Govt to hold first-ever auction of diamond mine in May

By: |
Updated: April 8, 2016 10:10:28 PM

In a first for the country, Madhya Pradesh will bring out notice inviting tenders to auction diamond mine, situated in Panna district, next week.

diamond mine auction, mine auction, Rio Tinto, Vedanta ltd, New Delhi, indiaVedanta Ltd won India?s first-ever auction of a gold mine last month as the nation opened up the sector to private companies to curb overseas purchases of the metal that cost it billion last year. (Reuters)

In a first for the country, Madhya Pradesh will bring out notice inviting tenders to auction diamond mine, situated in Panna district, next week.

“The mines will be auctioned by next month,” Mines Secretary Balvinder Kumar said.

He further said the state government will come out with the NIT for the mining lease by next week, and thereafter it takes around 3 weeks for the tender process.

At present, state-run iron ore miner NMDC is the only organised producer of diamond in India from its Majhgawan mine at Panna. It produces around 81,000 carats annually.

Besides, about 400 carats is also being produced from shallow diamond mines in Panna and parts of Satna district.

Madhya Pradesh has a proved and probable diamond reserve of about 10,45,000 carats. Panna has a estimated total reserve of 976.05 thousand carats.

In February, the country auctioned its first gold mine. Metals conglomerate won the composite licence for Baghmara (Sonakhan) gold mine in Chhattisgarh with its highest bid of 12.55 per cent of IBM (Indian Bureau of Mining) price of Rupees 74,712/troy ounce (1 troy ounce = 31.10 gram).

States have identified 42 mines bearing minerals such as iron ore, bauxite, gold and limestone for auction in the first phase.

Of these, six mines have been successfully auctioned and will earn a total revenue including royalties, DMF and NMET of around Rs 18,108 crore.

 

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition
FinancialExpress_1x1_Imp_Desktop