Laxmi Capital News
Chinese firm paid record fee for Dhading limestone mine

A Chinese company hasacquired a license for detailed exploration of limestone in Dhading paying Rs600 million - a record fee that any mine and mineral company have paid.

Department of Mines andGeology (DoMG) awarded the license for exploration in Panikharka of Dhading toHuaxin Cement Company of China.

Huaxin has received approvalfrom the government to invest Rs 15 billion in a cement plant.

The company bid the highestamount in an open bidding for 15 mines, including three mining licenses. This wasthe first time that the government invited bids for limestone mines, askinginterested companies to submit their financial proposal. 

“Rs 600 million is a recordfee paid by any company for the license in our mining history. We could getsuch a huge fee, thanks to fierce competition amongst companies,” Ram PrasadGhimire, deputy director general of DoMG, told Republica. 

“This time, we askedcompanies to submit their financial proposal with their bid. In the past, weused to evaluate only the technical proposal and award license by charging afee spent by the government while identifying limestone mines and few othercosts,” explained Ghimire. 

As many as six cementcompanies, including Dangote Cement Nepal Pvt Ltd and United Cement Pvt Ltd,had participated in the bidding. United Cement bid only Rs 120 million for themine, while Dangote Cement Nepal was disqualified in the technical evaluation.

Huaxin has already signed apreliminary agreement with Investment Board Nepal (IBN) to set up a cementplant in Dhading having capacity to produce 3,000 tons of cement per day.

As finding new limestonedeposit is almost impossible, companies interested to set up cement plant oftenbuy license from others. Many limestone mines are held by some individuals andfirms for years. 

United Cement, which lostthe Panikharka mine to Huaxin, managed to get another mine in Kailash inDhading by paying about Rs 60 million. 

Highest bidder failsto turn up for final agreement 

Shree Nepal Swabhiman PvtLtd has failed to turn up for signing agreement for mining license ofLakharpata limestone deposit in Surkhet.

According to Department ofMines and Geology, the company had bid the highest price of Rs 140 million forthe mining license. But it failed to turn up at the department for finalagreement within the given timeframe of a month. 

“We are now preparing topublish a notice, asking the second bidder to come and sign agreement for themining license,” said Ram Prasad Ghimire, deputy director general of thedepartment. 

The second bidder, BishalCement Pvt Ltd, has bid Rs 70 million for the license.

 

Source: MyRepublica, 3rdJanuary 2018

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