The government is working on a new method to auction mining leases to match commodity price cycles and investor appetite.
Early next month, the central government will release all available geological data on mineral reserves, said a government official, who asked not to be named. Based on this data, any investor can request a mining licence for the area of his choice. Once the government receives a request, it will invite bids from other investors too for that area. An auction will follow, based on which the block will be assigned.
The move will help customize mining leases depending on the risk investors are willing to take on specific minerals. This approach could also prevent instances like having to cancel mining lease auctions for want of investor interest when prices of certain commodities remain bearish. Read More…
Credit By: livemint.com
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