Responses to Bidders’ Queries (Part 1) on Model Tender ......Mar 03, 2018 · The...
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Responses to Bidders’ Queries_Part 1 P a g e 1 | 22
Responses to Bidders’ Queries (Part 1) on Model Tender Document and Mine Specific Tender Documents for Auctions of Category “C” Iron Ore Mines (NIT Dated 30 Jan 2018)
The replies/clarifications/responses shall be applicable to Model Tender Document (including MDPA) and all mine specific Tender Documents (including MDPAs) issued pursuant to the Notice Inviting Tender issued by the Director, Department of Mines & Geology, Government of Karnataka on 30th Jan 2018.
S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
Geological Reports
1.
Sri H G
Rangangouda
ML No 2148
Geological
Report on
Estimation of Iron ore reserves in respect of Shri H G Rangangoud mine lease (ML no. 2148), Dist - Ballari, Karnataka
Salient Features, Point No.
22, Pg. iii
&
Chapter-3; Lumps and
Fines, Point No. 3.6.6, Pg.
14
Under Physical facts of
Salient Features, Lumps &
Fines content is mentioned as
67.08% & 32.92%
respectively.
In Chapter 3, Point no 3.6.6;
Distribution % of Lumps
(+10mm) and Fines (-10mm)
has been given in 5 separate
pits dug within the mined
area.
It is seen that the Lumps :
Fines ratio of 67 : 33 as
mentioned in the Salient
Features, is the proportion found
in a single pit of Lateritic ore.
Whereas the average value of
Lumps: Fines from the 5 pits
taken together is about 29:71.
From the above ratio, it is
seen that the deposit is
predominantly of fine ores
whereas it is reported as
lumpy, which is a
discrepancy. The litho logs
also show a predominance of
fines ore.
The Lumps: Fines ratio
of the deposit should
be corrected to 29:71
to reflect a
predominantly fines
deposit.
The Lump and Fines ratio
has been arrived by
MECL by selective pitting
and screening on
different types of ores
prevailing in the area and
also with due field
observations.
Based on the field
observations the
geological map drawn is
indicative of a more
predominantly lumpy ore.
The sample drawn and
screened in the surface is
not a true representative
of the deep in-situ ore.
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S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
The data obtained from
borehole is not indicative
and cannot be
considered due to the
fact that majority of
boreholes are RC.
Considering the above
factors the Lumps and
Fines ratio have been
arrived as 67:33 by
MECL.
2.
Sri H G
Rangangouda
ML No 2148
Tender
Document
Clause 5
Value of Estimated
Resources (VoER)
Please confirm that Lumps:
Fines ratio of 29%:71% has
been used for estimating the
VoER.
In the Geological Report on
Estimation of Iron ore reserves,
Under Physical facts: Salient
Features, Lumps & Fines
content is mentioned as 67.08%
& 32.92% respectively. This ratio
is the lumps: fines ratio for
lateritic ore which is one of the
ore types found in the deposit.
However, the Geological report
also has a reference to the
Lump: Fines ratio in five pits of
all different ore types found in
the deposit, the average of
which is 29:71. This Lumps:
Fines ratio ideally should have
The Lump and Fines ratio
has been arrived by
MECL by selective pitting
and screening on
different types of ores
prevailing in the area and
also with due field
observations.
Based on the field
observations the
geological map drawn is
indicative of a more
predominantly lumpy ore.
The sample drawn and
screened in the surface is
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Responses to Bidders’ Queries_Part 1 P a g e 3 | 22
S.No.
Reference
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Suggestions Rationale
Suggested text for
amendment, if any Response
been used for VoER as it is this
ratio which is representative of
the deposit.
not a true representative
of the deep in-situ ore.
The data obtained from
borehole is not indicative
and cannot be
considered due to the
fact that majority of
boreholes are RC.
Considering the above
factors the Lumps and
Fines ratio have been
arrived as 67:33 by
MECL. And the same
ratio has been
considered for the
calculation of VER.
3.
Sri H G
Rangangouda
ML No 2148
Geological
Report on
Estimation of
Iron ore
reserves in
respect of
Shri H G
Rangangoud
mine lease
(ML no.
Survey data provided
along with the Geological
Report – AN-1.pdf
The entire survey data has
been provided in PDF form as
a 90 - page document with
5101 points of survey records.
Survey pickups on the steep
western slope of the property,
within ML, are quite few in
number and does not properly
define the slope for
topographic modelling.
It would have been much more
user friendly & time saving if the
survey data could be provided
as an ordinary ASCII file. The
crest & toe strings of mine
benches & dumps, dump
boundaries, lease boundaries,
topographic contours etc. should
have been provided as DXF files
(with Z values).
The soft copy of the
survey data in .dwg is
available and same
would be provided to the
prospective bidders.
Due to the inaccessibility
of the areas towards the
steep slopes data points
captured are limited.
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Responses to Bidders’ Queries_Part 1 P a g e 4 | 22
S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
2148), Dist -
Ballari,
Karnataka
Toe and crest lines of the
mined benches are not
provided separately, but those
points are dumped along with
all other survey points.
Many of the survey points
provided on the western slope of
the block, to the NW and SW,
have large RL differences with
topographic contours taken from
toposheet of the area.
4.
Sri H G
Rangangouda
ML No 2148
---do--
Chapter-6; Statistical
Parameters, Point No.
6.1.1, Page 40
Under statistical parameters
estimated for entire 3071
primary samples, standard
deviation (SD) values of Fe%,
Al2O3% and SiO2% are seen
to be very low (0.05, 0.163 &
0.107 respectively).
Similarly, statistical
parameters of 2248 primary
zone samples also show very
low SD values of Fe%,
Al2O3% and SiO2% (0.03,
0.230 & 0.279 respectively).
From the assay data of bore
hole samples provided in
Annexures -AN-3B & 4, the
standard deviations do not
appear to be low.
For the entire 3071 primary
samples, the SD values of
Fe%, Al2O3% and SiO2% are
found to be about 16, 7 and 17
respectively.
The reported SDs
should be corrected
and other statistical
parameters re-
checked.
S.D arrived are from the
plot of log probability
paper; the plots are
provided for zone data
only. However, sichel’s ‘t’
estimator would be 54-56
% Fe, 14.010-15.010 %
SiO2 and 3.98-6.52%
Al2O3.
5.
Sri H G
Rangangouda
ML No 2148
---do-- Contents:
Annexure-3B/; Page 6, 10,
13, 16, 22…
Ore / Waste classification of
samples in the litho logs:
1) In BH no. MHGR-2 (depth from 29m to 40m) samples have been classified as Siliceous Iron ore but avg, Fe% of the zone is around 35% which is below IBM threshold value of Fe 45%.
The litho codes of the
samples should be
corrected after their
assay determination
1) MHGR-2 data considered for estimation is from 0m to 20m only.
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S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
As per IBM norms, samples
with Fe >45% should only be
considered as ores.
In the assay data provided for
the litho logs, many samples
with Fe
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S.No.
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Suggestions Rationale
Suggested text for
amendment, if any Response
ore is +45% Fe and said
average grade has been
considered for
demarcation of ore zone.
6.
Sri H G
Rangangouda
ML No 2148
---do-- Chapter-3; Primary
Sampling, Point No.
3.10.2, Pg. 20
It is mentioned “The entire lot
of chips and powder material
were collected from boreholes
drilled by Reverse Circulation
drill. 50% mostly of chip
samples have been
thoroughly mixed to have
the desired quantity of 500-
600 gm and pounded to (-)
100 mesh size by progressive
reduction …”.
81% of the total bore holes are
RC drilled and 82% samples
analyzed are RC samples.
Moreover, the deposit is seen to
be predominantly constituted of
fines and powdery ores. In such
samples, the proportion of chips
will be much lesser than the
powdery portion. During RC
drilling, the entire powdery
portion of such samples need to
be captured for proper
representation of the sample.
None of it should be lost e.g.
dispersed with the return air.
Half of the entire sample
collected must be used for
further producing the sample
pulp by step wise reduction.
Chips should never be
selectively chosen for the
sample, as written in the GR,
The procedure for
primary RC sample
preparation as
described appears to
be incorrect.
QA&QC procedures
should be followed for
Sampling.
The samples consisting
of a mixture of both chips
and fines are collected in
a cyclone which is a part
of the RC drill machine.
The said samples drawn
are subjected to
Standard sample
collection procedure by
coning and quartering
method. The loss of
sample during collection
is taken care of by
plugging vantage points.
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Responses to Bidders’ Queries_Part 1 P a g e 7 | 22
S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
which is a total mis-
representation.
Was QAQC conducted during
Sampling – like Field splits to
test the robustness of the
entire sample preparation
process?
7.
Sri H G
Rangangouda
ML No 2148
---do-- Chapter-6; Check Sample
Analysis, Point No. 6.2.6,
Pg 41-44
It has been mentioned that
103 nos. of samples have
been subjected to check
analysis for testing reliability
of the analysis
It is mentioned that primary
chemical analysis of the samples
was carried out at MECL Lab but
it is not mentioned where the
analysis of check samples
was carried out at the same
lab or at a different lab and
whether it is NABL certified.
As per guidelines of the
Mineral (Evidence) Rules,
2015, at least 10% of the
samples need to be checked
in a NABL certified lab. That
should be about 307 samples.
In Text Plate 3 correlation
between primary vs. check
analysis the R2 value is not
provided.
MECL is a Govt. of India
organization and
analysis of check
samples have been
carried out in their lab.
From the scotterplot the
R2 is 0.710. After
removal of two outlier
samples viz. 40.8-
MHGR-8/56 and 10.95-
MHGR-14/67, the R2 is
0.926, it is inadvertently
not mentioned in the plot
as well as in the text.
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S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
8.
Sri H G
Rangangouda
ML No 2148
---do-- Chapter-6; Check Sample
Analysis, Point No. 6.2.6,
Pg 41-44
Large difference in Fe%
values seen in some check
analysis, particularly for low
iron value samples.
In few check samples analysis
large difference could be
noticed for Fe%, like 40.8
(MHGR-8/56) and 10.95
(MHGR-14/67)
Blanks and Standards should
have been introduced within
the analysis batches and the
test results compared to
check the accuracy of the Lab.
QA&QC procedures
should be followed for
Sample Analysis
Mostly, the analytical
value has not shown
much difference. Hence,
the anomalous value of
40.8 and 10.95, if it were
being not considered as
outlier the R2 is 0.926.
Blanks and standard
checks have been
adapted during analysis.
9.
Sri H G
Rangangouda
ML No 2148
---do-- Chapter-6; Accuracy of
Analytical Procedure, Point
No. 6.2.0, Pg. 40-41
No QA&QC procedure is
mentioned to have been
conducted to test the reliability
of the analysis results, except
for check analysis of 103
samples
Proper Check Analysis needs
comparison of sample analysis
to be done:
1) Intra Lab: Repeat test in same lab.
2) Inter Lab: Repeat test in another lab of the same agency / company.
3) Umpire Lab: Repeat test in an NABL certified external lab.
It is not mentioned whether
Check Samples were prepared
QA&QC procedures
should be followed for
Sample Analysis
MECL is a Govt. of India
organization and
analysis of check
samples have been
carried out in their lab.
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Responses to Bidders’ Queries_Part 1 P a g e 9 | 22
S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
as Triplicates for conducting the
above tests.
10.
Technical- G R
of Mysore
Mineral
Limited
Technical- G
R of Mysore
Mineral
Limited
Table No 5, Row No 4 &5,
Page 31
The quality of MMLR -19, from
41.00mts to 60.00 metres has
not been mentioned. Please
give the quality of that
particular borehole to know
the actual average grade.
The details of the quality of the ore has been mentioned in Table No 2 at page No 23 of text part of the GR.
11.
Ms
Kanhaiyalal
Dudheria ML
No 2563
Geological
Maps and
cross sections
plates of
Tender
Document.
Plates are in Pdf format Kindly provide all plates in
AutoCAD Format.
All Geological Sections and
Maps needs to be provided in
AutoCad format for cross
verification.
The soft copies of the
plates in AutoCAD
Format are available and
same would be provided
to the prospective
bidders.
12.
Ms
Kanhaiyalal
Dudheria ML
No 2563
Geological
Report of
Tender
Document
Annexure and other
analysis tabular data are in
pdf format
Kindly provide in Excel format. The soft copies of the
annexure in excel format
are available and same
would be provided to the
prospective bidders.
13.
Ms
Kanhaiyalal
Dudheria ML
No 2563
Geological
Report of
Tender
Document
Geological Report shows
Bulk Density considered as
3.5 for calculation of
Resource /Reserve, where
as in Resource calculation
Whether the bulk density
considered for calculation
Resources/Reserves is 3.5 or
3.47?
Please clarify. For reserve/resource
estimation, BD/Sp.Gr. of
3.50 has been
considered. (para 5.5.2,
Page no.28)
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Responses to Bidders’ Queries_Part 1 P a g e 10 | 22
S.No.
Reference
Document/
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Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
sheets bulk density
considered as 3.47.
14.
Ms
Kanhaiyalal
Dudheria ML
No 2563
Geological
Report of
Tender
Document
Detail Analysis of all the
elements are not mention
in the report such as S, P,
and LOI etc.
Please provide all elements
data.
These elements are
critical for making
special steel for end
users.
The radicals analyzed for
Fe, SiO2 and Al2O3 only.
15.
Ms
Kanhaiyalal
Dudheria ML
No 2563
Geological
Report of
Tender
Document
In Summary of Mineral
Block the only geological
resource/reserves are
given.
Mineable resources/reserves
should be provided.
Grade wise Mineable
resource estimation
should be provided by
considering 7.5m
buffer from the
boundary.
Mineable
resources/reserves
assessment has not
been carried out by
MECL. However, the
resources blocked at 7.5
meter safety zone have
not been considered for
assessment.
16.
Ms
Kanhaiyalal
Dudheria ML
No 2563
Geological
Report of
Tender
Document
In some cross sections
siliceous ore analysing
below 45% Fe.
Waste area was included for
Reserve calculation.
Please clarify. The assessment of
reserve/resources has
been carried out with
cutoff grade of +45% Fe.
17.
H.G.
Rangangouda
ML No 2148
Geological
Maps and
cross sections
plates of
Tender
Document.
Plates are in Pdf format Kindly provide all plates in
AutoCAD Format.
All Geological Sections and
Maps needs to be provided in
AutoCad format for cross
verification
The soft copies of the
plates in AutoCAD
Format are available and
same would be provided
to the prospective
bidders.
-
Responses to Bidders’ Queries_Part 1 P a g e 11 | 22
S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
18.
H.G.
Rangangouda
ML No 2148
Geological
Report of
Tender
Document
Annexure and other
analysis tabular data are in
pdf format
Kindly provide in Excel format. The soft copies of the
annexure in excel format
are available and same
would be provided to the
prospective bidders.
19.
H.G.
Rangangouda
ML No 2148
Geological
Report of
Tender
Document
Geological Report shows
Bulk Density considered as
3.5 for calculation of
Resource /Reserve, where
as in Resource calculation
sheets bulk density
considered as 3.47.
Whether the bulk density
considered for calculation
Resources/Reserves is 3.5 or
3.47?
Please clarify. For reserve/resource
estimation, BD/Sp.Gr. of
3.50 has been
considered. (para 5.4.2,
Page no.33)
20.
H.G.
Rangangouda
ML No 2148
Geological
Report of
Tender
Document
Detail Analysis of all the
elements are not mention
in the report such as S, P,
and LOI etc.
Please provide all elements data These elements are
critical for making
special steel for end
users
The radicals are
analysed other than Fe,
SiO2 and Al2O3 are
given in the Annexure-
VIA.
21.
H.G.
Rangangouda
ML No 2148
Geological
Report of
Tender
Document
In Summary of Mineral
Block the only geological
resource/reserves are
given.
Mineable resources/reserves
should be provided.
Grade wise Mineable
resource estimation
should be provided by
considering 7.5m
buffer from the
boundary.
Mineable
resources/reserves
assessment has not
been carried out by
MECL. However, the
resources blocked at 7.5
meter safety zone have
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Responses to Bidders’ Queries_Part 1 P a g e 12 | 22
S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
not been considered for
assessment.
22.
H.G.
Rangangouda
ML No 2148
Geological
Report of
Tender
Document
In some cross sections
siliceous ore analysing
below 45% Fe.
Waste area was included for
Reserve calculation.
Please clarify. The assessment of
reserve/resources has
been carried out with
cutoff grade of +45% Fe.
23.
Ms Bharath
Mines and
Minerals ML
No 2245
- -
Core drilling analysis is not given in the geological report
Core drilling analysis
have been furnished at
Annexure-IV of GR.
Tender Documents/ MDPA
1.
General
Queries
(Model Tender
Document)
Tender
Document
Clause 5 (a) Eligibility
Explanation: (a) in the
case of a firm or other
association of individuals,
only if all the members of
the firm or members of the
association are citizens of
India
What if any one of the
Directors of a company is an
Non Resident of India or
Overseas Citizen of India
card holder or Person of
Indian Origin
A company may have more than
two Directors & If anyone is an
NRI or OCI or PIO, can such a
company bid?
A company is a separate
person from its
promoters / shareholders
/ directors. Please refer
Clause 5 (1) (a) of MMDR
Act, which is reproduced
in the Tender Document,
as a part of section 5 of
the Tender Document.
2.
General
Queries
(Model Tender
Document)
Bid Security Point 2, Format of Bid
Security
The Bank account details
mentioned are State Bank of
Mysore, can it be made in
favour of State Bank of India
The said Bank has merged with
State Bank of India
Please refer
Corrigendum No. 1
issued vide date 03 Feb
2018.
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Responses to Bidders’ Queries_Part 1 P a g e 13 | 22
S.No.
Reference
Document/
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Suggestions Rationale
Suggested text for
amendment, if any Response
3.
General
Queries
(Model Tender
Document)
Mine
Development
& Production
Agreement
Clause 6.4, Utilisation of
Mineral, beneficiation of
low grade iron ore can be
done by the successful
bidder/lessee himself
……….. to be further used
only for the specified end
use by successful bidder/
lessee himself
Can the successful bidder/
lessee send the mineral for
beneficiation on the job work
basis to third party but get it
back for his end use only
There may be space constraint
at the mine area to set up a
beneficiation plant but there is a
beneficiation plant of a third
party close by.
The Bidder can
beneficiate the ore in
accordance with the
terms of the Tender
Document including
specifically Section 6 of
the MDPA.
4.
General
Queries
(Model Tender
Document)
Mine
Development
& Production
Agreement
Clause 6.5, the mining
lease shall be for all
minerals……….., by
whatever name called
framed by the concerned
State Government under
section 15 of the act
Do the minor minerals excavated have to be stored separately & accounted or can it be dumped or sold
It cost to excavate & segregate
each & every minor minerals
found & to be accounted
Minor mineral shall be
dealt with, as per
provisions of the
Karnataka Minor Mineral
Concession Rules 1994
including any
amendments made
thereof.
5.
General
Queries
(Model Tender
Document)
Mine
Development
& Production
Agreement
Clause 7.1.2
The successful bidder shall
make annual
payments……the value of
resultant shortfall quantity
shall be calculated
considering the following
Can the annual payment be
made by way of Bank
Guarantee for the amount for
certain period or by way of
Letter of Credit
As a way of financial facility
available.
No. Bank Guarantee or
letter of credit in lieu of
annual payments to be
made by the Preferred
Bidder/ Successful
Bidder is not allowed.
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S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
6.
General
Queries
(Model Tender
Document)
Mine
Development
& Production
Agreement
Clause 8.3,
Any non-compliance with
……….a right to determine
the mining lease without
prejudice to any other
proceedings to be taken
against the mining lease
holder
Will the lease holder asked to
surrender with or without
penalties
Clarification as to qualifying the
penalty if any
Clause 8.3 of the MDPA is self-explanatory in this regard.
7.
General
Queries
(Model Tender
Document)
Mine
Development
Production
Agreement
Clause 17,
Event for Force Majeure
If the mining is not possible
due to local or village issues
or the villagers hamper the
movement of vehicle or stop
production or other external
interferences
It is found that quite a few mines
are not able to operate due to
these local & external
interferences
It is a business risk,
which needs to be
assessed by the bidder.
Please refer Clause 1.3
of the Tender Document.
8.
Sri H G
Rangangouda
ML No 2148
Tender
Document
Clause 10.2 Declaration of
Successful Bidder:
The Preferred Bidder shall
be considered to be the
“Successful Bidder” upon, -
(f) having paid the actual
expenses INR 8,04,62,037
(Rupees Eight Crore Four
Lakhs Sixty-Two Thousand
Thirty-Seven) incurred by
the Government of
The Successful bidder should
not be liable to pay Rs
8,04,62,037 towards
expenses incurred by Govt of
Karnataka for mine
exploration, DGPS survey and
preparation of provisional
R&R plans etc.,
In other states auctions, the
expenses spent towards mine
exploration, DGPS survey and
construction of pillars etc., is
borne by the respective State
Governments.
The provisions of Tender
Document and MDPA
shall prevail.
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S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
Karnataka on mine
exploration, preparation of
Provisional R&R Plans,
survey, construction of
pillars and DGPS survey
within 60 days of issue of
letter of intent, the exact
amount of which shall be
indicated in mine specific
Tender Document.
9.
Sri H G
Rangangouda
ML No 2148
Tender document
Clause 2.3. “Auction Rules” mean the Mineral (Auction) Rules, 2015 and its amendments.
Since the concession area is
reserved for ‘specified end
use’, will the amendment to
the Mineral Auction Rules in
2017 allowing sale of 25% in
the current financial year of
the quantity of mineral
excavated in the previous
financial year be applicable to
category ‘C’ mines
Mineral (Auction) Amendment
Rules,2017 allows sale of
quantity of mineral equivalent to
25% of total mineral excavated
in the previous financial year for
which end was specified can be
sold in the current financial year.
Clarification will be provided subsequently.
10.
Sri H G
Rangangouda
ML No 2148
Tender
Document
Clause 10.3
Execution of Mine
Development and
Production Agreement.
The State Government and
the Successful Bidder shall
What would be the time frame
to be considered for transfer
of existing statutory
approvals/clearances of the
erstwhile Category C mining
lease in favor of the
successful bidder considering
Annual payments including
payments towards shortfall
quantity shall come into effect at
the end of 18 months from the
date of issue of order by State
Annual payments
including payments
towards shortfall
quantity shall come
into effect at the end of
36 months from the
Clarification will be
provided subsequently.
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S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
enter into the MDPA upon
the Successful Bidder
having obtained all
consents, approvals,
permits, no-objections and
the like as may be required
under Applicable Law for
commencement of mining
operations. In its
Judgment, the Supreme
Court has directed that
“existing statutory
approvals/ clearances in
favor of the lessee of the
erstwhile Category C
mining leases will be
transferred in favor of the
new lessees”. In its
Judgment, the Supreme
Court has further directed
that “the concerned
authority will take
expeditious action for the
grant of the statutory
approvals such as the
environmental clearance
and approval/ TWP under
the fact that the successful
bidder is required to start the
mine within18 months?
Govt. acknowledging Preferred
Bidder as the Successful Bidder.
Whereas, Proviso to Rule 10 (6)
Mineral (Auction) Rules, 2015,
allows for a three year term
extendable by a further 2 years
from the issue of Letter of Intent
(LoI) for execution of ML Deed.
date of issue of Letter
of Intent (LoI).
The time frame may be
increased to bring
tender document
clauses in conformity
with Mineral (Auction)
Rules, 2015 and its
amendments.
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S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
the Forest (Conservation
Act), 1980”.
11.
Sri H G
Rangangouda
ML No 2148
Tender
document
Clause 14.1 Bid Security
…Bid Security in the form
of Bank Guarantee having
a validity period of not less
than 510 days from the bid
due date….
While in all other states, the
validity of IPO and Bank
guarantee is 180 and 240
days respectively, this tender
document mandates IPO and
BG to be valid for 450 and
510 days. Would the State
Govt. want to re consider the
revising validity period
downwards?
To bring in parity The provisions of Tender
Document and MDPA
shall prevail.
12.
General
Queries
(Model Tender
Document)
General If any participant has already
purchased the Tender
documents in Phase I/II but
did not participated in Auction.
Now again the same block
has come for current auction,
whether he has to purchase
the same Tender for second
time if he wants to participate
in Auction?
Bidders who have
purchased Tender
Document earlier shall
not be considered in the
current round of auction
i.e. NIT dated
30.01.2018.
Bidders who want to
participate in the current
round of auction (NIT
dated 30.01.2018) have
to purchase the mine
specific Tender
Document by payment of
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S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
INR 200,000 (Rupees
Two Hundred Thousand)
per such Tender
Document.
13.
Ms
Kanhaiyalal
Dudheria ML
No 2563
Tender
document
MDPA Point No.6.2
Utilization of Mineral
:Mineral extracted under
the mining lease shall (i)
be utilized solely for
specified End use, (ii) not
to be sold or otherwise
disposed, either directly or
indirectly; and (iii) Not to
be sold with or without
beneficiation
As per Mineral (Auction)
Amendment Rules 30th
November, 2017, In Point5,
the said Rules in Rule No.6, in
sub-rule 4, in clause No.(ii) “
Provided that quantity of
Mineral equivalent to 25% of
total mineral excavated in the
previous financial Year for
which End use was specified
can be sold in the current
Financial year.
Please clarify. Clarification will be
provided subsequently.
14.
H.G.
Rangangouda
ML No 2148
Tender
document
MDPA Point No.6.2
Utilization of Mineral
:Mineral extracted under
the mining lease shall (i)
be utilized solely for
specified End use, (ii) not
to be sold or otherwise
disposed, either directly or
indirectly; and (iii) Not to
As per Mineral (Auction)
Amendment Rules 30th
November, 2017, In Point5,
the said Rules in Rule No.6, in
sub-rule 4, in clause No.(ii) “
Provided that quantity of
Mineral equivalent to 25% of
total mineral excavated in the
previous financial Year for
which End use was specified
Please clarify. Clarification will be
provided subsequently.
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S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
be sold with or without
beneficiation
can be sold in the current
Financial year.
15.
Ms
Srinivasalu,
Ms
Chennakesava
Reddy,
Mineral Miners
and Traders,
Nidhi Mining
Company
Clause 9
Reserve Price
9 Reserve Price
The Reserve Price is 35%
(thirty five per cent) of
value of Mineral
Despatched
“Reserve Price” to be reduced in
accordance with para 9 of the
Judgement dated 30.07.2015 of
The Hon’ble Supreme Court of
India for the Mines which have
not attracted bids above the
Reserve price in the earlier
rounds of auction
9 Reserve Price
The Reserve Price is
5% (Five per cent) of
Value of Mineral
Dispatched
The provisions of Tender
Document and MDPA
shall prevail.
16.
Ms
Srinivasalu,
Ms
Chennakesava
Reddy, Mineral
Miners and
Traders, Nidhi
Mining
Company
Clause 8.1 8.1 Provided that if the
number of technically
qualified bidders is
between three and five,
then all the technically
qualified bidders shall be
considered as qualified
bidders
Mining Auction rules have been
amended to consider less than 3
bidders in 2nd round of auction
itself
Provided that if the
number of technically
qualified bidders is
between below five ,
then all the technically
qualified bidders shall
be considered as
qualified bidders
The ongoing round i.e.
NIT dated 30.01.2018 is
the first round after the
notification of Mineral
(Auction) Amendment
Rules, 2017 on 30th
November 2017.
The provisions of Tender
Document and MDPA
shall prevail.
17. Ms
Srinivasalu,
Ms
19.4.2 The stamp duty
payable for this Agreement
Calculation of stamp duty to
be given for already started
mines
To understand the calculation
methodology of stamp duty
Please refer Karnataka
Stamp (Fourth
Amendment) Act, 2016
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S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
Chennakesava
Reddy, Mineral
Miners and
Traders, Nidhi
Mining
Company
shall be borne by the
Successful bidders
18.
Ms Bharath
Mines and
Minerals ML
No 2245
- -
BMM Provisional R&R plan
documents not available in the
paid documents
Provisional R&R plan of
Ms Bharath Mines and
Minerals ML No. 2245 is
now available as part of
the paid documents.
19.
Ms Bharath
Mines and
Minerals ML
No 2245
- -
GST is applicable on Stamp
Duty?
As per Applicable Law.
Dump area, mine capacity, R&R plan, etc.
1.
Sri H G
Rangangouda
ML No 2148
Summary of
the Mineral
Block
Total Area – 60.66 Ha
Mineralised area - 15.7 Ha
and Broken up area 44.4
Ha
Non Mineralised area -0.5
Ha
Rule 5(3), Mineral (Auction)
Rules, 2015, provides for
inclusion of area required for
all activities falling under the
definition of ‘Mines’ including
sufficient space for dumping
of overburden. OB Dumps are
ideally situated in non-
mineralised area in the
Non-mineralized area identified
is too small for setting up
processing plant/OB dump/mine
infrastructure etc.,
The boundaries of all the
“C” category mines have
been fixed by CEC and
approved by Hon’ble
Supreme Court vide
order dtd: 18.04.2013.
Hon’ble Supreme Court
on 30.07.2015 and
13.09.2017 has directed
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S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
interest of mineral
conservation.
The total non-mineralised
area in the lease is only 0.5
Ha which by any means is not
sufficient.
Is there a scope of inclusion of
additional area to
accommodate all activities
under the definition of
‘Mines’?
to auction the “C”
category mines with the
boundaries as finalized
by the Apex Court.
Hence, alteration of the
boundaries does not
arise.
2.
Ms
Srinivasalu,
Ms
Chennakesava
Reddy, Mineral
Miners and
Traders, Nidhi
Mining
Company
Draft R&R R&R quantity is not given Draft R&R Plan should have
tentative quantity
The permitted
production as per draft
R&R is …………..MT
The provisional R&R
plan has been prepared
as per the CEC
guidelines vide letter no.
61/CEC/SC/2012-Pt.II
dated 20.08.2015 and
approved by CEC vide
letter no. 2-
76/CEC/SC/2015 dated
02.11.2015.
3.
Sri H G
Rangangouda
ML No 2148
Provisional
R&R Plan
2.9 Estimated Iron ore
reserves by M/s MECL
…Thus, 60.16 Million
Tonnes can be considered
to arrive at the permissible
Rationale behind considering
20 years instead of lease
tenure of 50 years?
For the sake of clarity. As per CEC guidelines
approved by Hon’ble
Supreme court of India
and approved by CEC
vide letter no. 2-
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S.No.
Reference
Document/
Name of Mine
Document Article/Clause/Page No. Comment/Views/
Suggestions Rationale
Suggested text for
amendment, if any Response
annual production capacity
for next 20 years.
61/CEC/SC/2017-Pt.III
dated 31.01.2018. .