Right of first refusal has been taken away in an amendment I guess.
This is how the odisha mine auction happened- and original owners lost the mines- and JSW/Tata acquired them at huge premium.
There is no preference to anyone.
Rules are very transparent.
The highest bidder wins the mine- no preference to anyone.
Auctions happening at 100%+ premium- so the winner makes zero profits from the mines.
So, in that case, whats the total revenue/sales growth over 10 yrs for sandur? even if non-mining business grows many times. I guess it will be less than 8%.
Please correct if I am wrong.
Iron ore will become a scarce resource in another 10 yrs as steel industry demand will jump due to rising GDP per capita.
You can build new steel factories with money, but iron ore is a natural, limited resource.
This is why Tata steel and JSW are bidding for iron ore mines even at 120% premium- they are foreseeing the physical scarcity of iron ore 10 yrs from now.
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