Dikhyaa Mohanty 
Around seven top mining and metal platers, which includes JSPL, Essel Mining, Tata, Rungta, MSPL, ArcelorMittal and Electrosteel were in the race for the mining block to which the JSPL has bagged the block.
According to the reports, the JSPL has bagged the block by committing to pay a premium of 118.1%, that means JSPL will have to pay Rs 118 to the state government for sale/transaction of every Rs 100 of iron ore from the block.
Kapil Mantri, executive vice president and head-strategy said “The mine isn’t cheap but is commercially viable and value-accretive as this is the best iron ore mine in Odisha with high Fe and low alumina ore. The mine has huge strategic importance for JSPL since after this we are over 50 percent secured for procurement of iron ore.”
Further the report added that the reserve, spread over 194.19 hectare, has been operated by the Essel Mining of the Aditya Birla group until March 2020. With the recent amendment in the mining auction rules, the successful bidder (JSPL in this case) may not have to seek fresh environment clearance for the working block. The iron ore block will be a great boost to cater to the raw material need of the JSPL’s 6MTPA steel plant at Angul.
During the ongoing auction process, the state government has planned to auction 11 mineral blocks for which total 123 bids have been received. The auction process would continue till September 29th, said official sources.
Worldone will buy out all the equity shares and redeemable preference shares of JPL held by JSPL for a total consideration of approximately Rs 7,401 crore. Out of total consideration, Rs 3,015 crore will be payable by cash, and the balance Rs 4,386 crore (approximately) will be by way of assumption and takeover of liabilities and obligations of JSPL in relation to inter-corporate deposits and the capital advances paid by JPL to JSPL.
Pic Courtesy – Google
