Bihar govt processes auction for iron ore mines worth INR 200 bn

According to an official, the Bihar government has started the process of auctioning glauconite and iron ore reserves worth INR 200 billion in the districts of Rohtas and Jamui and will engage SBI Capital Markets to create a report for the process. In order to start the auction process, the government recently met with a number of interested parties, according to Additional Chief Secretary-cum-Mines Commissioner Harjot Kaur Bamhrah. According to her, the state government will soon issue an order appointing SBI Capital Markets as the transaction advisor and asking them to recommend the terms and conditions on which the auctions should be held.

Glauconite, a major potassium source in fertilisers, helps to increase soil fertility while iron ore is a crucial component of steel production. Prior to the establishment of Jharkhand in 2000, there was a misconception that Bihar had lost its mineral richness, she added. In reality, Bihar possesses enough mineral resources to expand its economy. The Bihar government has started a procedure to authorise mining activities for the state's mineral deposits for the first time since the establishment of Jharkhand. Additionally, she added, the state government has chosen to modify its industrial promotion strategy in order to include clauses that will promote private investment in the mining industry.

In a recent meeting presided over by the state chief secretary, it was decided to make the necessary revisions to the Bihar Industrial Promotion Policy to encourage private participation in the mining sector, similar to what the governments of Odisha, Chhattisgarh, and Jharkhand have done. In the Pipradih and Chutia-Nauhatta blocks of Rohtas district, the state government has set aside two glauconite mines valued INR 140.48 billion for auction. Additionally, she added, the Mines and Geology Department has decided to permit mining operations in the INR 60 billion worth of iron ore resources in Jamui.

According to Bamhrah, the SBI CAPS would determine the details of the mineral auction, including block demarcation and evaluation, the tendering process, the determination of the reserve price, and eligibility requirements. She noted that the state has seven blocks of rare minerals available for the auction.