MSTC Ltd.: October 2016

Monday, 31 October 2016

Thursday, 27 October 2016

Launching of MSTC Metal Mandi "M3" Portal

The Minister of State for Steel, Shri Vishnu Deo Sai launching the MSTC Metal Mandi “M3” Portal, on the occasion of the National seminar on “Steel making through Induction furnace route: current challenges and future prospects”, organised by the All India Induction Furnaces Association (AIIFA), in New Delhi on October 22, 2016. The Secretary, Ministry of Steel, Dr. Aruna Sharma and other dignitaries were also present.

MSTC METAL MANDI “M3”, an e- shopping mall, is a virtual market place providing B2B & B2C facility for sale and purchase of iron, steel and Non Ferrous products especially for small and medium sector manufacturers. Registration on “M3” website (URL: www.mstcecommerece.com/m3) is going on. Seller Registration is free of cost for “Early Birds” for a limited period. Buyer registration is also free of cost. MSTC may provide training and support for this new solution that ensures improvements in sale and customer satisfaction.

Buyer registration is also free of cost. MSTC may provide training and support for this new solution that ensures improvements in sale and customer satisfaction.

Wednesday, 26 October 2016

Published in The Times of India, New Delhi Edition, 22nd October, 2016

Tuesday, 25 October 2016

Friday, 21 October 2016

Tuesday, 18 October 2016

MSTC Limited
Conducted E-Auction for iron ore mines in Bellary district of Karnataka

Iron ore: Bellary mines go under the hammer at premium rates

With the demand in steel sector picking up, Karnataka’s seven iron ore mines in Bellary district have been auctioned this month at a premium rate.

The final bid for the iron ore mines in Karnataka was in the range of 59 to 111 per cent of the floor price — which is monthly value of the mineral dispatched from the mine. JSW group — whose firm JSW Steel is the largest steel company in the country — won five iron ore mines in Karnataka. MSPL, a major iron ore mining company, won other two iron ore mines of the state this month.

The first phase of mines auction, which has been going on since December last year, has seen auction of total 16 non-coal mines till now by seven state governments. The eight mines which were auctioned by other state governments — six of them were limestone, one gold and one diamond — did not see such a high bid from the companies. The bids for these mines were in the range 8 per cent to 59 per cent. Odisha’s iron ore mine was auctioned at a bid of 44 per cent of the floor price in March 2016.

The auction of the 16 non-coal mines is estimated to bring a total revenue of Rs 59,447 crore over the next 50 year period for these state governments.

As per the new mining law — Mines and Minerals (Development and Regulation) Amendment Act, 2015 — which came into effect from January 2015, the non-coal mines have to be auctioned by the respective state governments. Under the old mining law, the state governments only had the powers to grant the mining lease to any company as per their discretion.

The auction process takes place in two rounds. Mineral auction rules, which have been formed under the new mining law, clearly state that in the first round, the bidders have to quote the percentage of the monthly value of the mineral dispatched from the mine. The highest percentage quoted then gets marked as the floor price for the second round.

Subsequently, the bidders get ranked on the basis of the descending initial price offer submitted by them. The first 50 per cent of the ranks or the top five bidders, whichever is higher, are termed as qualified bidders for participating in the second round of electronic auction. The second-round auction then follows the simple forward-bidding process, where the bidder quoting the highest percentage is deemed as the winner.

MSTC Limited
conducted E-Auction for Hatupur Diamond mineral block in Panna district of Madhya Pradesh

India

's First Diamond Mineral Block Auctioned in Madhya Pradesh

Bhopal: In a first, a diamond mineral block in Madhya Pradesh's Panna district having precious stone deposit worth nearly Rs 106 crore has gone under the hammer.

"Hatupur Diamond mineral block was successfully auctioned on October 5, in Panna district. This is the first diamond mineral block of the country which went under the hammer," a state official said today.

According to Secretary, Mineral Resources, Manohar Dube, "Diamond mineral worth Rs 106 crore is available in the Hatupur block."

Bansal Construction Works emerged as the preferred bidder by submitting the highest final price offer after two rounds of competitive bidding.

Three other companies - Rungta Mines Ltd, Thriveni Earthmovers Ltd and Pushpanjali Tradevin Pvt Ltd - were also in contention for the block.

The block witnessed aggressive bidding from the companies which lasted approximately eight hours and a final bid at 22.31 per cent was received.

The block was carefully chosen based on industry requirements and its attractiveness in terms of size, land ownership pattern and economics.

The block located is presently under G3 category and is spread over an area of 133.50 Ha. It has 0.604 MT of inferred resources with diamond incidence of 10.20 carat/100 tonnes.

Prospecting operations would be carried out first after which the mining lease would be executed thereupon subject to compliance with conditions stipulated in the Act and rules, the official said.

An additional revenue of Rs 25 crore is estimated from the block to the state government over the mining lease period. The royalty and other statutory payments over the lease period are estimated to be about Rs 11 crore, he said.

SBI Capital Markets was the transaction adviser for the auction process and MSTC Limited was auction platform provider.

The government is committed to making Madhya Pradesh a top mining destination in the country and is taking several steps to boost it (mining) in the state.

Saturday, 1 October 2016

Nagaur limestone block gets record bid

MSTC conducted e-Auction for allocation of Mining Lease of Lime Stone Block - 3B1- (b) n/v Deh of Tehsil Jayal, District Nagaur, Rajasthan. This is the first time mineral block is allocated in Rajasthan through e-Auction. News appeared in Times of India, Jaipur on 24th September,2016 is as below:

Rajasthan received a record eight times the reserved price for the largest limestone block in the country in the e-auction conducted on Thursday. The block, situated in Jayal tehsil of Nagaur, has 168 million tonne of high-grade limestone resources.

Three major cement companies such as Emami Cements, JSW Cements and Mangalam Cements were in the fray for bidding. The reserve price for the block was approximately INR 35 per tonne. After a session of aggressive bidding, the block received a final bid of about INR 300 per tonne from Emami Cements which is more than eight times the reserve price. “This is a major success for the department as it will result in revenue of at least INR 6,000 crore for the state over the life of the mine as well as create hundreds of jobs in the area. Rajasthan is already the leading cement manufacturer in the country with the presence of 23 cement plants and this will further consolidate the state's position,“ secretary (Mines) Aparna Arora said in a release.

As per the two-stage bidding process, the reserve price for initial bids was set at 7% of INR 500. In the first round, the highest bid came at 16.59% which was set as the floor price for second round that followed the e-auction route. The block witnessed aggressive bidding from the companies and received a final bid at 60.09% (of INR 500) from Emami Cements, more than 8 times the reserve price of INR 35 beating the previous record of 58.95% achieved in Chhattisgarh.