Mineral Blocks for Auction in 2018-19

1 4th National Conclave on Mines & Minerals Indore, Madhya Pradesh July 13th 2018 , Mineral Blocks for Auction in 2018-19 . Presentation by: Government of Chhattisgarh Mineral Resources Department INDUSTRY. 1. Structure of the Presentation Introduction to the State Chhattisgarh Advantage Status of Blocks auctioned till date Proposed Mineral Blocks for Auction for 2018-19 . 2. 2. Chhattisgarh :A resource rich state in central India Carved out from erstwhile state Madhya Pradesh on 1st Nov. 2000 as 26th state of the union. Area: lakh Sq. Km. Occupies ~4%. Produced ~16% of total value of minerals in India. [ CG: ~Rs 22,700 Cr. FY17]*. 28 major minerals including Coal, Iron ore, Limestone, Bauxite etc. District 27. Blocks 146. Tribal Blocks (scheduled area) 85. Villages 20279. Area Lakh sq. km. Population (as per 2011 Cr. census). 189 (National 324). Population Density *Source: IBM. 3. 3. Chhattisgarh : Success Profile Chhattisgarh has raised the bar 1st State To Auction non-coal Mining Lease 1st State To Auction Gold block +4911 Mineral Revenue 2017-18 1st State * Cr 1st State To Auction Minor Mineral Lease Formation of DMF Trust in all 27 districts and +9% Contribution of minerals in state's GDP Implementation on PMKKKY.

2 1st State 1st State 1st Production in Coal (2016-2017) To organize National Conclave on Mines &. To Implement NMET Minerals 2nd Production in Iron ore (2016-2017) 1st State To Implement Khanij Online A web based auto 2nd INDUSTRY. Value of Mineral produced in India (2016-17) approval and single click multi head payment facility portal for end to end tracking Leading Mineral Producer of India Contributes* Coal, Iron ore, of Highest Success Rate Highest FPO To Realize#. Limestone & of Bauxite 71% 27,156 Cr production of India of Mineral Auctions in India For Limestone Blocks in India Total Revenue to Government (*2016-17 figures). * Department Data **Source: IBM Nagpur # Revenue includes royalty, Auction premium, DMF and NMET. Source: Ministry of Mines 4. Chhattisgarh- Investment Advantage Mineral Resources Location Policies and and Connectivity Regulations Investment Advantage - Chhattisgarh Mineral Investors Marginal increase in share of mining contribution in India's GVA from in FY12 to in FY17.

3 Facilitation . Industries Marginal decrease in share of mining contribution in Chhattisgarh's GVA from in FY12 to in FY17. Skilled Manpower 5. Location and Connectivity : Land Locked State but well connected by Air and by Road Delhi Lucknow Ahmedabad Indore Bhopal Kolkatta Mumbai Bhubaneswar Hyderabad Bangalore Chennai UDAN (Ude Desh ka Aam Nagrik). Launched by Hon'ble PM on 14th Jun'18. 5 cities of Chhattisgarh : 1) Ambikapur 2). Bilaspur, 3) Jagdalpur 4) Raigarh 5) Raipur are connected with Andhra Pradesh (Vishakhapatnam) and Odisha (Jarsuguda & Utkela). 6. Connectivity- Railways New projects will ease movement of minerals Existing Rail Network Total length 1196 KM. Rail Density (km/ 100 sq. km area) National Avg. (km/ 100 sq. km area) Districts connected 16/ 27. Ongoing Rail Project: Beneficial commodities Bilaspur East Rail Corridor (164 KM) Coal, Cement, Steel, Aluminum, Bauxite East West Rail Corridor(136KM). Dalli Rajhara-Rowghat (95 km) Iron ore, Steel Rowghat-Jagdalpur (140 KM) Iron ore, Steel Future Rail Project: Beneficial commodities Dongargarh Khairagarh Coal, Cement, Bauxite, Kawardha Mungeli Kota- Iron ore katghora linking Bilaspur (270 km ).

4 Kharsia-Naya Raipur-Durg via Coal, Cement, Clinker, Baloda Bazar (240KM) Steel, Limestone Chirmiri-Nagpur Road Halt (11km) Coal Along with minerals, rail projects are also beneficial for the passengers as well. 7. Mineral Resources: Endowed with 28 different types of minerals Total Total % of Important Resources Resources in Resource in Mineral in India Chhattisgarh India (FY16). Dolomite (Mt)2 8085 919 Tin Conc. (Mt)2 30 Coal (Mt)1 301564 52533 Iron ore (Mt)2 20575 4031 Bauxite (Mt)2 3739 168 Limestone (Mt)3 184935 8959 Diamond (million carats)2. Gold (Tonne)2 494 Source: Statistics of Mineral Production, March, 2016, Indian Bureau of Mines. 1) Includes Reserves and Resource as on 2) Includes Reserves and Resource as on 3) Includes Reserves and Resource as on 8. Resource & Production Share of CG in Mineral Reserves, 2016-17 (in MT) Share of CG in Mineral Production, 2016-17 (in MT). Coal Iron Ore Limestone Bauxite Iron Ore Dolomite Tin Limestone Bauxite India's 697 192 313 25. India's 20575 8085 102275 184935 3739.

5 CG 139 31 32 2. CG 4031 919 15487 8959 168. Source: Indian Mineral Yearbook 2013, CG DGM Website Source: Ministry of Mines, CG Data of India's iron ore reserves in CG 21% of India's coal production in CG. 15% of India's Tin reserves in CG 16% of India's iron ore production in CG. 11% of India dolomite reserves in CG 15% of India's Tin production in CG. of India's limestone reserves in CG 10% of India's limestone production in CG. of India's bauxite reserves in CG 8% of India's bauxite production in CG. Chhattisgarh's contribution in mining sector in India is significant 9. Policies for Investors' facilitation Investor friendly and progressive policies Incentives, subsidies and exemptions: Interest Subsidy and fixed capital investment subsidy (upto 70%). Electricity duty exemption (Upto full exemption). Industrial Stamp duty exemption Exemption in land premium (upto 50%). Policy 2014-19 Exemption from entry tax (upto 7 years). Other incentives/subsidies for SC/ST category Single Window clearance Objectives Promoting Value Addition and Mining Development Institutional Development and Regulatory Reforms Mineral Policy Sustainable development and use of the State's Mineral wealth Creation of a conducive business environment to attract private investment (domestic/international).

6 Complete transparency in decision-making Source: CG State Government Policy and Notifications 10. Ease of Doing Business Top Achievers 2015 Consistently Leader in EoDB. 2016. 2017 Top Achiever State EASE OF DOING BUSINESS. Transparent Availability of Single window process land Chhattisgarh . a magnet for Fully business Environmental Construction computerized registration permit enablers Mineral enablers administration 11. Manpower and Resources Abundant availability of skilled and semi-skilled manpower Description Nos. 1st State to formulate Universities (State, Central, 17 "Right to Skill Act" 2013. Private). Livelihood College 27. Management colleges 23 including IIM Raipur IIT/ NIT 2 (IIT Bhilai & NIT Raipur). Skill Courses offered - 804. Engineering/Diploma colleges 95 Skill Upgradation - every year - Lakh ITIs 178. Till Now - 4 lakh Other colleges 461. (Government/Others). Source: Economic Survey of Chhattisgarh 2017-18, Department of School Education, Chhattisgarh, AICTE. Chhattisgarh has a high worker-participation rate (both Employment Generated in last 15 years male and female).

7 The state has one of the lowest reported losses of man- (Private Sector + Self employment Schemes): days attributed to labour problems in the country. 27,87,970. Recently, the Government introduced online registration for its workers. No labour Unrest 12. Mineral Based Industries : Chhattisgarh Chhattisgarh State- is home toMineral Based Industries large manufacturing industries Chhattisgarh - MTPA. 18% | Sponge Iron India - MTPA1. Chhattisgarh - MTPA. 15% | Aluminum India - MTPA2. Chhattisgarh - ~21 GW. 10% | Thermal Power India - ~222GW 3. Chhattisgarh - ~10 MTPA. 8% | Crude Steel India - 134 MTPA4. Chhattisgarh - ~27 MTPA. 5% | Cement India - ~500 MTPA5. Source : 1. SIMA, Steel Mint Report 2017. 2. Company Annual Reports, Website 3. Research, CEA. 4. IBEF Report, June 2018, Annual reports of the companies 5. Survey of Cement Industry and directory 2017 13. Minerals Auctions till now: Five Blocks successfully auctioned Estimated Expected Concession Value of Final Bid time of SN Block Name Mineral Type Recourses* % obtaining all (Rs.)

8 Crore) clearances April ' 2018. Baghmara, Balodabazar- 1 Gold PL cum ML (Ext Bhatapara proposed). 2 Kesla, Raipur Limestone ML March' 2019. Karhi Chandi, 3 Balodabazar- Limestone ML March ' 2019. Bhatapara 4 Kesla- II, Raipur Limestone ML 11894 May' 2020. Guma block, Palari, 5 District, Baloda Bazar - Limestone ML April' 2021. Bhatapara Total Rs 27,193 Cr Source: Ministry of Mines, Recourses includes royalty, Auction premium, DMF and NMET 14. Minerals Auctions Comprehensive approach to enhance bidders' interest Chhattisgarh Govt. treat this as an Eligibility criteria designed keeping Investor Event rather than as in mind potential bidder's interest, yet an Auction related event blocking non-serious players Proactively addressed all issues raised by bidders through pre-bid queries whether submitted before or after the query submission deadline. Not keeping any restrictions with Used a discounting factor to respect to size or location of arrive at Net Limestone Mineral Clinker or Cement plants.

9 Resource. Not including barriers Experience in any Mineral sought like Villages, Roads, etc. while for Gold block calculating Net Mineral Resource Reserve price was fixed at nominal level. Real price discovery would ultimately to be done by the market Tender document cost kept Timeline & Production in MDPA kept at at a nominal price a proportionate level 15. State Handholding LOI Grant LOI issued from administrative department MRD. Tender Committee for Auction chaired by Director, DMG. Online interface from LOI stage. From preferred bidder stage under process LOI issuance time after payment of 1st installment of Upfront Per. Security : Kesla Karhi Chandi Kesla II Guma Baghmara (CL). 17 days 20 days 27 days 22 days 43 days Clearances Secretary (Mining)/ DGM regularly co-ordinates with different departments for speedy clearances forest, revenue, environment. Land Chief Secretary (Chhattisgarh) regularly monitors the subject with district Acquisition collectors. 16. Proposed Mineral Blocks for Auctions in FY 2018-19 .

10 SN Block Name District Mineral Resources* (MT) Concession Type 1 Kandraja Surguja Bauxite ML. 2 Sapandar Surguja Bauxite ML. 3 Pathrai & Pathrai East Surguja Bauxite ML. 4 Sarbhanja Surguja Bauxite ML. 5 Salgi Kabirdham Bauxite ML. Balodabazar- 6 Kukurdih Limestone ML. Bhatapara 7 Kathia-Pachari Raipur Limestone ML. *Provisional figures 17. Location of the Proposed Blocks in FY 2018-19 . GSI Blocks Bauxite Limestone 18. Kandraja (Bauxite), Surguja Lease Area Map Land Types Mineral BLOCK FEATURES. Total Area 135 Ha Mineral RESOURCES. Total Mineral /s resources (MT) MT. IBM ASP of Mineral Awaited for Average Sale Price Estimated Value of Resources at IBM. Awaited for Average Sale Price ASP. Metal Grade- (>40% Al2O3, (Grade of Mineral ) & (Resources). SiO2 <4%). EXPLORATION STATUS. Exploration Level(G2/G3/G4 etc.) G2. Exploration Agency (GSI/DMG/MECL) DGM, Chhattisgarh Number of Boreholes and drilled 291. meterage 3128 M. KEY FEATURES. Water Availability (River/Other Source) Seasonal Streams/ Ground water Nearest Highway Distance (km) &.