Auction route for mineral deposits not advisable: FIMI

FIMI Secretary General R K Sharma said, "Auctions/bids for a mineral deposit without knowing what it actually contains in terms of quantity, quality and the nature of the deposit is not a correct proposition".

"One cannot, certainly correctly and thoroughly, explore the deep-seated mineral deposits such as those of gold, lead/ zinc, copper, nickel and diamond," he said.

"No country in the world has adopted auction/bidding route except Russia and Kyrgyzstan for coal," he added.

He was talking to reporters on the sidelines of an event to brief about the three-day mining exporation convention and trade show starting here tomorrow.

Sharma said, it's not advisable to go for auction of a mineral deposit, adding, FCFS principle is the best mechanism to attract FDI together with state-of-the-art technology for exploration and exploitation of mineral resources.

He said the Bill is under the consideration of the Parliamentary Standing Committee on coal and steel.

Meanwhile, the event would be held with the sponsorship of the Ministry of Mines and in cooperation with Prospectors and Developers Association of Canada.