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Non-coal mines bid may end up in scam

As the government goes ahead with plans to auction non-coal minerals, miners’ body FIMI on Tuesday opposed the move saying it has the potential of becoming a “bigger” scam than coal and 2G put together.

“As will be known in times to come, auction route is fraught with danger of as much scam as might have happened in the past. It has the potential of being bigger in scope and ramifications as the so-called coal and 2G scams put together,” Fede-ration of Indian Mineral Industries (FIMI) said.

“Unless governance improves which is in the hands of government-/politicians, any alternative thought or suggestions such as auctions will end in bigger and bigger scams and the country will pay heavy price,” it added.

The FIMI said that auction on the basis of the “mineralisation” instead of “fully-explored” resources will lead to distortion of the auction process as reso-urces and their quality would either turn out to be higher or less with serious consequences for the government or the buyer.

The government is set to go ahead with the auction route for allocation of minerals such as iron ore and bauxite, bringing changes to the Mines and Minerals Development and Regula-tion (MMDR) Act, 1957.

“Auction of the prospecting licences, particularly of deep-seated minerals, without reconnaissance is just unthinkable. One does not know what minerals, its grade and depth, will be available,” FIMI said adding no country in the world adopts the route of auction for mineral development.

Source: PTI