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Mineral Profile of Jharkhand

1. Coal (Strategic Energy Mineral)

Jharkhand is among India’s top coal-producing states, supplying fuel to power plants, steel units, sponge iron manufacturers, brick kilns, and MSMEs.

Major Coal Belts

  • Jharia Coalfield (Dhanbad region)

  • North & South Karanpura (Ramgarh–Hazaribagh–Chatra belt)

  • Bokaro Coalfield

Primary Consumers

  • Thermal power plants

  • Steel & sponge iron units

  • Brick kilns and industrial MSMEs

Key Insight:

Coal movement in Jharkhand is heavily monitored. E-auction sourcing ensures GST, royalty, and transit compliance.

2. Iron Ore (Core Steel Mineral)

Jharkhand hosts significant iron ore reserves, supporting integrated steel plants and secondary steel units across eastern India.

Key Iron Ore Regions

  • West Singhbhum (Noamundi belt)

  • Saraikela-Kharsawan region

Usage

  • Steel plants

  • Sponge iron units

  • Pellet manufacturing

Regulatory Sensitivity

Iron ore auctions involve:

  • Strict end-use conditions

  • Royalty, DMF & NMET obligations

  • High scrutiny during transportation

3. Industrial & Minor Minerals

Jharkhand also supplies critical industrial minerals used in cement, metallurgy, construction, and manufacturing.

Key Industrial Minerals

  • Limestone

  • Dolomite

  • Quartz & Quartzite

  • China clay

  • Mineral rejects & fines

Key Consuming Sectors

  • Cement & lime plants

  • Flux & refractory units

  • Construction material MSMEs

Commercial Note:

For industrial minerals, logistics cost and grade quality often matter more than bid price.

 

Mineral Auctions & Legal Sourcing Framework in Jharkhand

Mineral allocation in Jharkhand is governed by:

  • State mining & mineral concession rules

  • GST laws

  • Environmental and transit regulations

To ensure transparency and eliminate discretionary allocation, auctions are conducted digitally—primarily via MSTC Limited and state-authorized systems.

Why e-Auction is Preferred

  • Transparent price discovery

  • PSU-backed credibility

  • Complete digital audit trail

  • Reduced legal & inspection risk

 

Who Should Source Minerals in Jharkhand via e-Auction

  • Steel & sponge iron plants

  • Power & energy-intensive industries

  • Cement & construction material units

  • Brick kilns and MSMEs

  • Authorized mineral traders & processors

Typical e-Auction Process (Jharkhand Context)

  1. Buyer registration with statutory documents

  2. Auction catalogue review (grade, quantity, location)

  3. Earnest Money Deposit (EMD)

  4. Live online bidding

  5. Sale confirmation & balance payment

  6. Lifting, weighment & transit compliance

 

Cost Components Buyers Must Evaluate

The final landed cost in Jharkhand includes:

  • Winning bid value

  • Royalty

  • DMF & NMET contribution

  • GST

  • Platform/service charges

  • Loading & handling

  • Transportation & transit permits

Best Practice:

Always prepare a district-wise landed cost model before bidding..

 

Compliance Risks in Jharkhand Mineral Sourcing

Risk AreaBusiness Impact
Informal sourcingSeizure & penalties
OverbiddingMargin erosion
Transit non-complianceDetention & fines
Payment delayEMD forfeiture
Documentation gapsBlacklisting

Jharkhand is a zero-tolerance state for mineral irregularities—professional handling is essential.

Why Professional Advisory Matters in Jharkhand

Mineral sourcing here is not just commercial—it is regulatory-intensive. Businesses that succeed treat mineral auctions as a structured procurement function, not speculative buying.

Strategic Advantages of Professional Support

  • Auction eligibility & documentation readiness

  • Grade & cost-based bid strategy

  • Compliance mapping (royalty, DMF, GST)

  • Post-auction execution discipline

  • Audit-ready records