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.)
6. 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.

7. 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.
Page 1 of 6
 9. The question answer session was followed by an address by the Hon'ble Minister
Shri Pradeep Jaiswal. The Hon'ble Minister informed the prospective bidders about
the success of the previous auctions held in the State of Madhya Pradesh and
informed the prospective Bidders that the Government of Madhya Pradesh is fully
prepared to co-operate and extend the necessary support to the prospective bidders
and thanked the prospective bidders for bestowing their trust and faith in the
Covernment of Madhya Pradesh.
10. It was discussed and requested by the bidders for Bunder Diamond block that, due
to complex nature and lot of clarifications/information required for the preparation
of 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 Rio
Tinto 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, for
Bunder Diamond Block auction, the following dates are decided for inspection and
site visit.

Sr. Activity Date Time Place Remarks

No

1. lnspection of 20th & 21st From 11:00 Collector Guidelines will

97 packets of August AM (as per Office, be issued by the
Diamonds. 2019 schedule) District state Govt.
Panna which is
required to be
followed

2. Site Visit 20th & 21sr Departure Departure & other

Vehicle
including area August, 10:00 AM from exPenses on
and core 2019 Circuit payment basis
inspection at house,
Chattarpur. Chattarpur

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 August
2019, at e-mail Id- dgm.auctionGomp.gov.in. The bidders are required to submit the
details 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 of
the 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

Page 2 of 6
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Government of Madhya Pradesh
Attendance Sheet - Pre-Bid Conferencg III'd Auction - August 05,2019, Hotel palash Residenry, Bhopal

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Directorate of Geology and Mining
Government of Madhya Pradesh
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Government of Madhya Pradesh
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 Annexure II - Issues raised during the Pre-bid Meeting

Sr. Discussion
Block Issues
No

1. Bunder A nodal officer and Single Department of Mineral Resources

Diamond Window should be established will be facilitating and coordinating
Block for getting all post auction processes.
consents/approval, clearances
etc. quickly keeping in view the
size of the block.

2. Bunder Will there be any support in No official study has been made by
Diamond terms of cost and whether any the State Govemment regarding
Block estimate has been made by the cost/ estimates and bidder needs to
State Govemment for assess at their own for
creation/Shifting of the water creation/shifti.g of water bodies/
bodies and electricity lines. electricity lines, however State
Govemment will provide necessary
support as per exisiting rules,
wherever required.

J. Bunder Regarding diamonds which were Rio Tinto had handed over 2,761.74
Diamond discovered by Rio Tinto during carats (:-r:.97 packets) of diamonds to
Block exploration, query was raised if the State Government. The same are
they will be available for in the custody of the District
assessing the Size, Quality, Collector, Panna. Valuations of these
Grade, etc and is there any diamonds have not been undertaken
valuation report of those by the State Govemment.
diamonds available. The Govemment will allow the
State
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 August
09, 2019. Bidders are requested to
check MSTC's auction platform
regularly for such updates.

4. Bunder Will the complete report for 954 The Govemment c;rn share the
Diamond Ha instead of 364 ha which is relevant details from the report (like
Block being put up for auction be made prospecting report and copy of
available to the prospective mining plan approved by IBM) for
bidders and In-principal 954 Ha prepared by Rio Tinto
approval for all the during earlier exploration
consents/clearernces will be given

Page 4 of 6

b/
Sr. Discussion
Block Issues
No
by the State Government'
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.

5. Bunder Area of 364Ha is not enough for It was communicated that Present
Diamond doing mining for diamond and area proposed for auction of the
Block more area of around 150 Ha block has been finalised after
should be made available to the discussion with Indian Bureau of
bidders. Mines and no change is ProPosed.

6. Bunder Can bidder acquire land for The application will be dealt with as
Diamond dumping and will State per law.
Block Govemment give Permission for
acquisition of the additional land
required.

7. Bunder Since the project falls in The Bidder needs to obtain the
Diamond protected forest and have tiger necessary consents, clearances and
Block zone near vicinity. There maY be approvals for commencement of
a possibility that requisite mining operations as Per law.
clearance specificallY forest
clearance for the Project maY not
be accorded bY concern
authority.
Bidders asked clarity on the Approval of the additional
Additional Condition imPosed condition by Govemment of India is
by the State Covemment awaited.
mentioned in Schedule VII of the
Tender Document.

8. Bunder Need clarity on Royalty payable As per Mineral (Auction) Rules,

Diamond on current selling price while
Block revenue sharing will as Per IBM
price. The same conflicts with the
Tender Document conditions
specified in clause
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
Page 5 of 6

Vr-
 accordance with rate of royalty
published in the Second Schedule of
the MMDR Act,1957.

Bunder In case there is a delaY in Obtaining the necessary consents/

Diamond obtaining the consents/ clearances/ aPProva1s is a

clearances/ aPProvals required prerequisite for commencement

of
Block
for commencement of mining mining operations. Hence a delay in
be treated
operations is beYond the control obtaining the same cannot
of the Bidder, the same should be as force maieure.
treated as a force majeure.

Badarkha The available area for doing Any change in the block boundaries
and Ghuisa mining oPerations is not at this stage is not Permissible.
Limestone appropriated (the available road
BIock is very narrow) keePing in the
view the scale of the block.

Whether the Charagah land is The charagah (Pasture) land maY

be
Kosdana
covered under the block area and made available as Per
aPPlicable
Limestone
in
Block clarity regarding the restricted laws and the area contained
zone. restricted zone has been alreadY
precluded from the block area.

Page 6 of 5