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Indian iron ore mining mess - SC allows e auction of iron ore stocks in Karnataka
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Saturday, 03 Sep 2011
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The India’s Supreme Court has accepted the Central Empowered Committee's recommendation that out of 25 million tonne of iron ore stock from Bellary, Chitradurga and Tumkur in Karnataka, a quantity of 1.5 million tonne per month be sold through e auctions which will not be used for export.

The CEC report, accepted by the court, said lease wise and grade wise reserve price for iron ore for bidding will be fixed after considering the sale price obtained by National Mineral Development Corporation.

The bench headed by Chief Justice SH Kapadia, however, clarified that the part of report stating that modalities recommended for iron ore sale will also apply to manganese ore will not apply to leases which are exclusively for manganese ore.

The special forest bench also comprising of Justice Aftab Alam and Justice Swatanter Kumar said “The CEC report submitted on September 1, recommending is accepted subject to following clarification that para five (dealing with sale of manganese ore) will not apply to leases exclusively to manganese ore.”

The CEC, in its report, had said, "The quantity of 1.5 million tonne of iron ore per month will be sold and this quantity will be sold through e-auction(s). For this purpose, the mining lease wise and/or grade -wise reserve price will be fixed after taking into consideration the sale price obtained or fixed by NDMC. Only steel and associated industries who have been wholly or partly dependent on iron ore from Karnataka for their own use, will be eligible to participate in the auctioning and no export will be permissible. Units involved in pelletization and beneficiation may be allowed to participate in the e-auction provided that the iron ore so purchased after processing is made available to the steel and associate industries and no export will be permissible. E-auctioning should be conducted by the MSTC and suggested that for its services, a service charges of 0.3% be fixed.

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