Coal news and updates

RFR for captive users in non-coal minerals auction

January 13: Captive users of minerals will have the right of first refusal (RFR) in case they are outbid in the auctions that will be conducted within the next few months following the approval by the President of India to amend the MMDR Act, 1957, according to information available with ICMW.

“Once the auction is done, a captive miner will have the right of first refusal for sure,” a source in the Ministry of Mines told ICMW.

Asked whether the existing captive miners of iron ore, limestone, bauxite and manganese ore stands to lose immensely in case they are outbid during the auction, the source replied in negative.

“If the Government of India has decided not to automatically renew the licenses then there cannot be any guarantee to ensure that existing mine owners would get the leases back. However, if the existing owner is outbid in the auction, then he will have the option to win back the mine after matching the bid price. This will ensure that existing captive miners do not face any difficulty,” the source explained.