Global Mining Summit Mr.S Y Iman

1
Mineral Auctions in India Auctions to Production
Challenges Suggestions
2
Mineral Rights Allocations
Which system of mineral rights and method of
allocation would be best?

• Objectives of Rights allocation
• Equity
• Efficiency

• Types of allocation system
• First come first served (FCFS) systems
• Work program bidding
• Cash bidding (auctions)

• Types of mineral rights
• Restrictive exploration/mining rights
• Relatively unconditional rights

3
MMDR Act, 2015
Stakeholders

• Type of licenses/lease
• Mining Lease (ML)
• Composite License (CL prospecting license cum
  mining lease)
• Grant of Non-exclusive Reconnaissance Permit
  (NERRP) in case of inadequate evidence of mineral
  content.

4
Investors focus in the discovery and speculation
phase
5
Investors focus in the Mine development and
production phase
6
Challenges

• Delay in grant of all clearances even after
  successful auction
• Overhaul of the sector to streamline approvals
  and development processes
• Time Cost overrun in operationalization of
  mines even after successful auctioning process
• Collaboration between all stakeholders
• Positive Interest from Investors Financial
  institutions
• Infrastructure development from mine site to
  market place
• Skilled Resource availability

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7
Suggestions

• Delay in the grant of all clearances and
  approvals that were expected to be granted as
  soon as the blocks were taken over by winning
  bidders
• Efficient and quick development of mining blocks
  to justify the nature of winning bid prices and
  level of investment required for developing these
  blocks.
• Adequate support from the government- Central,
  State Local.
• Consensus building with all stakeholders
  specially local communities before Auction the
  Auction takes place
• Transparent Auction process Development of
  execution plan for the Auction process
• Proactive support by governments in resolving any
  issues arises even after Auctions
• Sustenance of legal frameworks during the life
  time of Mine

8

• Thank You..

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