corrigendum # 1 to tender document and reply to …...harima pithasar, block-3d document no.:...

CORRIGENDUM # 1 TO TENDER DOCUMENT AND REPLY TO PRE BID QUERIES

FOR E-AUCTION

OF

MINING LEASE

FOR CEMENT GRADE LIME STONE

OF

BLOCK- 3D HARIMA-PITHASAR

TEHSIL NAGAUR

DISTRICT NAGAUR STATE: RAJASTHAN

Document No.: MSTC/NRO/Directorate of Mines and Geology Rajasthan, Udaipur/1/Udaipur/ 15-16/12305

DIRECTORATE DEPARTMENT OF MINES & GEOLOGY

GOVERNMENT OF RAJASTHAN

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Sl. No. Description Page No. Clause / Para /

Section 1 Timetable 17-19 of 166 12 Modification

2 Bid Security 24 of 166 15 Addition

3 Reply to Pre Bid Queries

The revised Timetable is enclosed as Annexure-I to this Corrigendum # 1

CORRIGENDUM # 1FOR

MINING LEASE FOR CEMENT GRADE LIME STONEOF

HARIMA PITHASAR, BLOCK-3DDocument No.: MSTC/NRO/Directorate of Mines and Geology Rajasthan, Udaipur/1/Udaipur/ 15-16/12305

All other terms & conditions of tender document remain unaltered.

The Reply to Pre Bid Queries is enclosed as Annexure-II to this Corrigendum # 1

The following is appended in clause no. 15.2 Bid Security shall be in favour of Director,Department of Mines & Geology ,Govt. of Rajasthan payable at Udaipur.

Amendment / Addition / Modification / Deletion

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ANNEXURE-I TO CORRIGENDUM # 1 12. Timetable The following timetable shall apply to the tender process. The timetable may be

amended by the State Government through issuance of an addendum to the Tender Document.

S. No. Event Description Time (Days) Stage I – E-auction process for selection of Preferred Bidder 1. Publication of Notice Inviting Tender in

newspaper and on the State Government & MSTC websites.

17th November 2015

2. Commencement of sale of Tender Document at the website of MSTC. .

17th November 2015

3. Last date for sale of Tender Document. 2nd Decemeber 2015 4. Last date of receiving queries from Bidders 11th Decemeber 2015 5. Pre-bid conference at 1500 Hrs (IST) 16th Decemeber 2015 6. Last date for responses to queries by the State

Government 28th Decemeber 2015

7. Bid Due Date (Technical + initial price offer) by 1700 Hrs (IST)

4th Janurary 2016

8. Opening of the Technical Bids. 5th Janurary 2016 9. Start date for examination of the Technical

Bids 5th Janurary 2016

10. Announcement of the Technically Qualified Bidders

19th Janurary 2016

11. Training and mock-auctions for all the Technically Qualified Bidders on e-auction platform by the e-auction platform provider

21st Janurary 2016

12. Opening of initial price offers of Technically Qualified Bidders and intimation of Qualified Bidders two days prior to the scheduled date of e-auction of the respective mineral block (to Qualified Bidders only)

25th Janurary 2016

13. Conduct of ascending forward electronic auction and submission of Final Price Offer on the electronic auction platform.

29th Janurary 2016

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14. Announcement of Preferred Bidder 29th Janurary 2016

15. Payment of first installment (10%) of Upfront Payment by the Preferred Bidder for mining lease.

29th Feburary 2016

16 Issuance of letter of intent by State Government

8th March 2016

17. Submission of Performance Security and second installment (10%) of Upfront Payment by the Preferred Bidder.

11th April 2016

18. Submission of mining plan by the Preferred Bidder and Issuance of order by the State Government considering Preferred Bidder as Successful Bidder

8th September 2016

Stage II : After Successful Bidder obtains all necessary clearances/approvals from various government agencies/departments

1. Submission of all necessary clearances /approvals from various government agencies/departments by Successful Bidder

T1

2. Execution of Mine Development & Production Agreement (MDPA) between State Government & Successful B i d d e r .

T1+20

3. Payment of third installment (80%) of Upfront Payment

T1+50

4. Grant of Mining Lease to the Successful Bidder.

T1+80

5. Execution of Mining Lease Deed

T1+110

6. Registration of Mining Lease Deed T1+140

Note: • The timeline shown above is based on calendar days • Due dates will be updated if any holidays are announced by government in the intervening period • The State Government reserves the right to update/ change or modify any of the above dates

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Sl. No. Bidders Queries Reply 1 Schedule-V: Information Memorandum,

Summary of the Mineral BlockPart A-General Information about Mineral BlockPoint No.4Quantity of Minerals (Grade-wise)Mineral & Total Geological ResourcesEstimated Geological resource as per document is 290.76 Million Tonne of cement grade limestone with avg of CaO 47.56 %, SiO2 4.84 % & MgO 2.67 %

Summary of Core Logs - Annexure-IChemical Analysis of Boreholes - Annexure-II

In the document chemical analysis of 42 Boreholes are provided in which core recovery is only apx. 50 % which is not suitable for assessing the right quality of total Geological resource of the block

Dully considered while estimating the resources.

2 Schedule V: Information Memorandum, Part A-General Information about mineral block, point no.2 Area (hectares), Mineralised AreaOut of total area 940.9 Hect, mineralised area only 791 Hect including 23.37 hect of charagah land.

An area of apx. 50 hect is blocked under village, road & high tension electricity lines.

The successful bidder have to obtain all statutory licenses, permits, permissions, concessions, approvals and consents related to mining operations. Further, while bidding the bidder has to take into consideration all the facts and circumstances with his own assessment and wisdom after ground level verification of the block.

3 Area blocked under charagah land is 23.37 hect, where mining is subject to the court and state govt policies from time to time as mention under clause no 22

Tender Condition Prevails.

4 Net available mineralised area for mining is only 717 hect against area as per document 791 hect which is 90 % so, considering this facts total geological resource will come down by 10 % to 261 Million Tonne only

Geological Resource has been calculated of Mineralised area only.

REPLY TO PRE BID QUERIES MINING LEASE FOR CEMENT GRADE LIME STONE

OFHARIMA PITHASAR, BLOCK-3D


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Sl. No. Bidders Queries Reply




5 Further geological resource blocked under statutory safety barrier (all along leasehold area &public property), pit slope etc. will account apx. 40 % of total available net geological resource (261 Million Tonne). Therefore only 156 Million Tonne mineable reserve will be available for mining

Mineral Resource has been calculated as per Mineral Auction Rules 2015

6 Is there any govt policy for private land aquisition ? As majority of the land is private Tender Condition Prevails.

7 Currently published by IBM, sale price of cement grade limestone mineral is very high. Will there be any Govt. policy for sale price revision &up to what extent ? Because at this stage we are unaware that up to what extent sale price is going to be.


Schedule E- Production Requirement Name of Block: Block 3D Harima-Pithasar

Minimum production plan as per document is 1styear 0.8 Million Tonne, 2ndyear 2.8 Million Tonne, 3rdyear 4.77 Million Tonne

A greenfield cement project will take apx. 3 year to commission the plant commercial production

Therefore first 2 year, there will be no production from mines, hence no minimum production clause to be there

As per document the minimum limestone production quantity from 3rdyear onwards 4.77 Million Tonne, therefore this block (having mineable reserve only 156 Million Tonne) will last for only 32 years, therefore minimum production quantity need to be review

Keeping above facts, total quantity &quality wise Geological resource of the block need to be reviewed.

9 6. Review Period and Site visit

Will the Government representative from State Geology and land department shall be available at site?

No State Geology and land department official will be available at site, bidder may undertake Site Visit as per clause no. 6.0 of Tender Document.

As no end use has been specified for the block therefore bidder has to be adhere min. annual production requirment as specified in Schedule E of MDPA

8

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10 8.1 A(a)(ii) Initial price offer must be equal to or greater than reserve price

15.6 Bid Security - If e auction process is annulled due to non submission of at least one Final Price offer on the electronic e auction platform, by qualified bidder(s) who has submitted the highest initial price offer

Suppose highest initial price offer by various bidders are same then every bidder has to submit at least one bid?

The clause no. 8.1(B) is self explainatory , please refer the same.

11 22. Charagah Land (pasture land)

Any mining related activity in Charagah Land (pasture land) falling in notified block shall be subject to the directions of Courts and State Policy pronounced from time to time in this regard. The bidder will be liable for all consequential impacts without recourse to the State Government.

No acquisition of charagah land shall have adverse impact on the targeted production


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12 Schedule E ; Production RequirementSchedule IV Format of MDPA, Clause 4. 3.1 Upon occurrence of an Appropriation Event, to be determined by the State Government, the State Government shall have the unconditional right to appropriate the Performance Security by providing a written notice to the Successful Bidder in the following proportion Table 4.3.1(2) Failure of successful bidder to comply with minimum production requirement under clause 8

Schedule IV: Format of MDPAClause 7.1.1The successful bidder shall make monthly payments on the basis of the final price offer (the monthly Payment). The monthly payment shall be computed on the basis of value of mineral dispatched or the value of minimum production requirement as specified in clause 8, whichever is higher Clause 8.1 The conduct of mining operations at the Lease Area shall be subject to the milestones listed in SCHEDULE E with respect to production (the “Production Requirement”) and the minimum annual production to be achieved every year.

If the final mineable reserve has substantial change due to geological , core recovery and other factors then performance security and minimum monthly payment shall be modified or not ?

Bidder has to adhere min.annual production requirement as specified in Schedule E of MDPA

13 12. Timetable – Stage I and Stage II Any specific time limit between stage I and stage II

Will be decided by State Govt. after examining the relevant issues on case to case basis.

14 12 Time tableSr. No. 18. Submission of mining plan by the Preferred Bidder to become Successful Bidder.

1. For preparing mining plan a large no of base line date is required like topographic survey, detailed geological report, sections and base line environmental data ( at least one quarter) , Will the same be provide by GoR, if not than time line of 6 month is not sufficient


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15 Clause 9.1The reserve price is 12% of value of mineral despatched as per IBM.What is the basis of 12% for thie Block, whereas it is different for other blocks?

This is arrived based on internal assessement which cannot be disclosed. Bidder has to excerise his own assessment while bidding

16 Schedule -V Information memorendumAs per existing Court order no Charaghah land could be diverted for other purposes including mining.


17 Schedule -V Information memorendum

Whether th state Government will help in acquireing the private land under the land acquisition act?

The successful bidder have to obtain all statutory licenses, permits, permissions, concessions, approvals and consents related to mining operations.

18 As per MMDR Act 1957 Section 6 (1)(b) No person can acquire in a State one or more mining leases covering a total area of more than ten square kilometer. In case of Exceeding this limit whether the permission from Central Government is required or not. After becoming successful bidder if area

Required

19 MDPA Schedule - EMinimum annual production third year onward 4.77 mt. has been mentioned. On what basis this production limit has been arrived.

This is arrived based on internal assessement which cannot be disclosed.

20 MDPA Schedule - EMinimum annual production third year onward 4.77 mt. has been mentioned. Whether the limestone to be sold for any other purpose

Yes, as no end use has been specified for the block

21 MDPA Schedule - EProduction schedule starts just after MDPA. The mine requires Monitorial period for land acquisition, Instalation of cement plant , other infrastructure etc.


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22 Clause 15 (e) (iii) of Schedule V – information Memorandum: -“The Geological resource estimated considering the thickness of formation encountered in drilling. A total of 290.76 million tones of resources under G2 (332) category have been estimated with average CaO 47.56%), SiO2 4.84 % and MgO 2.67%.” Query/Suggestion : What is the mineable reserve in this block?

Auction is being conducted on estimated mineral resource as per Mineral (Evidence of Mineral Contents) Rule 2015 and Mineral Auction Rule 2015

23 The tender document defines Upfront Payment in clause 2.13 as “an amount equal to INR 68,47,39,800/- (Indian Rupees Sixty Eight Crores Forty Seven Lakhs Thirty Nine Thousand Eight Hundred Only) payable pursuant to the Auction Rules.” Further the Mineral (Auction) Rules, 2015 define Upfront payment as “An amount equal to 0.50% of the value of estimated resources” and value of estimated resources is defined as an amount equal the product of, -(i) the estimated quantity of mineral resources for which the mineral block is being auctioned, expressed in metric tonne; and (ii) the average price per metric tonne of such mineral as published by Indian Bureau of Mines for the relevant State for a period of twelve months immediately preceding the month of computation of the Value of Estimated Resources. Query/Suggestion : Upfront payment should be based on value of mineable reserves.


24 Clause 13 of the Tender document states that the holder of mining lease shall make monthly payments with respect to the Value of Mineral Despatched or the minimum production requirement as specified in the MDPA, whichever is higher. Query/Suggestion : The minimum production requirement calculation methodology to be spelt out. Further it is suggested that the minimum production requirement to be calculated on the basis of mineable reserves if not already being done.


25 Clause 1.8- “The issue of this Tender Document does not imply that the State Government is bound to select a Bidder or to appoint the Preferred Bidder as Successful Bidder for the mineral block and the StateGovernment reserves the right to reject all or any of the Bidders or bids without assigning any reason whatsoever.”


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26 Clause 12 – Timetable Point 17 and 18

It should be clarified as to why the State Government has departed from the timetable provided in the Auction Rules, 2015 with respect to declaration of preferred bidder as successful bidder. In this document the acknowledgment of successful bidder is dependent on the date of submission of clearances which is not so as per the Auction Rules, 2015

Please refer Corrigendum # 1

27 Clause 14.11.1- Rejection of bid –“Notwithstanding anything contained in this Tender Document, the State Government reserves the right to reject any bid and/or to annul the tender process and reject all bids at any time without any liability or any obligation for such acceptance, rejection or annulment, and without assigning any reasons thereof.”


28 Point 5.0 of Part C of Schedule V of the Tender Document “• Charagah/ Pasture Land - Harima Pithasar Block 3D: 23.34 Hectares”

Kindly Clarify whether the State Government can allot such portion of the land for mining activity?Also, whether in case of such land a swap exchange of the same is permitted by the State Government?


29 Point 2.0 of Part-A Schedule V- Information Memorandum It should be clarified as to what can be done with large part of the land being a non- mineralized area?Also, whether the non- mineralized land can be used for storage raw material for use in Cement plant, construction of Cement plant, Logistic facilities for transport, housing facilities for the employees of the lessee etc.


30 Clause to be added

As no specific information regarding the discovery of new major minerals, minerals specified in Part-B of the MMDR Act, 1957 or discovery of minor mineralsubsequent to grant of mining lease is provided in the tender document, we understand that Rule 7 and Rule 21 of the mineral auction rules shall be exercised in such circumstances. Kindly clarify that the above stated is correct.

Please refer clause no. 8.2 of tender document read with Mineral Auction rules 2015.

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31 Schedule I clause B (1)(c) “The corporate authorisation of the authorised signatory of the Bidder (which is a company) must be enclosed with the bid letter. It is recommended that the Bidder may authorise one person to deal with all matters related to bid. However, if the Bidder has authorised more than one person, then the corporate authorisation of all such persons should be enclosed. Any change in such corporate authorisation must be immediately intimated to the State Government.”

In case the bidder has authorized more than two persons, then how will multiple digital signatures be allowed on the MSTC portal. Kindly clarify the requirement and use of DSCs in case of multiple authorized signatories.

Please refer last para at page no. 51 of 166 (Schedule III of tender document).

32 Schedule to be added

Kindly provide the content and format of the Letter of Intent to be issued to Preferred Bidder.

Letter of Intent shall be issued as per Mineral Aucton Rules 2015

33 Value of Estimated Resource is determined based on the total estimated quantity of mineral resources for which the mineral block is been auctioned. However, estimated limestone resource for which the block is auctioned in the Tender Document is given irrespective of its use in Cement manufacturing. In the mine plan, the cement grade mineable reserve based on NCCBM norm could vary significantly than the quantity stated in the Tender Document. Kindly clarify on how the discrepancy will be resolved particularly w.r.t:1. Minimum Annual Production Requirement2. Total Mineable Reserve3. Upfront Payment linked with Total Value of Estimated Mineral Resource4. Performance Security linked with Total Value of Estimated Mineral Resource

Auction is being conducted on estimated mineral resource as per Mineral (Evidence of Mineral Contents) Rule 2015 and Mineral Auction Rule 2015

34 Clause 12 – Timetable- Stage II Point 1: “Submission of all necessary clearances /approvals from various government agencies /departments by Successful Bidder”

Kindly clarify whether there is any time period for taking necessary approvals/ clearances that are mentioned in the Information Memorandum of the Tender Document after submission of the mining plan. Also, kindly clarify on how the Government will facilitate Successful Bidder in obtaining various approvals at State and Central Government level in a time bound manner.

Will be decided by State Govt. after examining the relevant issues on case to case basis.

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35 As per our understanding, the time period for development of mine after registration of mining lease, will be as per the approved mine plan. Kindly confirm whether the above understanding is correct.


36 Clause 13.1: “The Upfront Payment paid by the Successful Bidder shall be adjusted in full against the amount payable in accordance with the percentage of Value of Mineral Despatched quoted as the Final Price Offer within the first 5 years of commencement of production of mineral(s).”

Kindly clarify whether the time period i.e. 5 years of commencement of production of mineral(s) can be extended further in case the Upfront Payment does not get adjusted within the time period mentioned in Clause 13.1.

The clause no. 13.1 is self explainatory.

37 Clause to be added Kindly clarify whether the Government Land will be automatically transferred to the Successful Bidder after execution of mining lease.

No Land title of Govt. Land shall be transferred.

38 NA

Kindly clarify if there is any provision to surrender unutilized lease area.

Will be governed as per provisions of MCR 1960 & MMDR Act 1957 and amended from time to time .

39 Clause 3 (e)- Schedule F- Mine Development and Production Agreement: “there are no actions, suits, proceedings or investigations pending or to the Successful Bidder’s knowledge threatened against it at law or in equity before any court or before any other judicial, quasi-judicial or other authority, the outcome of which may constitute an event of default hereunder;”


40 Clause 3 (f)- Schedule F- Mine Development and Production Agreement : “The Successful Bidder has neither violated or defaulted nor has knowledge of any violation or default with respect to any order, writ, injunction or any decree of any court or any legally binding order of any Governmental Authority”

Since, the bidder is already complying with the specific provisions the Tender Document, the mentioned provision which is asking to provide an umbrella warranty covering any violation or default against any decree of any court or binding order of any Governmental Authority should not be covered under warranties.


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41 Clause 8.1- “The conduct of mining operations at the Lease Area shall be subject to the milestones listed in SCHEDULE E with respect to production (the “Production requirement”) and the minimum annual production to be achieved every year.”

Kindly relax the provisions regarding Minimum Annual Production mentioned in the Tender Document and link the Minimum Annual Production to the requirement of End Use Plant

Bidder has to adhere min.annual production requirement as specified in Schedule E of MDPA

42 Clause 5 (d): “Not Applicable”

Kindly reserve the Concession Area for particular End Use.

No, no end use has been specified.


Kindly have separate policy for determination of sale price of limestone published by IBM for captive purpose and for commercial purpose.Alternatively, the IBM Price should be capped at wholesale price index inflation rate.



Kindly provide the methodology/ basis of the sale price of mineral (grade-wise and state-wise) as published by IBM for such month of despatch in the Tender DocumentAlso, kindly add a provision to recognise change in methodology/ basis of the sale price of mineral (grade-wise and state-wise) as published by IBM for such month of despatch as Change in Law.Further, kindly add a provision to protect the interest of bidders from potential risk in the event of Change in Law.



The State Government should appoint a Nodal Officer or Authority in the State for each mineral who shall be responsible to take decisions on behalf of the Government and facilitate the entire process process including consents, approvals, land acquisition etc.

Addition of new clause is not required

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46 General

Kindly clarify the role of the State Government or Nodal Officer in facilitating procurement of land for setting up the Specified End Use Plant

No end use has been specified.

47 General

Kindly clarify whether the Successful Bidder will be allowed to transport the mined mineral outside the State boundary.

Yes, as no end use has been specified for the block

48 Information MemorandumGeological report has not been provided as part of the Information Memorandum request you to kindly provide the same.

Interested bidder may purchase detailed Geological report from Publication cell of the Department.

49 GeneralKindly clarify, the year from which the requirement for achieving Minimum Required Production will be as per mining plan

Please refer Schedule E of MDPA

50 Clause 13.1: “The Upfront Payment paid by the Successful Bidder shall be adjusted in full against the amount payable in accordance with the percentage of Value of Mineral Despatched quoted as the Final Price Offer within the first 5 years of commencement of production of mineral(s).”

We understand that after commencement of production, the Successful Bidder will not be required to pay any monthly bid payment to the State Government till the Upfront Payment made is adjusted in full. Once the full Upfront Payment has been adjusted, the Bidder will make monthly bid payment as per the Agreement. Kindly confirm if the above understanding is correct.

The clause no. 13.1 is self explainatory.

51 Schedule E of Schedule IV – MDPAMinimum annual production requirements (4.77 MT from 3rd year and onwards) is given but the basis of claculation is not discussed.

This is arrived based on internal assessement which cannot be disclosed.

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52 Point 12 of Reporting of Mineral Resources in Schedule V

DMG reported that 5% check sample analysis has been carried out but the details of samples analysed not available in Tender document. As per Minerals (Evidence of Mineral Contents) Rules, 2015, “Check analysis of atleast 10% of samples may be analysed from third party NABL, accredited/or department of science and technology (DST) / BIS recognized laboratories or government laboratories for assessing the acceptable levels of accuracy.”


53 Schedule V Information Memorendum

The impact of poor core recovery has not been discussed in the Tender document, which is an important criteria for the resource estimation in the area.

Dully considered while estimating the resources.

54 This has with respect to the Limestone Blocks put for auction, the detailed geological report has not been provided as part of the Information Memorandum. We request you to kindly arrange to provide the same. It will help the bidder to understand urgent basis

Interested bidder may purchase detailed Geological report from Publication cell of the Department.

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corrigendum # 1 to tender document and reply to …...harima pithasar, block-3d document no.:...

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