MINERAL RESOURCES DEPARTMENT

DIRECTORATE OF GEOLOGY & MINING,

MADHYA PRADESH

Minutes of the Pre-Bid Conference of the III'd Auction held on August 05.2019

1. The pre-bid conference for 3*rAuction was held in the Presence of Hon'ble Minister

Shri Pradeep Jaiswal, Mineral Resources Department, Government of Madhya

Pradesh and Shri Neeraj Mandloi, IAS, Principal Secretary, Mineral Resources

Department, Government of Madhya Pradesh (GoMP) on August 05,2019 at Hotel

Palash Residency, TT Nagar, Near Dasshara Maidan, New Market, Bhopal. The list

of participants is placed as Annexure l.

2. At the outset, the Director, Directorate of Geology and Mining (DGM), welcomed the

Hon'ble Minister Shri. Pradeep Jaiswal along with Principal Secretary Shri. Neeraj

Mandloi, IAS, and all the participants.

3. The participants w,ere informed about the current auction of the 13 major mineral

blocks (12 Blocks for Mining Lease and 1 block for Composite Licence) for Limestone,

Basemetal, Gold, Bauxite, Graphite and Diamond mineral in the state of Madhya

Pradesh.

4. SBI Capital Markets Ltd. (SBICAP)acting as the Transaction Advisor to assist the

DGM, GoMP for the e-auction of these mineral blocks made a detailed presentation

covering the following topics;

a) Details of the 13 blocks identified by DGM and their salient features (name,

location, Area of the Block, Estimated Resources, VE& Tender Document Price

etc.)

b) Detailed insights on the two stage ascending forward e-auction Process for grant

of mining lease and composite licence (eligibility conditions, e-auction Process/

general terms and conditions etc.)

5. SBICAP's presentation was followed by a presentation of MSTC Ltd. MSTC Ltd.

w,hich is the auction platform provider for the current auction Process and their

presentation covered the following topics;

a) Brief about the MSTC Ltd.

b) Demonstration on the e-auction process (bidder registration process, access and

availability of the documents (Free & Paid), demonstration on 2 Stage ascending

forward e-auction Process, usage of digital signatures etc.)

After the presentation by SBICAP and MSTC, the forum was oPened for a question

answer session. It was clarified to the Bidders that no specific decision with regards

to the queries/ concerns may be drawn in the pre-bid discussions and final responses

shall be uploaded by the DGM on MSTC's website in the form of minutes of pre-bid

meeting, as per the timelines mentioned in the Tender Document.

Further, the Bidders were informed that they may further send their queries by the

end of day of August 06, 2079, which will be addressed suitably and responses shall

be uploaded on the MSTC website.

8. The issues that were discussed during the pre-bid meeting are attached as Annexure

il.

6.

7.

Page 1 of 6

9. The question answer session was followed by an address by the Hon'ble MinisterShri Pradeep Jaiswal. The Hon'ble Minister informed the prospective bidders aboutthe success of the previous auctions held in the State of Madhya Pradesh and

informed the prospective Bidders that the Government of Madhya Pradesh is fullyprepared to co-operate and extend the necessary support to the prospective biddersand thanked the prospective bidders for bestowing their trust and faith in theCovernment of Madhya Pradesh.

10. It was discussed and requested by the bidders for Bunder Diamond block that, dueto complex nature and lot of clarifications/information required for the preparationof Techno-commercial responsive bid. The bid due date needs to be extended by 4

(four) weeks for Bunder Diamond Block.

Hence, It was decided in the pre-bid meeting to extend the e-auction timelines by 4(four) weeks for the entire mineral blocks and accordingly the corrigendum will be

issued and uploaded on MSTC website.

11. The querry was raised regarding diamonds which were discovered by RioTinto during exploration, if they will be available for assessing the size, quallty,grade etc. and is there any valuation report of those diamonds available. Hence, forBunder Diamond Block auction, the following dates are decided for inspection and

site visit.

Interested bidders are requested to submit their preferences for site visit and core

inspection at chhatarpur and inspection of Diamonds at Panna, latest by 16tn August2019, at e-mail Id- dgm.auctionGomp.gov.in. The bidders are required to submit thedetails of persons authorised by them, alongwith photo-id of the concemed.

Note: The bidders may kindly note that the last date for uploading responses to queries ofthe bidders on MSTC e-auction portal is September 19, 20L9 (or as pq the extendeil

timelines, if any). These pre-bid meeting minutes do not form part of the Tend.Tffix;lnL

Dqe€{e+Geology and Mining

Madhya Pradesh

lnspection of97 packets ofDiamonds.

20th & 21st

August2019

From 11:00

AM (as perschedule)

CollectorOffice,DistrictPanna

Guidelines willbe issued by the

state Govt.which is

required to be

followed

Site Visitincluding area

and core

inspection atChattarpur.

20th & 21sr

August,2019

Departure10:00 AM

DeparturefromCircuithouse,

Chattarpur

Vehicle & otherexPenses onpayment basis

Page 2 of 6

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Annexure II - Issues raised during the Pre-bid Meeting

Department of Mineral Resources

will be facilitating and coordinatingall post auction processes.

A nodal officer and Single

Window should be established

consents/approval, clearances

etc. quickly keeping in view the

size of the block.

BunderDiamondBlock

No official study has been made bythe State Govemment regardingcost/ estimates and bidder needs to

assess at their own forcreation/shifti.g of water bodies/electricity lines, however State

Govemment will provide necessary

support as per exisiting rules,

wherever required.

Will there be any support interms of cost and whether any

estimate has been made by the

State Govemment forcreation/Shifting of the waterbodies and electricity lines.

BunderDiamondBlock

Rio Tinto had handed over 2,761.74

carats (:-r:.97 packets) of diamonds tothe State Government. The same are

in the custody of the DistrictCollector, Panna. Valuations of these

diamonds have not been undertakenby the State Govemment.

The State Govemment will allow the

bidders a one-time opportunity to

examine the diamonds, examine the

core samples and undertake site

visit as per guidelines. The date and

time will be communicated to the

Bidders via a notice on MSTC

auction platform latest by August09, 2019. Bidders are requested to

check MSTC's auction platformregularly for such updates.

Regarding diamonds which were

discovered by Rio Tinto duringexploration, query was raised ifthey will be available forassessing the Size, Quality,Grade, etc and is there any

valuation report of those

diamonds available.

BunderDiamondBlock

The Govemment c;rn share therelevant details from the report (likeprospecting report and copy ofmining plan approved by IBM) for954 Ha prepared by Rio Tintoduring earlier exploration

BunderDiamondBlock

Will the complete report for 954

Ha instead of 364 ha which isbeing put up for auction be madeavailable to the prospectivebidders and In-principalapproval for all theconsents/clearernces will be given

Page 4 of 6

b/

Sr.

NoBlock Issues Discussion

1.

for getting

2.

J.

4.

Discussion

Bidder may PaY the requisite

and send in their request

email/post for obtaining

necessary documents.

The State Govemment shall not

provide any Prior in-PrinciPle

approvals/ consents. The Bidder

needs to obtain all the necessary

consents and aPProvals for

commencement of mining

operations as per law.

by the State Government'

It was communicated that Presentarea proposed for auction of the

block has been finalised after

discussion with Indian Bureau of

Mines and no change is ProPosed.

Area of 364Ha is not enough for

doing mining for diamond and

more area of around 150 Ha

should be made available to the

bidders.

BunderDiamondBlock

The application will be dealt with as

per law.Can bidder acquire land for

dumping and will State

Govemment give Permission for

acquisition of the additional land

required.

BunderDiamondBlock

The Bidder needs to obtain the

necessary consents, clearances and

approvals for commencement of

mining operations as Per law.

Approval of the additional

condition by Govemment of India isawaited.

Since the project falls in

protected forest and have tiger

zone near vicinity. There maY be

a possibility that requisite

clearance specificallY forest

clearance for the Project maY not

be accorded bY concern

authority.

Bidders asked clarity on the

Additional Condition imPosed

by the State Covemmentmentioned in Schedule VII of the

Tender Document.

BunderDiamondBlock

As per Mineral (Auction) Rules,

2015 as amended from time to time,

the lessee is required to pay auction

premium in accordance with Rule 8

and in addition to royalty, DMF,

NMET, etc. in accordance with Rule

13. The levvins of

Need clarity on Royalty payable

on current selling price whilerevenue sharing will as Per IBMprice. The same conflicts with the

Tender Document conditionsspecified in clause

BunderDiamondBlock

Page 5 of 6

Vr-

Sr.

NoBlock Issues

5.

6.

7.

8.

accordance with rate of royalty

published in the Second Schedule of

the MMDR Act,1957.

Obtaining the necessary consents/

clearances/ aPProva1s is a

prerequisite for commencement of

mining operations. Hence a delay in

obtaining the same cannot be treated

as force maieure.

In case there is a delaY inobtaining the consents/

clearances/ aPProvals required

for commencement of mining

operations is beYond the control

of the Bidder, the same should be

treated as a force majeure.

BunderDiamondBlock

Any change in the block boundaries

at this stage is not Permissible.The available area for doing

mining oPerations is not

appropriated (the available road

is very narrow) keePing in the

view the scale of the block.

Badarkhaand GhuisaLimestoneBIock

The charagah (Pasture) land maY be

made available as Per aPPlicable

laws and the area contained in

restricted zone has been alreadY

precluded from the block area.

Whether the Charagah land iscovered under the block area and

clarity regarding the restricted

zone.

KosdanaLimestoneBlock

Page 6 of 5