February 25, 2021

Indian & World Live Breaking News Coverage And Updates

Indian & World Live Breaking News Coverage And Updates

, Adani to own 1st coal mine in India, bids inch up on Day 2 of auctions, Indian & World Live Breaking News Coverage And Updates

Adani to own 1st coal mine in India, bids inch up on Day 2 of auctions

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Adani to own 1st coal mine in India, bids inch up on Day 2 of auctions

2020-11-03 20:01:37

For the first time, port-to-power conglomerate Adani Enterprises will own a coal mine in India. The company is the largest mine developer and operator (MDO) or end-to-end mining contractor in India with contracts for 11 mines and one coal washery.

Stratatech Mineral Resources, a subsidiary of Adani Group, placed the highest closing bid for Dhirauli mine in (MP). It edged out the only other bidder Industries by quoting 12.5 per cent premium on the revenue share.

Dhirauli mine in the Singrauli district has a peak rated capacity of 3 million tonnes per annum (mtpa). The mine is in proximity to Adani’s MDO project in Suliyari coal mine owned by the Andhra Pradesh government. Under the MDO model, Adani takes up mining operations on a turnkey basis. It has MDO contracts of state-owned utilities.

The only other mine that owns is the Carmichael coal mine in Australia. The group is constructing one of the world’s largest coal mining and rail connectivity from port to mine projects in Australia.

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Adani won only one mine during the held in 2014 for awarding for captive/self-use. However, two years later, the coal block was deallocated and given to Jindal Steel & Power.

Another big name that grabbed a coal block to commercially mine and sell coal was & Industries (EMIL) of Aditya Birla Group.

EMIL placed the highest bid for Bandha mine in MP. It quoted a premium of 21 per cent over the floor price.

For the first time, the Centre is awarding coal mines for commercial mining and sale to private It amended the Coal Mines (Special Provisions) Act, 2015, in May. The two-part auction commenced last month when submitted their technical bids comprising eligibility and initial price offer for 38 on offer.

The second and final round of placing financial bids through e-auction started on Monday with five mines. and were among the winners on Day 1. On Tuesday, four mines were up for auction.

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Andhra Pradesh Mineral Development Corporation (APMDC), the only state-owned company participating in the commercial coal auction, placed the highest bid for Brahmadiha mine in This is the smallest mine on offer with 0.15 mtpa capacity. However, APMDC placed a premium of 41 per cent for the mine — the highest bid so far.

Sahapur West mine in MP received the highest closing bid from Sarda Energy & Minerals. The company quoted a premium of 26 per cent over the floor price.

According to the auction methodology, the bid parameter is on revenue-share mode. The participants bid for a percentage share of revenue payable to the state government from the production and sale of mined coal. The floor price is kept at 4 per cent of revenue share. Bidders place bids in multiples of 0.5 per cent of revenue share till it reaches 10 per cent and thereafter in multiples of 0.25 per cent of revenue share.

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