S. Chachane, Joint Secretary Cum Treasurer.

Photograph No-7: Family Members of members of MEAI, Nagpur Chapter Photograph No-3: Presentation of MEAI Nagpur Chapter’s Report by Shri attending the Annual General Meeting and election of New Office Bearers Parag M. Tadlimbekar, Outgoing Honorary Secretary, MEAI, Nagpur Chapter. of MEAI, Nagpur chapter.

Mining Engineers’ Journal, Vol. 21, No. 7 34 February 2020 MEAI NEWS n

underground especially for the coal mining. These included surface features including geology and structures of rocks not only of the mine area but the surrounding areas in view of rock mass ratings for roof support plan for the underground mine; ventilation, air quality, water draining etc. Mine operation needs pre-approval from the DG, DGMS for safety point of view. Project management unit, therefore, is must for each mine he emphasised.

Photograph No-8: Address by Shri P.N. Sharma, Chairman (Newly elected), Shri Shandilya gave details of YESTU activities particularly MEAI, Nagpur Chapter. related to coal mining blocks and interaction with Ministry of Mines. He informed that government of India has allowed 100% FDI to boost coal mining in the country; and that it will result in large employment opportunities for mining geologists and reduction in coal import.

Both the lectures invoked interesting and interactive discussions among the audience.

Details of the photographs attached:

Photograph No-9: Vote of Thanks by Dr. Y.G. Kale, Honorary Secretary (Newly elected), MEAI, Nagpur Chapter

Rajasthan Chapter-Jaipur Ninth Executive Committee meeting of Rajasthan Chapter- Jaipur was held prior to the Monthly Lectures. The objective of the meeting was to discuss and obtain suggestions for (i) generating funds for maintenance of Mining Welfare Centre at Jaipur and (ii) to discuss the modalities of organising a National Conference on mining of deep-seated deposits. Various suggestions came out from the members to rent out Executive meeting conducted by S/S PC Bakliwal and SK Wadhawan, the MWC for organising scientific and other functions. For Secretary the Conference, a core committee was formed comprising S/Shri D.K. Saxena, R.S. Rathore, O.P. Gupta, P.C. Bakliwal and S.K. Wadhawan to prepare Preamble and contact various organisations for their interaction, support and sponsorship. Tentative date of this Conference is kept in December 2020. It was agreed upon to involve DGMS and suggested to have full support of National Council of MEAI for larger participation.

MEAI Rajasthan Chapter-Jaipur organised two expert Shri DK Saxena delivering his lecture lectures on 18th January 2020. The first lecture was given by Shri D.K. Saxena, Former Director, DGMS and MEAI National Council Member, on ‘Mines safety Audit – Concepts and Practices’ and the second was by Shri B. Shandilya, Director, YESTU, Mining & Infra Solutions Ltd. on ‘Captive to Commercial Coal Mining in India – a Journey and Way Forward’.

Shri Saxena gave a detailed account of the audit points considered for the mines safety – both open cast and the Shri B. Shandilya delivering his lecture

Mining Engineers’ Journal, Vol. 21, No. 7 35 February 2020 n MEAI NEWS

Audience in the meeting and lectures

Celebration of Indian Mining Day-2019 Rajasthan Chapter-Jaipur celebrated the Indian Mining Day at Mining Welfare Centre, Jaipur on 1st November 2019. The function commenced with MEAI flag hoisting by Shri P.C. Bakliwal, Chapter Chairman followed by taking of Pledge by Members present during the flag hoisting the members present for adopting good practices in mining and geoscientific activities for sustainable development of our country.

It was followed by a technical talk on ‘Application of modern techniques for controlled blasting and safe demolition of structures and towers’ by Shri Anand Sharma, ME and Director of M/S QuarryTech. Shri Sharma described the requirement, preparations, precautions, explosives used and methodology adopted in demolishing the concrete structures/ buildings and tall towers through pictures and videos. He showed a few case studies of safe demolishing buildings at Jaipur, Sonipat, Gandhinagar and also the future activities to be handled in Kerala. It was highly appreciated Members taking the pledge by one and all present in the hall.

The Executive Meeting of MEAI, Rajasthan Chapter-Jaipur was also held after the above talk wherein details of the activities of the Chapter including the National Workshop held on 20th October 2019 on Industrial Minerals were presented by Dr. S.K. Wadhawan, Secretary of the Chapter. Meeting was chaired by Shri P.C. Bakliwal, Chapter-Chairman.

The function ended with the vote of thanks to the expert and all the members/ guests present by the Secretary the Chapter. Shri Anand Sharma, ME delivering his talk

Flag hoisting by Shri P.C. Bakliwal, Chapter Chairman Gathering present during the talk

Mining Engineers’ Journal, Vol. 21, No. 7 36 February 2020 Mining Engineers’ Journal, Vol. 21, No. 7 37 February 2020 conferences, seminars, workshops etc. MEAI Organized by: Australian Centre for Geomechanics (ACG). 07 Feb 2020: Environment and Forest Clearance. Website: http://www.slopestability2020.com/ organised by Bellary-Hospet chapter at Hotel Malligi, 21-22, May 2020: The IPCC 2020 conference. Making J.N Road, Hosapete - 583 201, Karnataka. For details open-pit mining more efficient and continuous. Hyatt cobtact: K. Krishnudu - +91 9448656260, S. Ravindra - +91 Zilara Cancun, Mexico. Contact: International Mining Team 9242222197. Email: [email protected]. Publishing Ltd, 2 Claridge Court, Lower Kings Road, Berkhamsted, Hertfordshire, England HP4 2AF, UK. Tel: +44 India (0) 1442 870 829, Email: [email protected] or emma@ 2-8 Mar 2020: 36th International Geological Congress, im-mining.com Delhi, India. Contact: Geological Survey of India, C-II, 23 -30 May 2020: ALTA 2020 Nickel-Cobalt-Copper, Pushpa Bhavan, Madangir Road, NewDelhi-110062. Phone: Uranium-REE, Gold-PM, In Situ Recovery, Lithium +91 1129965750, +91 1126057035, Email: igc.delhi2020@ Conference & Exhibition. Pan Pacific Perth, 207 Adelaide nic.in, [email protected], editor.mej.meai@gmail. Terrace, Australia. Contact: ALTA Metallurgical Services com 2020, Allison Taylor, PO Box 1211, Blackburn North, Australia. Phone: +61411692442, Email: allisontaylor@ Abroad altamet.com.au 23-27 Feb 2020: PBZN 2020 - 9TH INTERNATIONAL SYMPOSIUM ON LEAD AND ZINC PROCESSING. 3-5 Jun 2020: FLOTATION 2020. Lima, Peru. Venue: Sol LOCATION: San Diego, United States. Organized by: The de Oro Hotel, Calle San Martín 305, Miraflores. Contact: Minerals, Metals & Materials Society. Website: https://www. International Metallurgical Consultants Flotation 2020, tms.org/TMS2020/Programming/PbZn_2020/TMS2020/ Alfredo Olaya, Mariscal Castilla 889, Santiago de Surco, Programming/PbZn_2020.aspx?hkey=ae21cd33-e6e3- Lima, Peru, Email: alfredo.olaya@encuentrometalurgia. 4915-b325-2ba1ad6be862 com, Web: http://www.encuentrometalurgia.com. th 1-4 Mar 2020: PDAC 2020 - PROSPECTORS AND 08 - 09 June 2020: 10 International Symposium on DEVELOPERS ASSOCIATION OF CANADA ANNUAL Biomining (Biomining '20). National Maritime Museum, CONVENTION. PDAC is the World’s Premier Mineral Falmouth, Cornwall, United Kingdom. Contact: +44 (0)7768 Exploration & Mining Convention is the leading convention 234 121; [email protected] for people, companies and organizations in, or connected 10 - 11 June 2020: 6th International Symposium on with, mineral exploration. Toronto, ON, Canada. website: Sustainable Minerals (Sustainable Minerals 2020). https://www.pdac.ca/convention. National Maritime Museum Cornwall, Falmouth, United 12-13 Mar 2020: MiningTech Africa 2020. Johannesburg, Kingdom. Contact: MEI, Barry Wills, Dr., 1 Freeman Collins South Africa. Contact: Spire Events Pte Ltd. MiningTech DriveTrescobeas Road, Falmouth, United Kingdom. Phone: Africa 2020, Mahesh Babu, 24 Peck Seah Street #02- +44 (0)7768 234 121, Email: [email protected], Web: 09Nehsons Building, Singapore. Phone: +65 6717 8500, http://www.min-eng.com/ Email: [email protected], Web: https://www. spire-events.com/conferences 02 – 03 July 2020: GEOMETALLURGY 2020. Sol de Oro Hotel, Calle San Martín 305, Miraflores, Lima, Peru. Contact: 21 - 23 April 2020: MiningWorld Russia 2020. Crocus Expo, International Metallurgical Consultants Geometallurgy 2020, IEC, 65-66 km Moscow City Ring (MKAD), Moscow, 143 Alfredo Olaya, Mariscal Castilla 889, Santiago de Surco, 401, Russia. Contact: +7 (499) 750-08-28; MiningSupport@ Lima, Peru. Email: alfredo.olaya@encuentrometalurgia. hyve.group com, Web: http://www.encuentrometalurgia.com th 27-30 April 2020: 12 International Comminution 27 - 29 Oct 2020: International Mining and Resources Symposium (Comminution '20). Vineyard Hotel, Cape Conference & Exhibition (IMARC Oct 2020). Melbourne Town, South Africa. Contact: +44 (0)7768 234 121; bwills@ Convention and Exhibition Centre, Melbourne, Australia. min-eng.com 8-13 Nov 2020: IAGS 2020 — 29th INTERNATIONAL 12 - 14 May 2020: 2020 INTERNATIONAL SYMPOSIUM ON SLOPE STABILITY IN OPEN PIT MINING AND APPLIED GEOCHEMISTRY SYMPOSIUM. Viña del Mar, CIVIL ENGINEERING. Perth, Western Australia, Australia. Chile. website: https://iags2020.cl/

Printed and Published by S. Krishnamurthy, Secretary General, Mining Engineers’ Association of India, on behalf of Mining Engineers’ Association of India and printed at Deepu Printers, Raghava Ratna Towers, Chirag Ali Lane, Nampally, Hyderabad - 500 001. and published at F-608 & 609, ‘A’ Block, VI Floor, Raghavaratna Towers, Chirag Ali Lane, Abids, Hyderabad - 500 001. Editor: Dr. P.V. Rao

Mining Engineers’ Journal, Vol. 21, No. 7 38 February 2020 CMYK

Date of Publication: 25-1-2020 Regd. with RNI R.No. 71519/99; No. of Pages: 36+Cover 4 Date of Posting: 29 / 30 of every month Postal Regd. No. H-HD-GPO/024/2018-2020

Official Publication of Mining Engineers’ Association of India

Price `100/-

Vol. 21 No. 7 Monthly February - 2020

Syama mine in Mali : the world’s first fully automated mine Mining Engineers’ Association of India Flat-608 & 609, Raghava Ratna Towers, A-Block, VI Floor, Chirag Ali Lane, Abids, Hyderabad - 500001 Ph.: 040 - 66339625, 23200510, Email: [email protected] Website: www.meai.org

CMYK CMYK

Date of Publication: 25-1-2020 Regd. with RNI R.No. 71519/99; No. of Pages: 36+Cover 4 Date of Posting: 29 / 30 of every month Postal Regd. No. H-HD-GPO/024/2018-2020

Official Publication of Mining Engineers’ Association of India

Price `100/-

Vol. 21 No. 7 Monthly February - 2020

Syama mine in Mali : the world’s first fully automated mine Mining Engineers’ Association of India Flat-608 & 609, Raghava Ratna Towers, A-Block, VI Floor, Chirag Ali Lane, Abids, Hyderabad - 500001 Ph.: 040 - 66339625, 23200510, Email: [email protected] Website: www.meai.org

CMYK