The auction price of 329 mines is not ideal due to the low price of low-grade raw materials in India.

Of the 329 mines, 48 are in operation and the rest are closed. The lease of these mines will expire in four months, when the supply of raw materials may be interrupted.

At present, these mines are being auctioned in the open market, but due to the instability of the global market and the generally low price of raw materials, many bidders are reluctant to bid at a high price.

At the same time, the government has the intention to cancel the mining leases of private commercial mines (for small mining institutions), sell these leases to large steel mills and mining companies, and require these mines to increase production capacity and sell the remaining raw materials on the basis of satisfying their own supply.

Among the auctioned mines, 232 are iron ore mines, only 24 of which are currently in operation, so the supply of iron ore may be severely tightened. There are 184 iron mines in Goa, which is still enforcing the mining ban.

Rksharma, Secretary General of the mining industry alliance of India, said that if the existing mining lease cannot be kept in the operated mines, the raw materials to be mined need to be completely transferred within seven months, and they also need to consider how and where to transfer these raw materials. (From LGMI)