The Ministry of Mines on October 23, 2024, issued a Proposal for revision of the conversion factor for ASP of metallurgical grade bauxite.
The Ministry of Mines had received references/ representations from various stakeholders for revising this conversion factor stating that the ASP arrived through the present conversion factor is very high as compared to the actual price of bauxite. Also, four petitions have been filed in various High Courts challenging the said conversion factor.
The Ministry of Mines proposes to revise the conversion factor for ASP of metallurgical grade bauxite by deducting the average logistics cost per tonne. It is proposed that the revised conversion factor of 1.90% will be made applicable for cases where mining leases are granted pursuant to NITs issued after the publication of the notification for the revised conversion factor. For all other mines of metallurgical grade bauxite, the conversion factor would remain at 6.4%.
A notification for revision of the conversion factor for metallurgical grade bauxite is enclosed herewith for seeking comments/suggestions from the general public, Governments of States and Union Territories, mining industry stakeholders, industry associations, and other persons and entities concerned.
Accordingly, it is requested to kindly furnish comments on the proposal on or before November 23, 2024. The comments may be furnished by email at: [email protected]. The subject of the e-mail should be "Comments/suggestions on the proposal for revision of conversion factor for ASP of metallurgical grade bauxite".
[Notification No. 16/150/2015-M.VI (Part II)]
