mineral blocks for auction in 2018-19 · consistently leader in eodb 2017 top achiever state. 12...

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INDUSTRY

4th National Conclave on Mines & Minerals Indore, Madhya Pradesh July 13th 2018 , Mineral Blocks for Auction in 2018-19

Presentation by: Government of Chhattisgarh Mineral Resources Department

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Structure of the Presentation

Introduction to the State

Chhattisgarh Advantage

Status of blocks auctioned till date

Proposed mineral blocks for auction for 2018-19

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Chhattisgarh :A resource rich state in central India

• Carved out from erstwhile state

Madhya Pradesh on 1st Nov. 2000 as

26th state of the union.

• Area: 1.35 lakh Sq. Km.

Occupies ~4%

Produced ~16% of total value of

minerals in India. [i.e. CG: ~Rs

22,700 Cr. FY17]*

• 28 major minerals including Coal, Iron

ore, Limestone, Bauxite etc.

District 27

Blocks 146

Tribal Blocks (scheduled area) 85

Villages 20279

Area 1.35 Lakh sq. km.

Population (as per 2011

census)

Population Density

2.55 Cr.

189 (National 324)

*Source: IBM

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Chhattisgarh : Success Profile

To Realize#

27,156 Cr Total Revenue to Government

Highest Success Rate

71%

of Mineral Auctions in India

Highest FPO

@138.25% For Limestone blocks in India

1st State

To auction non-coal Mining Lease

1st State

To auction Gold block 1st State

To auction Minor Mineral Lease

Chhattisgarh has raised the bar

INDUSTRY

Leading Mineral Producer of India • Contributes* 21.16% Coal,

16.17% Iron ore, 10.19% of Limestone & 7.92% of Bauxite production of India (*2016-17 figures)

1st State

Formation of DMF Trust in all 27 districts and Implementation on PMKKKY

1st State

To organize National Conclave on Mines & Minerals

1st State

To Implement NMET

1st State

To Implement Khanij Online – A web based auto approval and single click multi head payment facility portal for end to end tracking

* Department Data

**Source: IBM Nagpur

# Revenue includes royalty, auction premium, DMF and NMET. Source: Ministry of Mines

Mineral Revenue 2017-18

1st

+4911* Cr

+9%

Production in Coal (2016-2017)

Contribution of minerals in state’s GDP

Value of mineral produced in India (2016-17) 2nd

2nd Production in Iron ore (2016-2017)

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Chhattisgarh- Investment Advantage

Marginal increase in share of mining contribution in India’s GVA from 3.2% in FY12 to 3.3% in FY17

Marginal decrease in share of mining contribution in Chhattisgarh’s GVA from 13.3% in FY12 to 9.8% in FY17

Investment Advantage - Chhattisgarh

Policies and

Regulations

Skilled Manpower

Location and

Connectivity

Mineral

Industries

Investors

Facilitation

Mineral

Resources

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Chennai

Kolkatta

Ahmedabad

Bhubaneswar

Lucknow

Delhi

Mumbai

Bangalore

Indore

Hyderabad

5 cities of Chhattisgarh : 1) Ambikapur 2)

Bilaspur, 3) Jagdalpur 4) Raigarh 5) Raipur

are connected with

Andhra Pradesh (Vishakhapatnam) and

Odisha (Jarsuguda & Utkela)

Location and Connectivity : Land Locked State but well connected by Air and by Road

Bhopal

UDAN (Ude Desh ka Aam Nagrik)

Launched by Hon'ble PM on 14th Jun’18

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Connectivity- Railways

New projects will ease movement of minerals

Ongoing Rail Project: Beneficial commodities

East Rail Corridor (164 KM) Coal, Cement, Steel,

Aluminum, Bauxite East West Rail Corridor(136KM)

Dalli Rajhara-Rowghat (95 km) Iron ore, Steel

Rowghat-Jagdalpur (140 KM) Iron ore, Steel

Existing Rail Network

Total length 1196 KM

Rail Density (km/ 100 sq. km area) 0.89

National Avg. (km/ 100 sq. km area) 1.95

Districts connected 16/ 27

Future Rail Project: Beneficial

commodities

Dongargarh–Khairagarh

Kawardha–Mungeli–Kota-

katghora linking Bilaspur (270 km )

Coal, Cement, Bauxite,

Iron ore

Kharsia-Naya Raipur-Durg via

Baloda Bazar (240KM)

Coal, Cement, Clinker,

Steel, Limestone

Chirmiri-Nagpur Road Halt (11km) Coal

Along with minerals, rail projects are also beneficial for the passengers as well.

Bilaspur

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Mineral Resources:

Endowed with 28 different types of minerals

Important

Mineral

Total

Resources

in India

Total

Resources in

Chhattisgarh

% of

Resource in

India (FY16)

Dolomite (Mt)2 8085 919 11.4%

Tin Conc. (Mt)2 83.72 30 35.8%

Coal (Mt)1 301564 52533 17.4%

Iron ore (Mt)2 20575 4031 19.6%

Bauxite (Mt)2 3739 168 4.5%

Limestone (Mt)3 184935 8959 4.8%

Diamond (million

carats)2 31.86 1.3 4.1%

Gold (Tonne)2 494 5.0 1.0%

Source: Statistics of Mineral Production, March, 2016, Indian Bureau of Mines.

1) Includes Reserves and Resource as on 1.4.2014



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Resource & Production

Iron Ore Dolomite Tin Limestone Bauxite

India's 20575 8085 102275 184935 3739

CG 4031 919 15487 8959 168

Share of CG in Mineral Reserves, 2016-17 (in MT)

21% of India’s coal production in CG 16% of India’s iron ore production in CG 15% of India’s Tin production in CG 10% of India’s limestone production in CG 8% of India’s bauxite production in CG

19.6% of India’s iron ore reserves in CG 15% of India’s Tin reserves in CG 11% of India dolomite reserves in CG 4.8% of India’s limestone reserves in CG 4.5% of India’s bauxite reserves in CG

Coal Iron Ore Limestone Bauxite

India's 697 192 313 25

CG 139 31 32 2

Share of CG in Mineral Production, 2016-17 (in MT)

Source: Ministry of Mines, CG Data Source: Indian Mineral Yearbook 2013, CG DGM Website

Chhattisgarh’s contribution in mining sector in India is significant

10 Source: CG State Government Policy and Notifications

Policies for Investors’ facilitation

Investor friendly and progressive policies

Incentives, subsidies and exemptions:

Interest Subsidy and fixed capital investment subsidy (upto 70%)

Electricity duty exemption (Upto full exemption)

Stamp duty exemption

Exemption in land premium (upto 50%)

Exemption from entry tax (upto 7 years)

Other incentives/subsidies for SC/ST category

Single Window clearance

Industrial

Policy 2014-19

Mineral Policy

Objectives

Promoting Value Addition and Mining Development

Institutional Development and Regulatory Reforms

Sustainable development and use of the State's mineral wealth

Creation of a conducive business environment to attract private

investment (domestic/international)

Complete transparency in decision-making

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EASE OF DOING BUSINESS

Chhattisgarh –

a magnet for

business

Transparent

process Single window

Availability of

land

Construction

permit enablers

Environmental

registration

enablers

Fully

computerized

mineral

administration

Ease of Doing Business

Top Achievers

2015 2016

Consistently Leader in EoDB

2017 Top Achiever State

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Chhattisgarh has a high worker-participation rate (both

male and female).

The state has one of the lowest reported losses of man-

days attributed to labour problems in the country.

Recently, the Government introduced online registration

for its workers.

Description Nos.

Universities (State, Central,

Private)

17

Management colleges 23 including IIM Raipur

IIT/ NIT 2 (IIT Bhilai & NIT Raipur)

Engineering/Diploma colleges 95

ITIs 178

Other colleges

(Government/Others)

461

Source: Economic Survey of Chhattisgarh 2017-18, Department of School Education, Chhattisgarh, AICTE

Employment Generated in last 15 years

(Private Sector + Self employment Schemes):

27,87,970

Manpower and Resources

Abundant availability of skilled and semi-skilled manpower

1st State to formulate

"Right to Skill Act" 2013

Livelihood College 27

Skill Courses offered - 804

Skill Upgradation - every year -

Till Now -

1.5 Lakh

4 lakh

No labour Unrest

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Chhattisgarh State- Mineral Based Industries

Source :

1. SIMA, Steel Mint Report 2017

2. Company Annual Reports, Website

3. Research, CEA

4. IBEF Report, June 2018, Annual reports of the companies

5. Survey of Cement Industry and directory 2017

Mineral Based Industries :

Chhattisgarh is home to large manufacturing industries

Chhattisgarh - 9.1 MTPA

India - 52.1 MTPA1

18% | Sponge Iron

Chhattisgarh - ~21 GW

India - ~222GW 3 10% | Thermal Power

Chhattisgarh - ~10 MTPA

India - 134 MTPA4 8% | Crude Steel

Chhattisgarh - ~27 MTPA

India - ~500MTPA5 5% | Cement

15% | Aluminum Chhattisgarh - 0.57 MTPA

India - 3.96 MTPA2

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Minerals Auctions till now:

Five blocks successfully auctioned

SN Block Name Mineral Concession

Type

Estimated

Value of

Recourses*

(Rs. crore)

Final Bid

%

Expected

time of

obtaining all

clearances

1 Baghmara, Balodabazar-

Bhatapara Gold PL cum ML 110.4 12.55%

April ’ 2018

(Ext

proposed)

2 Kesla, Raipur Limestone ML 887.2 10.15% March’ 2019

3

Karhi Chandi,

Balodabazar-

Bhatapara

Limestone ML 5802.1 58.95% March ’ 2019

4 Kesla- II, Raipur Limestone ML 11894 96.15% May’ 2020

5

Guma block, Palari,

District, Baloda Bazar -

Bhatapara

Limestone ML 8499.6 138.25% April’ 2021

Total Rs 27,193 Cr

Source: Ministry of Mines, Recourses includes royalty, auction premium, DMF and NMET

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Minerals Auctions

Comprehensive approach to enhance bidders’ interest

Chhattisgarh Govt. treat this as an

“Investor Event” rather than as

an “Auction related event” Proactively addressed all

issues raised by bidders through

pre-bid queries whether

submitted before or after the

query submission deadline.

Timeline & Production in MDPA kept at

a proportionate level

Eligibility criteria designed keeping

in mind potential bidder’s interest, yet

blocking non-serious players

Not keeping any restrictions with

respect to size or location of

Clinker or Cement plants.

Experience in any mineral sought

for Gold block

Tender document cost kept

at a nominal price

Used a discounting factor to

arrive at Net Limestone Mineral

Resource. Not including barriers

like Villages, Roads, etc. while

calculating Net Mineral Resource

Reserve price was fixed at

nominal level. Real price

discovery would ultimately to

be done by the market

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State Handholding

LOI Grant LOI issued from administrative department i.e. MRD

Tender Committee for auction chaired by Director, DMG

Online interface from LOI stage. From preferred bidder stage under process

LOI issuance time after payment of 1st installment of Upfront Pay./ Per.

Security :

Kesla Karhi Chandi Kesla II Guma Baghmara (CL)

17 days 20 days 27 days 22 days 43 days

Clearances Secretary (Mining)/ DGM regularly co-ordinates with different departments

for speedy clearances i.e. forest, revenue, environment.

Land

Acquisition

Chief Secretary (Chhattisgarh) regularly monitors the subject with district

collectors.

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Proposed Mineral Blocks for Auctions in FY 2018-19

*Provisional figures

SN Block Name District Mineral Resources* (MT) Concession Type

1 Kandraja Surguja Bauxite 4.65 ML

2 Sapandar Surguja Bauxite 7.00 ML

3 Pathrai & Pathrai East Surguja Bauxite 4.13 ML

4 Sarbhanja Surguja Bauxite 1.93 ML

5 Salgi Kabirdham Bauxite 1.75 ML

6 Kukurdih Balodabazar-

Bhatapara Limestone 155.0 ML

7 Kathia-Pachari Raipur Limestone 150.0 ML

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Location of the Proposed Blocks in FY 2018-19

Limestone

Bauxite

GSI Blocks

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Kandraja (Bauxite), Surguja

Lease Area Map – Land Types MINERAL BLOCK FEATURES

Total Area 135 Ha

MINERAL RESOURCES

Total Mineral/s resources (MT) 4.65 MT

IBM ASP of Mineral Awaited for Average Sale Price

Estimated Value of Resources at IBM

ASP Awaited for Average Sale Price

(Grade of Mineral) & (Resources) Metal Grade- 4.65 (>40% Al2O3,

SiO2 <4%)

EXPLORATION STATUS

Exploration Level(G2/G3/G4 etc.) G2

Exploration Agency (GSI/DMG/MECL) DGM, Chhattisgarh

Number of Boreholes and drilled

meterage

291

3128 M

KEY FEATURES

Water Availability (River/Other Source) Seasonal Streams/ Ground water

Nearest Highway Distance (km) &

Connectivity (SH/NH) National Highway 13 Km (aerial Distance)

No. of same mineral mines in 50 km

radius (no of mines) and their total

yearly production (MT)

Fourteen (14)/ 10.36 Lakh Tonne per anum

Mineral Demand prospect in 20 / 30

years High

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Sapnadar (Bauxite), Surguja

Lease Area Map – Land Types

MINERAL BLOCK FEATURES

Total Area 164 Ha

MINERAL RESOURCES

Total Mineral/s resources (MT) 7.0 MT




(Grade of Mineral) & (Resources) Metal Grade- 7MT (>40% Al2O3,

SiO2 <4%)

EXPLORATION STATUS




meterage

190 Bore Hole

2092 Meter

KEY FEATURES

Water Availability (River/Other

Source) Seasonal Streams- Joka Nala, Kalijba Nala


Connectivity (SH/NH)

National Highway 16.5 Km (aerial

Distance)




Fourteen (14)/ 10.36 Lakh Tonne per

anum


years High

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Patharai & Pathrai East (Bauxite), Surguja


* Provisional Figure


Total Area 238* Ha

MINERAL RESOURCES

Total Mineral/s resources (MT) 4.13* MT




(Grade of Mineral) & (Resources) Metal Grade- 4.13* (>40% Al2O3,

SiO2 <4%)

EXPLORATION STATUS




meterage

819 Bore Hole

8678.75 Meter

KEY FEATURES

Water Availability (River/Other Source) GR Not Available








years High

22

Sarbhanja (Bauxite), Surguja




Total Area 286* Ha

MINERAL RESOURCES





(Grade of Mineral) & (Resources) Metal Grade-1.93* (>40% Al2O3,

SiO2 <4%)

EXPLORATION STATUS




meterage

430 Bore Hole

4549.8 Meter

KEY FEATURES









years High

23

Salgi (Bauxite), Kabirdham




Total Area 59.31* Ha

MINERAL RESOURCES



Estimated Value of Resources at IBM ASP Awaited for Average Sale Price

(Grade of Mineral) & (Resources) Metal Grade- 1.75* (>40% Al2O3,

SiO2 <4%)

EXPLORATION STATUS




meterage

195 Bore Hole

2131.90 Meter

KEY FEATURES

Water Availability (River/Other Source) Streams including few perennial streams


Connectivity (SH/NH) State Highway 19 Km (aerial Distance)




Three (3)/ 6.6 Lakh Tonne per anum


years High

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Kukurdih (Limestone), Balodabazar-Bhatapara




Total Area 405 Ha*

MINERAL RESOURCES

Total Mineral/s resources (MT) 155* MT

IBM ASP of Mineral 404.5**

Estimated Value of Resources at IBM ASP NA

(Grade of Mineral) & (Resources)

Cement Grade - 112* MT (>44% CaO),

Cement Blendable - 43* MT (CaO

38% to 44%)

EXPLORATION STATUS




meterage

60

1607.75 M

KEY FEATURES

Water Availability (River/Other Source)

Major River- Mahanadi

Tributaries- Jamuniya Nad, Chitwar & Khorsi

Nala



State Highway 6 Km, 92 Km from Raipur,

Connected through metalled road




Forty (40)


years High

** Average of June 17- April 18 of IBM published prices

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Kathia-Pachari-Bharuadih (Limestone), Raipur




Total Area 309* Ha

MINERAL RESOURCES

Total Mineral/s resources (MT) 150* MT

IBM ASP of Mineral 404.5**


ASP NA

(Grade of Mineral) & (Resources) Cement Grade- 150 MT (CaO > 44%)

EXPLORATION STATUS




meterage

46 Bore Hole

1619.8 Meter

KEY FEATURES




State Highway 4 Km, Connected through

metalled road




Sixteen(16)


years High

** Average of June 17- April 18 of IBM published prices

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GSI Explored Blocks

Details Area (in Ha.)

Resources (in Mt.)

Grade

Borehole Spacing

Exploration/Borehole

No.

Status

Pakhritola North

(BAUXITE)

49.23 1.1

Metal Grade-1.1 mt

100 m

G2/ 77

Being Considered for auction.

Pakhritola

South (BAUXITE)

66.13 2.02 Metal Grade- 1.82 mt

100 m

G2/84

Jagmadwa-Hanaibandh-Mardkathera (LIMESTONE)

280.00 52.73

Cement Grade- 33.76 mt Cement

(Blendeble/ Beneficaible) -

18.97 mt

200 m

G2/64

Subject to PFS

Birutola-

Nawapara-Sohagpur

(LIMESTONE)

270.00 7.73

Cement Grade- 5.62 mt Cement

(Blendeble/ Beneficaible) –

2.11 mt

200 m G2/31

Alarmelmangai D. (I.A.S.)

DIRECTOR,

Thank You

Directorate of Geology & Mining, Chhattisgarh : Block-IV, 2nd Floor, Indravati Bhawan, Naya Raipur, Chhattisgarh Ph. : 0771-22218 40,44,49 Fax. 0771-2221841 E-mail : [email protected], [email protected] Log on : Department Website : www.chhattisgarhmines.gov.in Khanij Online Portal : https://khanijonline.cgstate.gov.in/ DMF Portal : http://www.dmf.cg.nic.in/ NERP Portal : http://www.dgmcgnerp.com/

mailto:[email protected]

mailto:[email protected]

http://www.chhattisgarhmines.gov.in/

https://khanijonline.cgstate.gov.in/

http://www.dmf.cg.nic.in/

http://www.dgmcgnerp.com/

mineral blocks for auction in 2018-19 · consistently leader in eodb 2017 top achiever state. 12...

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