<div><em>Union Mines Secretary <strong>Balvender Kumar</strong> in an interview with BW|Businessworld's <strong>Suman K Jha</strong>, holds forth on the upcoming auction of various mineral blocks, and hopes that the iron ores mines would fetch a good amount:</em></div><div> </div><div><strong>Excerpts:</strong></div><div> </div><div><strong>Various mineral producing states have identified 80-90 blocks that will be auctioned by November. The Centre is hand-holding the states. What’s the status of the auctions?</strong></div><div>Nearly 80 blocks in 8 to 9 states shave been identified. Currently they are under the process of differential GPS. Once that is finished, they will start work on documentation etc. and other steps required for auction. Hopefully by the second or third week of November, they will issue an NIT (notice for tender) for auction. Once that’s done, it will take another two to three months to complete the auctioning and other formalities.</div><div> </div><div><strong>And the Centre is hand-holding the states…</strong></div><div>Where the states have demanded, we are carrying out the hand-holding exercise. Some states have asked us for survey.</div><div> </div><div><strong>Spectrum auction and coal block auctions were huge hits. Will the coming mines auction be another such blockbuster?</strong></div><div>We can’t say at this moment. Some of the states are having iron ore mines like Karnataka. They are going to auction all the 15 mines of iron ores. Certainly that should fetch a good amount. For other states, it’s sort of a mixed bag. Many blocks are for limestone and other minerals. So, at this point, it’s difficult to assess and say about the potential of total auction amount.</div><div> </div><div><strong>You talked about the Karnataka’s iron ore mines. What used to happen in places like Bellary will be a thing of the past?</strong></div><div>After so many court decisions and the Shah Commission, so many developments have taken place. I don’t think it would be possible now to revert to the pre-Jan 2015 situation in the district in the state.</div><div> </div><div><strong>Why did the value of mineral production in India come down from Rs 285761 crore in 2012-13 to Rs 227000 crore in 2013-14?</strong></div><div>This is primarily because the prices of iron ores, aluminium, bauxite have fallen down in recent times in international market. The prices of primary metals like steel, aluminium, copper, zinc -- all have fallen. That must be the reason why the total value of the mineral production has come down in last one year.</div><div> </div><div><strong>Do you have a target or figure – by this year we would be able to auction this value of minerals in the country?</strong></div><div>Right now exact details are not available with us or the states. Once the survey exercise is over, the states will come to know of the reserve prices. Once the reserve prices are known, we can say that this much money is expected through auctions.</div><div> </div><div><strong>A report by Ernst and Young and the Federation of Indian Mineral Industries says that the government should complete exploration of mines before auctioning and the Geological Survey of India has been unable to complete the exploration for most minerals. What do you have to say on this?</strong></div><div>For the blocks that are going to be auctioned, the exploration exercise has been done. GSI or MSEN or in some cases state governments – they have carried out the exploration to the extent required.</div><div> </div><div><strong>You are also floating global tenders for the aerial geographical survey of mineral rich states. What’s the status now?</strong></div><div>We want the primary survey for exploration should be completed in the next three to four years. So that after that a detailed exploration can be started wherever there’s a possibility. At present we are not too sure about the areas, though we know that these are the potential core areas for minerals, but exactly in which areas the minerals are located, we don’t have that much of an idea. So we feel that once this aerial geophysical and electromagnetic survey is carried out then detailed and regional exploration can be taken up. This will be for the first time that global tenders are being floated.</div><div> </div><div><strong>Why did Rajasthan, Maharashtra and Gujarat say they would manage the mines on their own? How is the Centre coordinating with them?</strong></div><div>Some of the states are carrying out surveys themselves. Either they have engaged agencies/ outsourced surveys to agencies or their own staff is carrying out total station survey and differential GPS.</div><div> </div><div>Where they don’t have adequate manpower or technical expertise, there they have asked us to provide. In turn we have requested Mecon to depute some empanelled agencies.</div><div> </div><div><strong>Gold mines too are being auctioned…</strong></div><div>Out of the 80 blocks that we’re are targeting, there are two-three blocks of gold.</div><div> </div><div><strong>What about the Kolar gold mine?</strong></div><div>Kolar gold mine is closed. We are examining the matter and we will take some decision shortly.</div><div> </div><div><strong>Any other latest development on this front?</strong></div><div>Mining tenement system. We have floated RFP (request for proposals). We expect the vendor to be finalized in the next one and a half months. Under this MTS from one end to another, all the processes and all the steps would be computerized and automated.</div><div> </div><div>Some states have taken some steps in this like Odisha. The state has automated its system. We want to have all-India automated, computerized application system.</div><div> </div>
