Responses to Bidders’ Queries (Part 1) on Model Tender ......Mar 03, 2018  · The...

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Responses to Bidders’ Queries_Part 1 Page 1 | 22 Responses to Bidders’ Queries (Part 1) on Model Tender Document and Mine Specific Tender Documents for Auctions of Category “C” Iron Ore Mines (NIT Dated 30 Jan 2018) The replies/clarifications/responses shall be applicable to Model Tender Document (including MDPA) and all mine specific Tender Documents (including MDPAs) issued pursuant to the Notice Inviting Tender issued by the Director, Department of Mines & Geology, Government of Karnataka on 30 th Jan 2018. S.No. Reference Document/ Name of Mine Document Article/Clause/Page No. Comment/Views/ Suggestions Rationale Suggested text for amendment, if any Response Geological Reports 1. Sri H G Rangangouda ML No 2148 Geological Report on Estimation of Iron ore reserves in respect of Shri H G Rangangoud mine lease (ML no. 2148), Dist - Ballari, Karnataka Salient Features, Point No. 22, Pg. iii & Chapter-3; Lumps and Fines, Point No. 3.6.6, Pg. 14 Under Physical facts of Salient Features, Lumps & Fines content is mentioned as 67.08% & 32.92% respectively. In Chapter 3, Point no 3.6.6; Distribution % of Lumps (+10mm) and Fines (-10mm) has been given in 5 separate pits dug within the mined area. It is seen that the Lumps : Fines ratio of 67 : 33 as mentioned in the Salient Features, is the proportion found in a single pit of Lateritic ore. Whereas the average value of Lumps: Fines from the 5 pits taken together is about 29:71. From the above ratio, it is seen that the deposit is predominantly of fine ores whereas it is reported as lumpy, which is a discrepancy. The litho logs also show a predominance of fines ore. The Lumps: Fines ratio of the deposit should be corrected to 29:71 to reflect a predominantly fines deposit. The Lump and Fines ratio has been arrived by MECL by selective pitting and screening on different types of ores prevailing in the area and also with due field observations. Based on the field observations the geological map drawn is indicative of a more predominantly lumpy ore. The sample drawn and screened in the surface is not a true representative of the deep in-situ ore.

Transcript of Responses to Bidders’ Queries (Part 1) on Model Tender ......Mar 03, 2018  · The...

  • Responses to Bidders’ Queries_Part 1 P a g e 1 | 22

    Responses to Bidders’ Queries (Part 1) on Model Tender Document and Mine Specific Tender Documents for Auctions of Category “C” Iron Ore Mines (NIT Dated 30 Jan 2018)

    The replies/clarifications/responses shall be applicable to Model Tender Document (including MDPA) and all mine specific Tender Documents (including MDPAs) issued pursuant to the Notice Inviting Tender issued by the Director, Department of Mines & Geology, Government of Karnataka on 30th Jan 2018.

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    Geological Reports

    1.

    Sri H G

    Rangangouda

    ML No 2148

    Geological

    Report on

    Estimation of Iron ore reserves in respect of Shri H G Rangangoud mine lease (ML no. 2148), Dist - Ballari, Karnataka

    Salient Features, Point No.

    22, Pg. iii

    &

    Chapter-3; Lumps and

    Fines, Point No. 3.6.6, Pg.

    14

    Under Physical facts of

    Salient Features, Lumps &

    Fines content is mentioned as

    67.08% & 32.92%

    respectively.

    In Chapter 3, Point no 3.6.6;

    Distribution % of Lumps

    (+10mm) and Fines (-10mm)

    has been given in 5 separate

    pits dug within the mined

    area.

    It is seen that the Lumps :

    Fines ratio of 67 : 33 as

    mentioned in the Salient

    Features, is the proportion found

    in a single pit of Lateritic ore.

    Whereas the average value of

    Lumps: Fines from the 5 pits

    taken together is about 29:71.

    From the above ratio, it is

    seen that the deposit is

    predominantly of fine ores

    whereas it is reported as

    lumpy, which is a

    discrepancy. The litho logs

    also show a predominance of

    fines ore.

    The Lumps: Fines ratio

    of the deposit should

    be corrected to 29:71

    to reflect a

    predominantly fines

    deposit.

    The Lump and Fines ratio

    has been arrived by

    MECL by selective pitting

    and screening on

    different types of ores

    prevailing in the area and

    also with due field

    observations.

    Based on the field

    observations the

    geological map drawn is

    indicative of a more

    predominantly lumpy ore.

    The sample drawn and

    screened in the surface is

    not a true representative

    of the deep in-situ ore.

  • Responses to Bidders’ Queries_Part 1 P a g e 2 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    The data obtained from

    borehole is not indicative

    and cannot be

    considered due to the

    fact that majority of

    boreholes are RC.

    Considering the above

    factors the Lumps and

    Fines ratio have been

    arrived as 67:33 by

    MECL.

    2.

    Sri H G

    Rangangouda

    ML No 2148

    Tender

    Document

    Clause 5

    Value of Estimated

    Resources (VoER)

    Please confirm that Lumps:

    Fines ratio of 29%:71% has

    been used for estimating the

    VoER.

    In the Geological Report on

    Estimation of Iron ore reserves,

    Under Physical facts: Salient

    Features, Lumps & Fines

    content is mentioned as 67.08%

    & 32.92% respectively. This ratio

    is the lumps: fines ratio for

    lateritic ore which is one of the

    ore types found in the deposit.

    However, the Geological report

    also has a reference to the

    Lump: Fines ratio in five pits of

    all different ore types found in

    the deposit, the average of

    which is 29:71. This Lumps:

    Fines ratio ideally should have

    The Lump and Fines ratio

    has been arrived by

    MECL by selective pitting

    and screening on

    different types of ores

    prevailing in the area and

    also with due field

    observations.

    Based on the field

    observations the

    geological map drawn is

    indicative of a more

    predominantly lumpy ore.

    The sample drawn and

    screened in the surface is

  • Responses to Bidders’ Queries_Part 1 P a g e 3 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    been used for VoER as it is this

    ratio which is representative of

    the deposit.

    not a true representative

    of the deep in-situ ore.

    The data obtained from

    borehole is not indicative

    and cannot be

    considered due to the

    fact that majority of

    boreholes are RC.

    Considering the above

    factors the Lumps and

    Fines ratio have been

    arrived as 67:33 by

    MECL. And the same

    ratio has been

    considered for the

    calculation of VER.

    3.

    Sri H G

    Rangangouda

    ML No 2148

    Geological

    Report on

    Estimation of

    Iron ore

    reserves in

    respect of

    Shri H G

    Rangangoud

    mine lease

    (ML no.

    Survey data provided

    along with the Geological

    Report – AN-1.pdf

    The entire survey data has

    been provided in PDF form as

    a 90 - page document with

    5101 points of survey records.

    Survey pickups on the steep

    western slope of the property,

    within ML, are quite few in

    number and does not properly

    define the slope for

    topographic modelling.

    It would have been much more

    user friendly & time saving if the

    survey data could be provided

    as an ordinary ASCII file. The

    crest & toe strings of mine

    benches & dumps, dump

    boundaries, lease boundaries,

    topographic contours etc. should

    have been provided as DXF files

    (with Z values).

    The soft copy of the

    survey data in .dwg is

    available and same

    would be provided to the

    prospective bidders.

    Due to the inaccessibility

    of the areas towards the

    steep slopes data points

    captured are limited.

  • Responses to Bidders’ Queries_Part 1 P a g e 4 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    2148), Dist -

    Ballari,

    Karnataka

    Toe and crest lines of the

    mined benches are not

    provided separately, but those

    points are dumped along with

    all other survey points.

    Many of the survey points

    provided on the western slope of

    the block, to the NW and SW,

    have large RL differences with

    topographic contours taken from

    toposheet of the area.

    4.

    Sri H G

    Rangangouda

    ML No 2148

    ---do--

    Chapter-6; Statistical

    Parameters, Point No.

    6.1.1, Page 40

    Under statistical parameters

    estimated for entire 3071

    primary samples, standard

    deviation (SD) values of Fe%,

    Al2O3% and SiO2% are seen

    to be very low (0.05, 0.163 &

    0.107 respectively).

    Similarly, statistical

    parameters of 2248 primary

    zone samples also show very

    low SD values of Fe%,

    Al2O3% and SiO2% (0.03,

    0.230 & 0.279 respectively).

    From the assay data of bore

    hole samples provided in

    Annexures -AN-3B & 4, the

    standard deviations do not

    appear to be low.

    For the entire 3071 primary

    samples, the SD values of

    Fe%, Al2O3% and SiO2% are

    found to be about 16, 7 and 17

    respectively.

    The reported SDs

    should be corrected

    and other statistical

    parameters re-

    checked.

    S.D arrived are from the

    plot of log probability

    paper; the plots are

    provided for zone data

    only. However, sichel’s ‘t’

    estimator would be 54-56

    % Fe, 14.010-15.010 %

    SiO2 and 3.98-6.52%

    Al2O3.

    5.

    Sri H G

    Rangangouda

    ML No 2148

    ---do-- Contents:

    Annexure-3B/; Page 6, 10,

    13, 16, 22…

    Ore / Waste classification of

    samples in the litho logs:

    1) In BH no. MHGR-2 (depth from 29m to 40m) samples have been classified as Siliceous Iron ore but avg, Fe% of the zone is around 35% which is below IBM threshold value of Fe 45%.

    The litho codes of the

    samples should be

    corrected after their

    assay determination

    1) MHGR-2 data considered for estimation is from 0m to 20m only.

  • Responses to Bidders’ Queries_Part 1 P a g e 5 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    As per IBM norms, samples

    with Fe >45% should only be

    considered as ores.

    In the assay data provided for

    the litho logs, many samples

    with Fe

  • Responses to Bidders’ Queries_Part 1 P a g e 6 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    ore is +45% Fe and said

    average grade has been

    considered for

    demarcation of ore zone.

    6.

    Sri H G

    Rangangouda

    ML No 2148

    ---do-- Chapter-3; Primary

    Sampling, Point No.

    3.10.2, Pg. 20

    It is mentioned “The entire lot

    of chips and powder material

    were collected from boreholes

    drilled by Reverse Circulation

    drill. 50% mostly of chip

    samples have been

    thoroughly mixed to have

    the desired quantity of 500-

    600 gm and pounded to (-)

    100 mesh size by progressive

    reduction …”.

    81% of the total bore holes are

    RC drilled and 82% samples

    analyzed are RC samples.

    Moreover, the deposit is seen to

    be predominantly constituted of

    fines and powdery ores. In such

    samples, the proportion of chips

    will be much lesser than the

    powdery portion. During RC

    drilling, the entire powdery

    portion of such samples need to

    be captured for proper

    representation of the sample.

    None of it should be lost e.g.

    dispersed with the return air.

    Half of the entire sample

    collected must be used for

    further producing the sample

    pulp by step wise reduction.

    Chips should never be

    selectively chosen for the

    sample, as written in the GR,

    The procedure for

    primary RC sample

    preparation as

    described appears to

    be incorrect.

    QA&QC procedures

    should be followed for

    Sampling.

    The samples consisting

    of a mixture of both chips

    and fines are collected in

    a cyclone which is a part

    of the RC drill machine.

    The said samples drawn

    are subjected to

    Standard sample

    collection procedure by

    coning and quartering

    method. The loss of

    sample during collection

    is taken care of by

    plugging vantage points.

  • Responses to Bidders’ Queries_Part 1 P a g e 7 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    which is a total mis-

    representation.

    Was QAQC conducted during

    Sampling – like Field splits to

    test the robustness of the

    entire sample preparation

    process?

    7.

    Sri H G

    Rangangouda

    ML No 2148

    ---do-- Chapter-6; Check Sample

    Analysis, Point No. 6.2.6,

    Pg 41-44

    It has been mentioned that

    103 nos. of samples have

    been subjected to check

    analysis for testing reliability

    of the analysis

    It is mentioned that primary

    chemical analysis of the samples

    was carried out at MECL Lab but

    it is not mentioned where the

    analysis of check samples

    was carried out at the same

    lab or at a different lab and

    whether it is NABL certified.

    As per guidelines of the

    Mineral (Evidence) Rules,

    2015, at least 10% of the

    samples need to be checked

    in a NABL certified lab. That

    should be about 307 samples.

    In Text Plate 3 correlation

    between primary vs. check

    analysis the R2 value is not

    provided.

    MECL is a Govt. of India

    organization and

    analysis of check

    samples have been

    carried out in their lab.

    From the scotterplot the

    R2 is 0.710. After

    removal of two outlier

    samples viz. 40.8-

    MHGR-8/56 and 10.95-

    MHGR-14/67, the R2 is

    0.926, it is inadvertently

    not mentioned in the plot

    as well as in the text.

  • Responses to Bidders’ Queries_Part 1 P a g e 8 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    8.

    Sri H G

    Rangangouda

    ML No 2148

    ---do-- Chapter-6; Check Sample

    Analysis, Point No. 6.2.6,

    Pg 41-44

    Large difference in Fe%

    values seen in some check

    analysis, particularly for low

    iron value samples.

    In few check samples analysis

    large difference could be

    noticed for Fe%, like 40.8

    (MHGR-8/56) and 10.95

    (MHGR-14/67)

    Blanks and Standards should

    have been introduced within

    the analysis batches and the

    test results compared to

    check the accuracy of the Lab.

    QA&QC procedures

    should be followed for

    Sample Analysis

    Mostly, the analytical

    value has not shown

    much difference. Hence,

    the anomalous value of

    40.8 and 10.95, if it were

    being not considered as

    outlier the R2 is 0.926.

    Blanks and standard

    checks have been

    adapted during analysis.

    9.

    Sri H G

    Rangangouda

    ML No 2148

    ---do-- Chapter-6; Accuracy of

    Analytical Procedure, Point

    No. 6.2.0, Pg. 40-41

    No QA&QC procedure is

    mentioned to have been

    conducted to test the reliability

    of the analysis results, except

    for check analysis of 103

    samples

    Proper Check Analysis needs

    comparison of sample analysis

    to be done:

    1) Intra Lab: Repeat test in same lab.

    2) Inter Lab: Repeat test in another lab of the same agency / company.

    3) Umpire Lab: Repeat test in an NABL certified external lab.

    It is not mentioned whether

    Check Samples were prepared

    QA&QC procedures

    should be followed for

    Sample Analysis

    MECL is a Govt. of India

    organization and

    analysis of check

    samples have been

    carried out in their lab.

  • Responses to Bidders’ Queries_Part 1 P a g e 9 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    as Triplicates for conducting the

    above tests.

    10.

    Technical- G R

    of Mysore

    Mineral

    Limited

    Technical- G

    R of Mysore

    Mineral

    Limited

    Table No 5, Row No 4 &5,

    Page 31

    The quality of MMLR -19, from

    41.00mts to 60.00 metres has

    not been mentioned. Please

    give the quality of that

    particular borehole to know

    the actual average grade.

    The details of the quality of the ore has been mentioned in Table No 2 at page No 23 of text part of the GR.

    11.

    Ms

    Kanhaiyalal

    Dudheria ML

    No 2563

    Geological

    Maps and

    cross sections

    plates of

    Tender

    Document.

    Plates are in Pdf format Kindly provide all plates in

    AutoCAD Format.

    All Geological Sections and

    Maps needs to be provided in

    AutoCad format for cross

    verification.

    The soft copies of the

    plates in AutoCAD

    Format are available and

    same would be provided

    to the prospective

    bidders.

    12.

    Ms

    Kanhaiyalal

    Dudheria ML

    No 2563

    Geological

    Report of

    Tender

    Document

    Annexure and other

    analysis tabular data are in

    pdf format

    Kindly provide in Excel format. The soft copies of the

    annexure in excel format

    are available and same

    would be provided to the

    prospective bidders.

    13.

    Ms

    Kanhaiyalal

    Dudheria ML

    No 2563

    Geological

    Report of

    Tender

    Document

    Geological Report shows

    Bulk Density considered as

    3.5 for calculation of

    Resource /Reserve, where

    as in Resource calculation

    Whether the bulk density

    considered for calculation

    Resources/Reserves is 3.5 or

    3.47?

    Please clarify. For reserve/resource

    estimation, BD/Sp.Gr. of

    3.50 has been

    considered. (para 5.5.2,

    Page no.28)

  • Responses to Bidders’ Queries_Part 1 P a g e 10 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    sheets bulk density

    considered as 3.47.

    14.

    Ms

    Kanhaiyalal

    Dudheria ML

    No 2563

    Geological

    Report of

    Tender

    Document

    Detail Analysis of all the

    elements are not mention

    in the report such as S, P,

    and LOI etc.

    Please provide all elements

    data.

    These elements are

    critical for making

    special steel for end

    users.

    The radicals analyzed for

    Fe, SiO2 and Al2O3 only.

    15.

    Ms

    Kanhaiyalal

    Dudheria ML

    No 2563

    Geological

    Report of

    Tender

    Document

    In Summary of Mineral

    Block the only geological

    resource/reserves are

    given.

    Mineable resources/reserves

    should be provided.

    Grade wise Mineable

    resource estimation

    should be provided by

    considering 7.5m

    buffer from the

    boundary.

    Mineable

    resources/reserves

    assessment has not

    been carried out by

    MECL. However, the

    resources blocked at 7.5

    meter safety zone have

    not been considered for

    assessment.

    16.

    Ms

    Kanhaiyalal

    Dudheria ML

    No 2563

    Geological

    Report of

    Tender

    Document

    In some cross sections

    siliceous ore analysing

    below 45% Fe.

    Waste area was included for

    Reserve calculation.

    Please clarify. The assessment of

    reserve/resources has

    been carried out with

    cutoff grade of +45% Fe.

    17.

    H.G.

    Rangangouda

    ML No 2148

    Geological

    Maps and

    cross sections

    plates of

    Tender

    Document.

    Plates are in Pdf format Kindly provide all plates in

    AutoCAD Format.

    All Geological Sections and

    Maps needs to be provided in

    AutoCad format for cross

    verification

    The soft copies of the

    plates in AutoCAD

    Format are available and

    same would be provided

    to the prospective

    bidders.

  • Responses to Bidders’ Queries_Part 1 P a g e 11 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    18.

    H.G.

    Rangangouda

    ML No 2148

    Geological

    Report of

    Tender

    Document

    Annexure and other

    analysis tabular data are in

    pdf format

    Kindly provide in Excel format. The soft copies of the

    annexure in excel format

    are available and same

    would be provided to the

    prospective bidders.

    19.

    H.G.

    Rangangouda

    ML No 2148

    Geological

    Report of

    Tender

    Document

    Geological Report shows

    Bulk Density considered as

    3.5 for calculation of

    Resource /Reserve, where

    as in Resource calculation

    sheets bulk density

    considered as 3.47.

    Whether the bulk density

    considered for calculation

    Resources/Reserves is 3.5 or

    3.47?

    Please clarify. For reserve/resource

    estimation, BD/Sp.Gr. of

    3.50 has been

    considered. (para 5.4.2,

    Page no.33)

    20.

    H.G.

    Rangangouda

    ML No 2148

    Geological

    Report of

    Tender

    Document

    Detail Analysis of all the

    elements are not mention

    in the report such as S, P,

    and LOI etc.

    Please provide all elements data These elements are

    critical for making

    special steel for end

    users

    The radicals are

    analysed other than Fe,

    SiO2 and Al2O3 are

    given in the Annexure-

    VIA.

    21.

    H.G.

    Rangangouda

    ML No 2148

    Geological

    Report of

    Tender

    Document

    In Summary of Mineral

    Block the only geological

    resource/reserves are

    given.

    Mineable resources/reserves

    should be provided.

    Grade wise Mineable

    resource estimation

    should be provided by

    considering 7.5m

    buffer from the

    boundary.

    Mineable

    resources/reserves

    assessment has not

    been carried out by

    MECL. However, the

    resources blocked at 7.5

    meter safety zone have

  • Responses to Bidders’ Queries_Part 1 P a g e 12 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    not been considered for

    assessment.

    22.

    H.G.

    Rangangouda

    ML No 2148

    Geological

    Report of

    Tender

    Document

    In some cross sections

    siliceous ore analysing

    below 45% Fe.

    Waste area was included for

    Reserve calculation.

    Please clarify. The assessment of

    reserve/resources has

    been carried out with

    cutoff grade of +45% Fe.

    23.

    Ms Bharath

    Mines and

    Minerals ML

    No 2245

    - -

    Core drilling analysis is not given in the geological report

    Core drilling analysis

    have been furnished at

    Annexure-IV of GR.

    Tender Documents/ MDPA

    1.

    General

    Queries

    (Model Tender

    Document)

    Tender

    Document

    Clause 5 (a) Eligibility

    Explanation: (a) in the

    case of a firm or other

    association of individuals,

    only if all the members of

    the firm or members of the

    association are citizens of

    India

    What if any one of the

    Directors of a company is an

    Non Resident of India or

    Overseas Citizen of India

    card holder or Person of

    Indian Origin

    A company may have more than

    two Directors & If anyone is an

    NRI or OCI or PIO, can such a

    company bid?

    A company is a separate

    person from its

    promoters / shareholders

    / directors. Please refer

    Clause 5 (1) (a) of MMDR

    Act, which is reproduced

    in the Tender Document,

    as a part of section 5 of

    the Tender Document.

    2.

    General

    Queries

    (Model Tender

    Document)

    Bid Security Point 2, Format of Bid

    Security

    The Bank account details

    mentioned are State Bank of

    Mysore, can it be made in

    favour of State Bank of India

    The said Bank has merged with

    State Bank of India

    Please refer

    Corrigendum No. 1

    issued vide date 03 Feb

    2018.

  • Responses to Bidders’ Queries_Part 1 P a g e 13 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    3.

    General

    Queries

    (Model Tender

    Document)

    Mine

    Development

    & Production

    Agreement

    Clause 6.4, Utilisation of

    Mineral, beneficiation of

    low grade iron ore can be

    done by the successful

    bidder/lessee himself

    ……….. to be further used

    only for the specified end

    use by successful bidder/

    lessee himself

    Can the successful bidder/

    lessee send the mineral for

    beneficiation on the job work

    basis to third party but get it

    back for his end use only

    There may be space constraint

    at the mine area to set up a

    beneficiation plant but there is a

    beneficiation plant of a third

    party close by.

    The Bidder can

    beneficiate the ore in

    accordance with the

    terms of the Tender

    Document including

    specifically Section 6 of

    the MDPA.

    4.

    General

    Queries

    (Model Tender

    Document)

    Mine

    Development

    & Production

    Agreement

    Clause 6.5, the mining

    lease shall be for all

    minerals……….., by

    whatever name called

    framed by the concerned

    State Government under

    section 15 of the act

    Do the minor minerals excavated have to be stored separately & accounted or can it be dumped or sold

    It cost to excavate & segregate

    each & every minor minerals

    found & to be accounted

    Minor mineral shall be

    dealt with, as per

    provisions of the

    Karnataka Minor Mineral

    Concession Rules 1994

    including any

    amendments made

    thereof.

    5.

    General

    Queries

    (Model Tender

    Document)

    Mine

    Development

    & Production

    Agreement

    Clause 7.1.2

    The successful bidder shall

    make annual

    payments……the value of

    resultant shortfall quantity

    shall be calculated

    considering the following

    Can the annual payment be

    made by way of Bank

    Guarantee for the amount for

    certain period or by way of

    Letter of Credit

    As a way of financial facility

    available.

    No. Bank Guarantee or

    letter of credit in lieu of

    annual payments to be

    made by the Preferred

    Bidder/ Successful

    Bidder is not allowed.

  • Responses to Bidders’ Queries_Part 1 P a g e 14 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    6.

    General

    Queries

    (Model Tender

    Document)

    Mine

    Development

    & Production

    Agreement

    Clause 8.3,

    Any non-compliance with

    ……….a right to determine

    the mining lease without

    prejudice to any other

    proceedings to be taken

    against the mining lease

    holder

    Will the lease holder asked to

    surrender with or without

    penalties

    Clarification as to qualifying the

    penalty if any

    Clause 8.3 of the MDPA is self-explanatory in this regard.

    7.

    General

    Queries

    (Model Tender

    Document)

    Mine

    Development

    Production

    Agreement

    Clause 17,

    Event for Force Majeure

    If the mining is not possible

    due to local or village issues

    or the villagers hamper the

    movement of vehicle or stop

    production or other external

    interferences

    It is found that quite a few mines

    are not able to operate due to

    these local & external

    interferences

    It is a business risk,

    which needs to be

    assessed by the bidder.

    Please refer Clause 1.3

    of the Tender Document.

    8.

    Sri H G

    Rangangouda

    ML No 2148

    Tender

    Document

    Clause 10.2 Declaration of

    Successful Bidder:

    The Preferred Bidder shall

    be considered to be the

    “Successful Bidder” upon, -

    (f) having paid the actual

    expenses INR 8,04,62,037

    (Rupees Eight Crore Four

    Lakhs Sixty-Two Thousand

    Thirty-Seven) incurred by

    the Government of

    The Successful bidder should

    not be liable to pay Rs

    8,04,62,037 towards

    expenses incurred by Govt of

    Karnataka for mine

    exploration, DGPS survey and

    preparation of provisional

    R&R plans etc.,

    In other states auctions, the

    expenses spent towards mine

    exploration, DGPS survey and

    construction of pillars etc., is

    borne by the respective State

    Governments.

    The provisions of Tender

    Document and MDPA

    shall prevail.

  • Responses to Bidders’ Queries_Part 1 P a g e 15 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    Karnataka on mine

    exploration, preparation of

    Provisional R&R Plans,

    survey, construction of

    pillars and DGPS survey

    within 60 days of issue of

    letter of intent, the exact

    amount of which shall be

    indicated in mine specific

    Tender Document.

    9.

    Sri H G

    Rangangouda

    ML No 2148

    Tender document

    Clause 2.3. “Auction Rules” mean the Mineral (Auction) Rules, 2015 and its amendments.

    Since the concession area is

    reserved for ‘specified end

    use’, will the amendment to

    the Mineral Auction Rules in

    2017 allowing sale of 25% in

    the current financial year of

    the quantity of mineral

    excavated in the previous

    financial year be applicable to

    category ‘C’ mines

    Mineral (Auction) Amendment

    Rules,2017 allows sale of

    quantity of mineral equivalent to

    25% of total mineral excavated

    in the previous financial year for

    which end was specified can be

    sold in the current financial year.

    Clarification will be provided subsequently.

    10.

    Sri H G

    Rangangouda

    ML No 2148

    Tender

    Document

    Clause 10.3

    Execution of Mine

    Development and

    Production Agreement.

    The State Government and

    the Successful Bidder shall

    What would be the time frame

    to be considered for transfer

    of existing statutory

    approvals/clearances of the

    erstwhile Category C mining

    lease in favor of the

    successful bidder considering

    Annual payments including

    payments towards shortfall

    quantity shall come into effect at

    the end of 18 months from the

    date of issue of order by State

    Annual payments

    including payments

    towards shortfall

    quantity shall come

    into effect at the end of

    36 months from the

    Clarification will be

    provided subsequently.

  • Responses to Bidders’ Queries_Part 1 P a g e 16 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    enter into the MDPA upon

    the Successful Bidder

    having obtained all

    consents, approvals,

    permits, no-objections and

    the like as may be required

    under Applicable Law for

    commencement of mining

    operations. In its

    Judgment, the Supreme

    Court has directed that

    “existing statutory

    approvals/ clearances in

    favor of the lessee of the

    erstwhile Category C

    mining leases will be

    transferred in favor of the

    new lessees”. In its

    Judgment, the Supreme

    Court has further directed

    that “the concerned

    authority will take

    expeditious action for the

    grant of the statutory

    approvals such as the

    environmental clearance

    and approval/ TWP under

    the fact that the successful

    bidder is required to start the

    mine within18 months?

    Govt. acknowledging Preferred

    Bidder as the Successful Bidder.

    Whereas, Proviso to Rule 10 (6)

    Mineral (Auction) Rules, 2015,

    allows for a three year term

    extendable by a further 2 years

    from the issue of Letter of Intent

    (LoI) for execution of ML Deed.

    date of issue of Letter

    of Intent (LoI).

    The time frame may be

    increased to bring

    tender document

    clauses in conformity

    with Mineral (Auction)

    Rules, 2015 and its

    amendments.

  • Responses to Bidders’ Queries_Part 1 P a g e 17 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    the Forest (Conservation

    Act), 1980”.

    11.

    Sri H G

    Rangangouda

    ML No 2148

    Tender

    document

    Clause 14.1 Bid Security

    …Bid Security in the form

    of Bank Guarantee having

    a validity period of not less

    than 510 days from the bid

    due date….

    While in all other states, the

    validity of IPO and Bank

    guarantee is 180 and 240

    days respectively, this tender

    document mandates IPO and

    BG to be valid for 450 and

    510 days. Would the State

    Govt. want to re consider the

    revising validity period

    downwards?

    To bring in parity The provisions of Tender

    Document and MDPA

    shall prevail.

    12.

    General

    Queries

    (Model Tender

    Document)

    General If any participant has already

    purchased the Tender

    documents in Phase I/II but

    did not participated in Auction.

    Now again the same block

    has come for current auction,

    whether he has to purchase

    the same Tender for second

    time if he wants to participate

    in Auction?

    Bidders who have

    purchased Tender

    Document earlier shall

    not be considered in the

    current round of auction

    i.e. NIT dated

    30.01.2018.

    Bidders who want to

    participate in the current

    round of auction (NIT

    dated 30.01.2018) have

    to purchase the mine

    specific Tender

    Document by payment of

  • Responses to Bidders’ Queries_Part 1 P a g e 18 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    INR 200,000 (Rupees

    Two Hundred Thousand)

    per such Tender

    Document.

    13.

    Ms

    Kanhaiyalal

    Dudheria ML

    No 2563

    Tender

    document

    MDPA Point No.6.2

    Utilization of Mineral

    :Mineral extracted under

    the mining lease shall (i)

    be utilized solely for

    specified End use, (ii) not

    to be sold or otherwise

    disposed, either directly or

    indirectly; and (iii) Not to

    be sold with or without

    beneficiation

    As per Mineral (Auction)

    Amendment Rules 30th

    November, 2017, In Point5,

    the said Rules in Rule No.6, in

    sub-rule 4, in clause No.(ii) “

    Provided that quantity of

    Mineral equivalent to 25% of

    total mineral excavated in the

    previous financial Year for

    which End use was specified

    can be sold in the current

    Financial year.

    Please clarify. Clarification will be

    provided subsequently.

    14.

    H.G.

    Rangangouda

    ML No 2148

    Tender

    document

    MDPA Point No.6.2

    Utilization of Mineral

    :Mineral extracted under

    the mining lease shall (i)

    be utilized solely for

    specified End use, (ii) not

    to be sold or otherwise

    disposed, either directly or

    indirectly; and (iii) Not to

    As per Mineral (Auction)

    Amendment Rules 30th

    November, 2017, In Point5,

    the said Rules in Rule No.6, in

    sub-rule 4, in clause No.(ii) “

    Provided that quantity of

    Mineral equivalent to 25% of

    total mineral excavated in the

    previous financial Year for

    which End use was specified

    Please clarify. Clarification will be

    provided subsequently.

  • Responses to Bidders’ Queries_Part 1 P a g e 19 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    be sold with or without

    beneficiation

    can be sold in the current

    Financial year.

    15.

    Ms

    Srinivasalu,

    Ms

    Chennakesava

    Reddy,

    Mineral Miners

    and Traders,

    Nidhi Mining

    Company

    Clause 9

    Reserve Price

    9 Reserve Price

    The Reserve Price is 35%

    (thirty five per cent) of

    value of Mineral

    Despatched

    “Reserve Price” to be reduced in

    accordance with para 9 of the

    Judgement dated 30.07.2015 of

    The Hon’ble Supreme Court of

    India for the Mines which have

    not attracted bids above the

    Reserve price in the earlier

    rounds of auction

    9 Reserve Price

    The Reserve Price is

    5% (Five per cent) of

    Value of Mineral

    Dispatched

    The provisions of Tender

    Document and MDPA

    shall prevail.

    16.

    Ms

    Srinivasalu,

    Ms

    Chennakesava

    Reddy, Mineral

    Miners and

    Traders, Nidhi

    Mining

    Company

    Clause 8.1 8.1 Provided that if the

    number of technically

    qualified bidders is

    between three and five,

    then all the technically

    qualified bidders shall be

    considered as qualified

    bidders

    Mining Auction rules have been

    amended to consider less than 3

    bidders in 2nd round of auction

    itself

    Provided that if the

    number of technically

    qualified bidders is

    between below five ,

    then all the technically

    qualified bidders shall

    be considered as

    qualified bidders

    The ongoing round i.e.

    NIT dated 30.01.2018 is

    the first round after the

    notification of Mineral

    (Auction) Amendment

    Rules, 2017 on 30th

    November 2017.

    The provisions of Tender

    Document and MDPA

    shall prevail.

    17. Ms

    Srinivasalu,

    Ms

    19.4.2 The stamp duty

    payable for this Agreement

    Calculation of stamp duty to

    be given for already started

    mines

    To understand the calculation

    methodology of stamp duty

    Please refer Karnataka

    Stamp (Fourth

    Amendment) Act, 2016

  • Responses to Bidders’ Queries_Part 1 P a g e 20 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    Chennakesava

    Reddy, Mineral

    Miners and

    Traders, Nidhi

    Mining

    Company

    shall be borne by the

    Successful bidders

    18.

    Ms Bharath

    Mines and

    Minerals ML

    No 2245

    - -

    BMM Provisional R&R plan

    documents not available in the

    paid documents

    Provisional R&R plan of

    Ms Bharath Mines and

    Minerals ML No. 2245 is

    now available as part of

    the paid documents.

    19.

    Ms Bharath

    Mines and

    Minerals ML

    No 2245

    - -

    GST is applicable on Stamp

    Duty?

    As per Applicable Law.

    Dump area, mine capacity, R&R plan, etc.

    1.

    Sri H G

    Rangangouda

    ML No 2148

    Summary of

    the Mineral

    Block

    Total Area – 60.66 Ha

    Mineralised area - 15.7 Ha

    and Broken up area 44.4

    Ha

    Non Mineralised area -0.5

    Ha

    Rule 5(3), Mineral (Auction)

    Rules, 2015, provides for

    inclusion of area required for

    all activities falling under the

    definition of ‘Mines’ including

    sufficient space for dumping

    of overburden. OB Dumps are

    ideally situated in non-

    mineralised area in the

    Non-mineralized area identified

    is too small for setting up

    processing plant/OB dump/mine

    infrastructure etc.,

    The boundaries of all the

    “C” category mines have

    been fixed by CEC and

    approved by Hon’ble

    Supreme Court vide

    order dtd: 18.04.2013.

    Hon’ble Supreme Court

    on 30.07.2015 and

    13.09.2017 has directed

  • Responses to Bidders’ Queries_Part 1 P a g e 21 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    interest of mineral

    conservation.

    The total non-mineralised

    area in the lease is only 0.5

    Ha which by any means is not

    sufficient.

    Is there a scope of inclusion of

    additional area to

    accommodate all activities

    under the definition of

    ‘Mines’?

    to auction the “C”

    category mines with the

    boundaries as finalized

    by the Apex Court.

    Hence, alteration of the

    boundaries does not

    arise.

    2.

    Ms

    Srinivasalu,

    Ms

    Chennakesava

    Reddy, Mineral

    Miners and

    Traders, Nidhi

    Mining

    Company

    Draft R&R R&R quantity is not given Draft R&R Plan should have

    tentative quantity

    The permitted

    production as per draft

    R&R is …………..MT

    The provisional R&R

    plan has been prepared

    as per the CEC

    guidelines vide letter no.

    61/CEC/SC/2012-Pt.II

    dated 20.08.2015 and

    approved by CEC vide

    letter no. 2-

    76/CEC/SC/2015 dated

    02.11.2015.

    3.

    Sri H G

    Rangangouda

    ML No 2148

    Provisional

    R&R Plan

    2.9 Estimated Iron ore

    reserves by M/s MECL

    …Thus, 60.16 Million

    Tonnes can be considered

    to arrive at the permissible

    Rationale behind considering

    20 years instead of lease

    tenure of 50 years?

    For the sake of clarity. As per CEC guidelines

    approved by Hon’ble

    Supreme court of India

    and approved by CEC

    vide letter no. 2-

  • Responses to Bidders’ Queries_Part 1 P a g e 22 | 22

    S.No.

    Reference

    Document/

    Name of Mine

    Document Article/Clause/Page No. Comment/Views/

    Suggestions Rationale

    Suggested text for

    amendment, if any Response

    annual production capacity

    for next 20 years.

    61/CEC/SC/2017-Pt.III

    dated 31.01.2018. .