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FEB 16 2015

Hindalco wins Kathautia mine for Rs 2,860/tonne

  • Economic Times, ET Bureau / Hyderabad
  • Created: Mon 16th FEB 2015

Hindalco Industries on Sunday emerged as the successful bidder for the Kathautia coal mine in Jharkand at a price of R2,860 per tonne against the floor price of R1,978 per tonne. Winners for two more mines - Sarisatolli in West Bengal and Belgaon in Maharashtra - were yet to be announced at the time of going to press. The Jharkhand government is likely to garner R6,800 crore, over a period of 30 years, from the Kathuatia mine that has geological reserves of an estimated 30 million tonnes (mt).

Sarisatolli is reserved for the power sector and the rate discovered till late in the evening was R310 per tonne. As was the case with Talabira-I on Saturday, Sarisatolli also opened with the lowest bid of Rs zero per tonne, turning the reverse bidding process into a forward bidding one with the floor price of R100 per tonne and the highest bid the winning one. This means that the winner cannot pass through the cost of fuel to consumers and the entire amount is payable to the state.

The Belgaon mine, located in Maharashtra, saw bids coming in at floor price of R765 per tonne and going up to R1,537 per tonne later in the evening. The mine has geological reserves of 14.18 mt and is reserved for sponge iron production.

The Sial Ghoghri block in Madhya Pradesh went to the Anil Ambani-owned Reliance Cement for R1,402 per tonne, higher than the starting price of R1,002.

Meanwhile, the coal ministry has also announced that 130 bidders have technically qualified to participate in the final round of auction for 21 schedule III (near operational) blocks.

Tags

Madhya Pradesh Maharashtra Jharkhand West Bengal Coal Hindalco Power

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