JSW Steel, Kirloskar Ferrous win iron ore mines in Karnataka auction

Five iron ore mines were auctioned in Karnataka over the past three days. JSW Steel and Kirloskar Ferrous were among the winners, as was Minera Steel & Power.

Names of the other two were not available. The auction started on Tuesday and continued till late evening on Thursday. The total capacity of these mines is 5.73 million tonnes per annum.

Industry sources say Mysore Minerals Ltd was bid for by JSW Steel for 95.2 per cent over the base price. Minera and Kirloskar bagged Nidhi Mining and Bharat Mines & Minerals, respectively. The base price is based on estimated reserves.

In April 2013, the Supreme Court had directed the state government to cancel 51 C-category leases, for involvement in illegal mining. And, to re-allot these to end-users through a transparent bidding mechanism.

The Centre recently decided to put eight more mines on e-auction in Karnataka. These five had qualified. Each mine is to get at least three applications to qualify for auctioning. 

Total revenue to the state would depend on yearly production from these mines.