Govt. of Chhattisgarh, Mineral Resources Department

2nd National Conclave on Mines and Minerals February 15, 2017

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Presentation agenda

1.  Chhattisgarh - India's leading mining destination

2.  Major mineral blocks proposed for auction

3.  Minor mineral auctions

4.  Proposed mineral evacuation infrastructure

Chhattisgarh - India's leading mining destination

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Chhattisgarh is a first in many key initiatives in mining sector

1st  State  

1st  State  

1st  State  

1st  State  

1st  State   Notification of DMF trusts in all districts

Implementation of NMET

Auction of non-coal mining lease

Auction of gold block

Auction of minor minerals

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Chhattisgarh: Out come of 1st Stage auction

@ 483.17/ per Ton Sale Price @ 483.17/ per Ton Sale Price

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Press coverage of the auction

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Key success factors

Chhattisgarh Govt. treated 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

Major mineral blocks proposed for auction in FY 17-18

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2nd phase: Auctionable limestone & bauxite blocks

Sr.  No. Block District Area  

(In  Hect.)

Resource  (Million  Tonne)

Type of lease

Proposed for Timeline

Limestone

1 Kesla  –  II Raipur 358 215 ML  Cap0ve  mining  

March  2017

Bauxite

1 Kandraja Surguja 75 03 ML  Merchant  mining  

March  2017

2 Sapnadar  (Block  A,  B  &  C)

Surguja 76 03 ML  Merchant  mining  

March  2017

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Location of the limestone block to be auctioned for mining lease

ACC

JK Laxmi

Century

Shree Grasim Ultratech

Lafarge

Bhilai Power Plant

Bhilai Steel Plant

KSK Mahanadi Power Plant NTPC Ispat Plant

Jagannathpur Block

Dipka Block

Karhi  Chandi

Mohra  East

Kesla  -­‐  II

Mangsa-­‐Pauni-­‐Khauna

Baghmara

Mineral Blocks

Cement Plants

Steel Plants

Coal Mines

Power Plants

Ambuja

Emami

Name of Block

Area (Ha)

Mineral Resource (MT)

Kesla - II 358 215

Cement Plant Distance (Km) Kesla - II

Lafarge-Aresmeta 74 Lafarge-Sonadih 45 Ambuja Cement 32 Shree Cement 23 Grasim Cement 20 Ultratech Cement 14 Century Cement 18 JK Lakshmi 50

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Location of the bauxite blocks to be auctioned for mining lease

Name of Block

Area (Ha)

Mineral Resource (MT)

Kandraja ~100 3 Sapnadand ~110 3

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Details of mineral blocks to be auctioned for mining lease

Kesla – II Kandraja Sapnadand District Raipur Surguja Surguja Tehsil Tilda Mainpat Sitapur Estimated Quantity 215 Million tonne 3.0 Million tonne 3.1 Million tonne

Average Grade •  Cao – 43.1% •  MgO – 2.1%

•  Al2O3 - 43.78% •  SiO2 - 3.27%

•  Al2O3 - 44.64% •  SiO2 - 4.09%

Total Area 358 ha ~ 100 ha ~ 110 ha

Land 90% Pvt. & 10% Govt. 100 % Govt. (Forest Land) 100 % Govt. (Forest Land)

Accessibility by road

40 km from Raipur towards Baloda – Bazar

From Ambikapur either via Darima (~75 Km) or Karabel (~85 Km)

From Ambikapur via Darima (~50Km)

Nearest rail head Siliyari Railway Station (21 km) Ambikapur (~75 Km) Ambikapur (~50 Km)

Major mineral blocks proposed for auction in FY 17-18

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Upcoming mineral blocks for auction in 2017-18

Sr. No. Block District Area (In Hect.)

Resource (Million Tonne)

Limestone

1 Hardi, Matre Gota Durg 680 121

2 Acholi and Ghotwani Durg 240 121

3 Junaguda Bastar 216 51

4 Sivani-Alnaar Bastar 207 48

5 Baranji Bastar 324 43

6 Chhapar-Bhaanpuri Bastar 342 41

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Location of limestone blocks to be auctioned in Bastar district

Minor mineral auction in Chhattisgarh

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Outcome of minor mineral auction in the state

42 blocks

Rs. 285 Crores

34 blocks Successfully auctioned minor

mineral blocks

NIT’s issued in the state

Expected auction money from auction of minor minerals

•  State received, bids as high as 35 times of the Reserve Price

•  State is planning to auction granite and quartz on the same framework

All figures mentioned are figures with respect to minor mineral auction carried out till date

Bidding in minor mineral auctions

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Upcoming minor mineral auction

Sr. No. District Block Area

(In Hect.) Resource

(Lakh Tonne) Reserve Price Bid

submission date

Low Grade Limestone 1 Raigarh Banipathar 2.2 2.97 16 15 Feb 2017 2 Raigarh chodha 1.1 1.81 16 15 Feb 2017 3 Raigarh Jamjhor 1.4 1.48 16 15 Feb 2017

4 Janjgir

champa Semariya 3.9 4.51 16 20 Feb 2017

Brick Clay 5 Surguja Unchdih 1.3 0.26 4 17 Feb 2017 6 Surguja Petla 1.7 0.35 4 17 Feb 2017

7 Janjgir

champa Devri 1.6 0.31 4 20 Feb 2017

8 Janjgir

champa Kanasda 1.1 0.21 4 20 Feb 2017

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Upcoming minor mineral auction

Sr. No. District Block Area

(In Hect.)

Type of Mineral

Concession

Reserve Price (In Rs.)

Bid submission

date

Quartz 1. KORBA PURAINA 6.505 PCQL 18 -

2 KORBA BIRDA 2.114 PCQL 18 -

3 KORBA BIRDA 2.235 PCQL 18 -

Granite (Black) 1. SUKMA MULA-KISOLI 9.790 PCQL 300 -

Proposed mineral evacuation infrastructure

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Increasing need for creating mineral evacuation infrastructure to meet future requirements

Iron Ore Production ►  Iron ore production in Chhattisgarh 2015-16 : 30 MT ►  Estimated iron ore production in Chhattisgarh in 2021-22 : 60 MT

Cement Production ►  Cement production in Chhattisgarh 2015-16 : 25 MT ►  Estimated cement production in Chhattisgarh in 2021-22 : 35 MT

Matching evacuation infrastructure to be developed to keep pace with increasing mineral and metal production in Chhattisgarh and Odisha

Increasing coal production in surrounding areas of Odisha and its movement to Maharashtra and Western States via Chhattisgarh

Coal Production ►  Coal production in Chhattisgarh 2015-16 : 128 MT ►  Estimated coal production in Chhattisgarh in 2021-22 : 350 MT

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Extensive infrastructure available for ease of evacuation and transportation

Existing Rail Network: •  Total length: 1,196 km •  Rail Density (km/ 100 sq. km area) is 0.89

against National avg. of 1.95 •  Only 16 out of 27 districts connected with Rail

Freight Earnings of SECR •  ~ 1/6th of Total Freight Revenue

Rail Projects being developed •  East and East West corridor - 311 km

(through SPV) •  Dalli-Rowghat - 95 km •  Rowghat-Jagdalpur 140 KM (through SPV)

SPVs are formed with equity participation from SECL, NMDC, SAIL, IRCON, CSIDC & CMDC

East West Corridor  

East Corridor  

•  1,196  km  constructed  in  last  150  years  •  Almost  50%  of  that  (546  km)  would  be  added  

in  next  2-­‐4    years  

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Proposed new rail infrastructure to meet future requirements

•  MoU was signed between Govt. of Chhattisgarh and Ministry of Railways

•  JV company will be formed with 51% (Govt. of Chhattisgarh) and 49% (Ministry of Railways) equity

•  3 p r o j e c t s h a v e b e e n i d e n t i f i e d f o r implementation: •  Raipur - Jharsuguda via Balodabazar (310 km) •  Dongargarh – Khairagarh – Kawardha –

Mungeli – Kota – Katghora linking Bilaspur (270 km)

•  Ambikapur – Barwadih (182 km) •  Equity in this JV will funded by CG Mineral

Development Fund (MDF) •  5% of royalty contributed to MDF

Presentation On

Implementation of Schemes of Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

15-02-2017

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Status of PMKKKY •  District Mineral Foundation Trust in every District.

•  A non-profit body for the interest and benefit of persons and areas affected by mining operations.

•  Expenditure in line with Pradhan Mantri Khanij Kshetra Kalyan Yojna (PMKKKY)

•  More than 1042 crores contribution till Jan, 2017. Second largest contributor after Odisha.

•  More than 31,586 developmental schemes worth Rs. 2462 crores under implementation across the state. Rs. 280 crores already spent.

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Important schemes under (PMKKKY) in Chhattisgarh (1/2) •  Integrated water purification and water distribution

schemes, piped water supply schemes, supply of pure drinking water through RO plants etc;

•  Model Villages & Conservation of water bodies.

•  Upgradation of District Hospitals, CHCs, PHCs &SHCs, Setting up of Telemedicine Centre, HR recruitment of Specialist MO, RMA & Med Consultants Etc, mobile medical check-up units,

•  Development of Education Hubs in LWE districts , Up gradation of Schools and Hostels infrastructure, Teachers Quarters, coaching for competitive exams, tackling the issue of lack of teachers by appointing guest lecturers,

•  Agriculture tools & Equipment, Promotion of Organic Farming, plug seedling nurseries for livelihood

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Important schemes under (PMKKKY) in Chhattisgarh (2/2) •  Special Drive for Speedy Reduction in

the rate of Malnutrition in 0-5 age group, strengthening of Aaganwadi infrastructure

•  Upgradation of District Disability rehabilitation Centre (Building, HR, Admin etc.) and Disable Community Assistance Centre at Village Level, skilling, provision of solar powered tricycles

•  Capacity Building, Skill Development through Livelihood Colleges

•  ODF villages and ODF Nagar Panchayats

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DMF Website

Monitoring of Schemes of Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) through web portal have been launched on

09 January, 2017 www.dmf.cg.nic.in  

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DMF Website

Monitoring of Schemes of Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) through web portal have been launched on

09 January, 2017 www.dmf.cg.nic.in  

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DMF Logo

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Thank You