MYSORE MINERALS LIMITED (A Government of Karnataka Undertaking)

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1 MYSORE MINERALS LIMITED (A Government of Karnataka Undertaking) Regd. Office No.39, MG Road, Bangalore Phone: /4/5 Fax: ( e-tender NO: MML/MKT/MAG/e-TENDER/325/ Date: e - TENDER NOTIFICATION e-tender for sale of Magnesite Ore under Sale Contract Mysore Minerals Limited [MML] invites e-tenders for Sale of Magnestite from Allaiyanapura Magnesite Mine held in Karnataka on as is where is basis under Marketing Contract. CALENDER OF EVENTS Particulars On / From 1 Pre-bid meeting Venue: MML, Head Office at A.M. 2 Last date of e-tender submission Upto Hrs. 3 Technical Bid At A.M. Opening 4 Price Bid Opening subject to completion of Technical Evaluation interested parties viz individuals / Firms / Companies may download the e-tender document from e-governance GOK platform website and participate in the tender. They are requested to register in the e-procurement platform well in advance. For any support please contact: a) Helpdesk: / b) Mr.NavinGowda, e-procurement Consultant, OR eproc@gmail.com c) General Manager[MKT] ( / ) OR gm.mkt.mml@nic.in. for MYSORE MINERALS LIMITED Sd/- GENERAL MANAGER [MKT] Page 1 of 19

2 E-TENDER No: MML / MKT / MAG/325/e-TENDER/ / e-tenders are invited by M/s Mysore Minerals Limited (MML), a company registered under the provisions of Companies Act, 1956 and having its Registered Office at No. 39, United Mansions, MG Road, Bangalore represented by its General Manager[MKT], for Sale contract of Magnesite ore from Allainapura Magnesite Magnesite Mine in Karnataka State. TERMS AND CONDITIONS: 1. ELIGIBILITY CRITERIA TO PARTICIPATE IN THE E-TENDER:- i) Bidder should be an Indian Individual / Firm / Company/Consortium being Income Tax Assessee with a positive Net worth of not less than Rs lakhs as at the end of FY Bidder should have registered a turnover of not less than Rs lakhs for any one financial year during the last three years FY to FY *In case Audited Balance Sheet for is not yet completed, then the Provisional P&L Account / balance sheet duly certified by a Chartered Accountant would be considered for figures required at ( i) and( above. i iv) To participate in tender for Magnesite bidder must have continued experience in extraction or marketing of mineral to an extent of at least 10,000 tonnes in any one financial year during the last three year period from Financial Year to Financial Year Bidder should have valid a. PAN number from the IT Dept, b. TIN Number from the Commercial Tax Dept for VAT, c. Service Tax Registration for mining or marketing of minerals. d. In case of an exporting unit, Exporter Importer IEC code number e. In case of Small Scale Industries, Registration certificate issued by Competent Authority. f. Marketing Agency should have registered/tion with DMG/IBM. v) Bidder, in case is associated presently or was in the past, with MML, in any manner, should obtain No Objection Certificate (NOC) from MML, Head Office. vi) v Individual / Firm / Company / Consortium connected or related to bidder in any form, operating any mine either on their own or as a Raising or Marketing Agency for similar minerals within a radial distance of 15km from MML Mine notified for the tender, are not eligible to participate. Conditional bid will not be entertained. Page 2 of 19

3 **If application is being made in the name of a new firm, one of the partner/ promoter with 51% more shareholding should fulfill all the above qualifying criteria. Bidder who does not fulfill any of the above eligibility criteria will be treated as nonconfirming & would be disqualified and their corresponding Price Bid will not be opened. 2. LOCATION OF MINE:- The details of location and address of the Magnesite mine offered under the Marketing arrangements are indicated in Annexure (1). 3. INSPECTION OF MINE:- i) Bidders are requested to inspect the Mine indicated in Annexure (1) offered in the tender for Sale Contract and satisfy themselves of the prevailing operational conditions before agreeing for e-tender conditions and quoting the e-tender prices. MML will not entertain any dispute / claim regarding a.. extent of the Mine, b. quantity of the material, c. grade of material, d. site operating conditions, e. accessibility / approach roads / logistics, f. supporting infrastructure and such other issues in whatsoever manner during the currency of the contract or later. g. all bids shall be construed & perceived to be on as is where basis. i Mine inspections will be allowed during the period to by the respective Mine Manager/ authorized representatives of MML [contact numbers indicated in Annexure (2). 4. DOWNLOADING OF e-tender APPLICATION FORM:- Bidders should download documents from e-governance GOK platform website 5. SUBMISSION OF BIDS:- i) Bidder should upload the prescribed e-tender bids (Annexure 3) enclosures as specified therein. Page 3 of 19

4 6. UPLOADING OF DOCUMENTS FOR e-tender:- i) Technical Bid containing a. Tender Application Form [Annexure 3] duly filled in. Audited Balance Sheet and Statement of Profit and Loss for the FYs , and (In case Audited Balance Sheet for is not yet completed, then, Provisional P&L Account / Balance Sheet duly certified by a Charted Accountant should be uploaded). d. Certificate of proprietorship in case of individuals. e. Copy of the Partnership deed in respect of Partnership firm and Memorandum & Articles of Association in respect of Private Limited Company. f. Proof of experience in Mining or Marketing of minerals with-in the country or abroad (as specified at Clause 1(i above. g. Copies of PAN card and Income Tax returns filed / IT Assessment orders for the years , h. Service Tax Registration Certificate for Mining operation and or for Trading. i. TIN No. - Certificate j. NOC from MML if applicable, as specified at Clause 1(v). k. Self Declaration to certify Clause 1(vi) l. Registration Certificate from DMG & IBM NOTE: # Price Bid in any form shall not be uploaded with Technical Bid. If done so, such application shall be rejected and EMD will be forfeited. ## Bidder shall produce the original documents at the time of Technical bid scrutiny, if necessary. Price Bid containing, a. Price Bid Quote as per Annexure-4 uploaded separately for the Allaiyanapura Magnesite mine, grade wise. b. Total Minimum sales per annum quoted for every year for the agreement period in Metric tones. Page 4 of 19

5 c. price quote excluding royalty, applicable taxes etc, ex-mine, for different grades of Magnesite in Indian Rupees. d. Quantities and rates to be quoted for specified grades without fail for the mine. i iv) Bidder shall specify the minimum sales per annum and price quote both in figures and words. In case of any confusion or discrepancy among figures, the quotes in words will prevail. Incomplete Price Bid shall be deemed as non compliant and will be rejected. v) Any modification in Price Bid format including the one which has effect on price or value of the offer shall render the bid rejected without notice and further reference to the bidder. vi) Submission of unsolicited revised offers shall result in rejection of the application. 7. MML S RIGHT TO ACCEPT / REJECT BIDS:- MML reserves the right to accept or reject any Bid and to annul the entire Bid process and reject all Bids at any time prior to award of tender without thereby incurring any liability to the affected Bidders or any obligation to inform the affected bidders of the grounds for MML's action and further subject to all statutory clearances in respect of Allainapura Magnesite Mine. 8. VALIDITY OF BIDS:- The bids shall be valid for not less than 180 days from the closing date and shall not be withdrawn before that date. In case of any default in this regard, EMD shall be forfeited. MML may at its discretion can extend the validity period beyond 180 days subject to consent of the Bidders. 9. OPENING OF e-tender:- i) Technical bid will be opened at AM on Technical Bids would be evaluated by e-tender Scrutiny Committee. i Price Bid of only technically qualified bidders will be opened by the Committee. Page 5 of 19

6 10. EARNEST MONEY DEPOSIT (EMD) AND PROCESSING FEE :- i) EMD of Rs.5.00 lakhs should be paid by the bidder through e-governance platform along with Processing Fee as fixed by the e-governance Department. III) IV) As per the procedure of e-governance Department, refund of EMD to the unsuccessful bidder will be done after the e-tender process is completed. EMD and Processing Fee amount shall be paid to e-governance Department through any of following e-payments modes Credit / Debit card, NEFT / RTGS or OTC. EMD does not carry any interest. V) For unsuccessful tenderers the EMD will be refunded only after the completion of the tender process. 11. PRICE BID EVALUATION:- The bid evaluation criteria as adopted by MML are final and binding on the bidders. i) MINIMUM SALES: a. Minimum sales quantities quoted should be equal to or more than the minimum production limit. b. should not be more than the quantity permitted under Mine Lease Documents as provided in Annexure (1) c. Incase total minimum sales quantities are not specified by the Bidder then MML may consider the bid at prescribed minimum Quantities as set in the Tender at Annexure (1) for evaluation. EVALUATION OF PRICE BIDS FOR MINE: MAGNESITE Bid will be evaluated based on the price quoted in Annexure-4. a. OTHER CONDITIONS: i) If for any reason, highest rates quoted in the tenders fall short of expectations, MML may refuse to accept the offers and instead fix its own selling price. In such an event, the Highest bidder is evaluated and determined. Page 6 of 19

7 The award of marketing contract for the mine under e-tender is subject to evaluation as above and a) Clearances and approval of MML Board b) Approval from statutory agencies, if any. i Successful bidder identified through price bid evaluation as above will be issued a Letter of Intent (LoI) and will be given TWELVE working days time from the date of despatch to accept the LoI. In case, Letter of Consent accepting the offer is not received within TWELVE working days from the successful bidder, the LoI stands cancelled and EMD of the successful bidder will be forfeited. iv) EMD of any bidder refusing / withdrawing his bid at this stage will be forfeited. v) In the event of successful bidder identified and offered with LoI as at (i above does not consent for taking up the job, then, all the remaining qualified bidders will be invited to quote their best rates (next below the highest rate agreed by the successful bidder) through sealed cover. The best rate will be considered. In case, the successful bidder does not respond to the LoI with in TWELVE days from the date of issue, EMD of the selected bidder will be forfeited. 12. SALE ADVANCE: Company at its discretion may consider or reject the price received through sealed cover. vi) MML reserves the right to negotiate with eligible bidders regarding price, terms and conditions, methodology of negotiations in the best interest of the Company and its decision will be final and binding on such bidders. i) Successful bidder shall pay 10% [ Ten percent] of average selling price fixed on minimum sale target fixed per year as Sale Advance. SA= (AVERAGE SELLING PRICE FIXED FOR THE YEAR X MINIMUM SALE TARGET AGREED) X 10% For the first year, Sale Advance shall be deposited with MML by the successful bidder within 7 working days of signing of Marketing Agreement and will not carry any interest. Page 7 of 19

8 i iv) Sale Advance be retained with MML till the sale of last consignment and adjusted against the value of the same or returned to the Marketing Contractor on successful completion of the Contract In the event of levy of any penalty on the marketing contractor for reasons of non performance / non compliance of conditions imposed under the contract, such penalty will be deducted inter-alia out of the sale advance and the marketing contractor shall make good the short fall in sale advance immediately within 30 days from the date of such deductions. v) Sale Advance in subsequent years of contract shall be proportioned as per the Selling Price hike as stated at Clause 15 and be deposited with MML with in seven days of commencement of the said agreement year. vi) v Sale Advance will be forfeited, if the successful bidder fails to pay the Sale Advance as prescribed. Entering in to Marketing Agreement shall establish the Marketing Contract and MML shall place a Work Order in this regard to Marketing Contractor. 13. PERIOD OF MARKETING CONTRACT / AGREEMENT:- i) Marketing Contract / Agreement shall initially be in force for a period of THREE years from the date of signing of Agreement. i iv) Marketing contractor shall be provided with one month period after expiry of agreement period only for selling the Magnesite produced during the last month of agreement. Entering into agreement shall establish the marketing contract and MML shall place the work order in this regard to Marketing Contractor. In the event of discontinuance of contract due to FORCE MAJEURE, period of marketing agreement subject to consent of MML, shall be extended to a period equivalent to the periods affected due to Force Majeure. v) MML at its discretion may extend the agreement for a further period of TWO years, subject to satisfactory performance. 14. GESTATION PERIOD:- i) Successful Bidder / Marketing Contractor will be provided a Gestation period of TWO months in the first year. Page 8 of 19

9 Monthly Sales target will not be insisted / enforced during the Gestation period. The target quantity for the first year will be reduced prorates. i The maximum contract period of THREE years specified in Clause 13 above is inclusive of the Gestation period. iv) In the event Marketing Contractor desirous to sell / dispatch the Magnesite during the Gestation period, the quantity so sold shall be taken into account for evaluation of performance for the financial year. 15. REVISION OF SELLING PRICE:- i) Selling price shall be revised once in every Financial Year as per the prevailing marketing rates 16. QUANTITY TO BE SOLD:- i) Marketing Contractor shall sell the minimum quantity of Magnesite as per the quantity proposed in the Price Bid and subsequently agreed in the Marketing Agreement. However, the same shall be subject to actual quantity of Magnesite extracted by MML. i The maximum quantity saleable in a year shall be restricted to the quantity permitted (consent quantity). MML shall arrange for extraction/mining of the Magnesite as agreed. MML shall supply Magnesite to the Marketing Contractor during the agreement period. Or iv) Marketing Contractor shall nominate a Raising Contractor of his choice for raising of ore in accordance with the guidelines / terms and conditions, as provided at Annexure-6. v) The nomination of raising agency shall be communicated to MML along with the Letter of Consent. 17. PENALTY:- i) Penalty equivalent to 10% of the average selling price for the short fall against the agreed sales target in tonnes shall be levied on the Marketing Contractor for penalty average quality and quantity will be considered. Sales target will be the quantum of Magnesite extracted by MML/raising contractor in the agreement year or the minimum annual sales targets whichever is less. Page 9 of 19

10 i Shortfall will be assessed on yearly basis (agreement year). If the period of assessment is less than a year, it will be assessed prorata. On shortfall in sales penalty as arrived above shall be recovered out of Sale Advance. In the event of any penalty, deducted interalia out of the Sale Advance, marketing contractor shall make good the shortfall in Sale Advance within 30 days from the date of such deductions. 18. SPECIFICATION OF SIZE / QUALITY:- Magnesite will be measured for; a. Magnesite will be analysed by appointing Chemist from MML at our Chemical Laboratory, Byrapur Chromite Mine. b. Marketing Contractor if not satisfied with our analysis referee sample will be analysed by the Neutral Analyser and expenditure to be borne by both the parties equally. c. Payment of royalty cess and applicable taxes, the Magnesite shall be measured as per the guidelines issued by O/o Director of Mines and Geology, GoK. d. Magnesite ore shall be weighed at weigh bridge maintained by MML at Karya Magnesite Mine by officials of MML, in presence of representative of Marketing Contractor. The records maintained by MML regarding size / grade of ore shall be final and binding. e. MML will not assure quantity/ quality in extraction of different grades of Magnesite. 19. INSPECTION OF MAGNESITE MINE:- i) Marketing Contractor shall cause inspection of quality of the Magnesite at the mine site by making his own arrangements & cost. Any rejection of the ore shall be effected at the mine site itself. i iv) In case of any dispute between MML and the Marketing Contractor that may arise with regard to grade of the Magnesite, specification, quality of the Magnesite, the decision of the MML shall be final. MML will not accept claims due to size / grade variation as a cause for rejections. The offer of sale by MML is on Grade wise Assessment Basis. No disputes shall be entertained after the acceptance of the e-tender. Page 10 of 19

11 20. PAYMENT TERMS:- i) Marketing Contractor shall remit the sale value of the Magnesite and also separate amount towards royalty, cess & applicable taxes etc. within one week from the date of making available saleable Magnesite. i iv) The selling price will be on net weight of ore excluding royalty, loading charges, cess and applicable taxes etc. which are payable to the Manager at Mine shall be paid by the purchaser from one week from the date of approval of the mineral selected for sale. MML will facilitate to obtain way permits from the authorities for Sale of Ore to facilitate transportation. Marketing Contractor will be permitted to lift Ore from the Mine only after issue of Delivery Order by MML.. v) Marketing Contractor shall arrange to lift the ore from mine site within three months from the date of issue of Delivery Order. vi) v vi If Marketing Contractor fails to lift the ore even after three months from the date of issue of delivery order, MML will resume the un-sold ore and dispose the ore as it deems fit. Shortfall in sales realization if any on account of such sale with reference to the sales prices agreed in the marketing agreement will be recovered out of the sale advance. Marketing contractor shall make good the shortfall in sale advance within 30 days from the date of such deduction. No complaint of any nature will be entertained after the approval & sale of Magnesite ore and such sale will be at the risk of the buyer. After successful completion of the contract period of (3+2 yrs) the further extension will not be entertained. 21. TERMINATION OF CONTRACT:- i) MML will have the right to suspend / terminate the marketing contract, if in its opinion that there is breach of contract / non performance, etc., on the part of Marketing Contractor, by giving one month s notice. Marketing Contractor shall be responsible for any un-authorised movement of Ore produced or for any losses / damages on account of theft. In such cases, Marketing Contractor shall reimburse such monitory losses to MML including royalties, cess/ applicable taxes payable on such missing ore. MML reserves the right to levy penalty besides termination of agreement with forfeiture of Sale advance and security deposit. i Breach of contract, non performance, observation of violation of laws / restrictions levied by the enforcing agencies including alleged illegal mining activities and failure to comply with the terms and conditions Page 11 of 19

12 22. INDEMNITY:- stipulated in the raising agreement, if lead to termination of raising agreement, then MML will have the right to entrust the raising contract for the balance period in the agreement to others. In this regard, MML may provide an opportunity to Marketing contractor to replace the raising contractor. However, all the cost and risk involved in either case shall be to the account of marketing contractor. The successful bidder / Marketing Contractor shall undertake to indemnify the MML against any action or proceedings, cost or claims, loss or damages to which MML may be exposed to as a result of any act of omission or commission. 23. FORCE MAJEURE:- Delivery is agreed upon in good faith and MML shall not be liable for any real or perceived damage / claim or otherwise for failure to carry out the obligation which may be occasioned by an Act of God, earth quake, land slide, floods, drought, war, civil disturbances, disorders, labour strikes, non availability of approvals from Govt. authorities and or restraining orders from any statutory authorities governing the mining industry, orders of the Judicial authorities, Govt directions or similar such circumstances beyond the control of MML. In the event of discontinuance/s of contract due to FORCE MAJEURE period of Marketing agreement shall be extended, subject to consent of MML. to a period equivalent to the period affected due to force majeure will be equivalent to the period. 24. ARBITRATION:- In the event of any disputes or differences whatsoever arising between the Marketing Contractor and MML out of or relating to the execution, meaning and operation or effect of Marketing Contract or the breach thereof shall be referred to the Managing Director of MML, who shall be the sole arbitrator. Any award made by MD, MML as ARBITRATOR, shall be final, conclusive and binding on both the parties. The venue of the arbitration shall be at Karnataka Arbitration Centre (Domestic and International) located at Khanija Bhavan, Bangalore. 25. JURISDICTION:- Courts situated within the City of Bangalore alone shall have jurisdiction to decide all disputes and claims that may arise between Marketing Contractor and MML. Page 12 of 19

13 26. ASSIGNMENT:- Once awarded to a specific bidder, the marketing contract is neither transferable nor assignable in any manner whatsoever. 27. DISCRETION:- i) Sale under this offer does not give an exclusive right to Marketing Contractor to purchase of Magnesite raised by the MML/ Raising Contractor. MML reserves the right to utilize upto 25% of the production for its own use or sell part of such production to others as well. i iv) However, Sales target shall be reduced to that extent in case MML purchases the quantity. MML reserves the right to cancel the bid even after acceptance and before execution of agreement for valid reasons of breach of tender conditions, if any. Similarly, MML also reserves its right to suspend / cancel the contract during the operational phase of the contract in the event of breach of tender conditions, if any, as assessed by MML. 28. GENERAL:- i) Bidder [Marketing Contractor] specifically agrees that in respect of any dispute arising out of the post selection agreement with MML, he shall not approach any higher judicial forum without exhausting the avenue of arbitration as specified in Clause 25 of the tender conditions above. i Marketing contractor shall nominate an authorized representative and in all matters of day to day commercial interaction, MML would only deal with the authorized representative and would not deal with any other person/s. The agreement on non-judicial stamp paper to the value of not less than Rs.200/- incorporating the above conditions has to be executed by the successful bidder within 21 working days from the date of receipt of Letter of consent, simultaneously with raising agreement. The draft agreement will be prepared by MML and sent separately after finalization of the tenders. MANAGING DIRECTOR Page 13 of 19

14 ANNEXURE 1 MAGNESITE MINE OFFERED FOR RAS CONTRACT SL Name of the Mine ML No. validity & extent area Maximum permissible Sales Target in Mts per year as per ML Minimum Sales Target in Mts per year Probable Raising Cost per MT. exclusive of Service Tax Allaiyanapura Magnesite Mine, Kottur Post Hullahalli (Via) Nanjangud Tq, Mysore Dist ha Applied for deemed approval Silica content % 3 6% Rs.2,110/- Rs.1,950/- Specified EMD in Rs lakhs Page 14 of 19

15 ANNEXURE 2 Persons to contact Sl. No. Name of the Magnesite Mine Address of the Manager Contact No Phone/ Mobile 1 Allaiyanapura Mine Manager Mysore MINerals Limited Allaiyanapura Magnesite Mine, Kottur Post Hullahalli (Via) Nanjangud Tq, Mysore Dist Mob Ph Page 15 of 19

16 ANNEXURE 3 e- Tender form for Marketing of Magnesite ore under Sale Contract Sl. Item No 1 Name and full postal address of the Tenderer Details Telephone No. Mobile No. Fax No. No. Proof of address 2 Address for communication 3 Status of the company (Private / Public Limited Company /Partnership / Proprietorship). Please specify 4 Nature of Organization (Please specify) i] SSI ii] Med & large unit iii] Trader-Domestic iv]trader-exporter 5 Nature of Business i] Manufacturing ii] Mining iii] Trading iv] Others (please specify) 6 Export/Import Code, if any 7 Income Tax Assessee i] PAN No. ii] Income Tax returns - Page 16 of 19

17 Turnover during last 3 years [ Rs Lakhs]: Net profit during last 3 years [ Rs Lakhs]: Bankers reference, if any 11 Brief write up about the Company 12 Any other relevant information 13 Documents to be uploaded as per Para 6 (1) I / We hereby declare that :- DECLARATION a. the particulars uploaded are factual & correct and we are agreeable to furnish any other information / details as may be required by Mysore Minerals Limited(MML). b. we also agree & declare that we are fully familiar with the terms & conditions of the this e-tender for marketing of Magnesite through e-tender process as notified by MML and agree to abide by the terms and conditions issued by MML. Date : Place : [Signature of the Bidder] [Name with Full address] (# Bidder may add an additional pages to provide the relevant information.) Page 17 of 19

18 PRICE BID FOR SALE OF MAGNESITE ORE ANNEXURE 4 MML e-tender Notification No:- Date MAGNESITE ORE ALLAIYANAPURS MAGNESITE MINES, NANJANAGUD Tq, MYSORE DIST. Conditions:- (i) I/we have gone through e-tender notice and agree to abide by all the conditions mentioned therein. ( (i (iv) Sl No. 1 I/we hereby quote at the rate specified below grade of Magnesite I / we agree & understand that the EMD would be forfeited in case of violating the terms and conditions of e-tender. Price quoted for MAGNESITE ORE Silica content of magnesite 1 to 2.99% Total Minimum sales per annum in MTS. (in figures & words ) Sale Price Offered in Rupees per tonne on ex-mine basis, excluding royalty, cess, VAT, and other applicable taxes and statutory levies (in figures & words ) 2 3 to 6.00% Contact No: Mobile No: Fax No: Signature of the Tenderer with full name & address Page 18 of 19

19 ANNEXURE 5 Desired list Mining equipments & Machineries to undertake scientific ore extraction/development to be possessed either on ownership or under long term lease basis by the raising contractor appointed by the Marketing Contractor. The equipments should not be older than 5 years as on Sl. Name / type of No equipment 1 Back Hoe Excavator (Hydraulic) Model Capacity Remarks Hyd. Excavator Model 220 (Tata or L&T) with rock breaker attachment Hyd. Excavator Model 210 (Tata or L&T) without rock beaker and with mining application bucket 2 Tippers Tippers 10 tonnes carrying capacity = 2 Nos. 3 Water Tankers 6000 ltrs.= 1 No. with water pump attached tanker and water sprinkling facility Page 19 of 19

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