The Directorate of Mines and Geology (DMG) in Goa has initiated a significant move to conduct the fourth auction of iron ore mines in the state, with six mineral blocks scheduled to go under the hammer on April 16. According to Director Narayan Gad, the government anticipates raking in approximately Rs 230 crore as an upfront payment through this auction process, marking a crucial step in revitalizing Goa's mining sector.
Details of the Auction Blocks
In this latest round, five of the blocks are iron ore mines situated in North Goa, while the remaining block is known for its deposits of both iron ore and manganese ore in South Goa. Specifically, in North Goa, two blocks are located at Cudnem, two at Pissurlem, and one at Adwalpale-Moitem. The South Goa block, identified as the Cavorem–Maina Mineral Block, will be e-auctioned, leveraging digital platforms for efficiency.
Reserves and Operational Strategy
Gad explained that these six blocks were created from the ten working mines that existed previously, with a combined reserve estimated at around 170 million tonnes. This substantial reserve underscores the economic potential of the auction. The department has set the auction documents on sale until March 16, after which the DMG will proceed with the bidding process for mining companies on April 16.
Efforts to expedite operations are a key focus, with Gad noting that two large blocks in this auction round are being prioritized for immediate operationalization. The Chief Minister has emphasized that upon completion of the fourth auction, the government will strive to process essential approvals, such as environmental and forest clearances, on a priority basis. This proactive approach aims to enable the blocks to commence operations as early as possible, boosting the local economy.
Progress in Goa's Mining Sector
As of December, Goa has already auctioned 12 iron ore mineral blocks as part of efforts to revive the mining industry. These include mines at Bicholim, Sirigao-Mayem, Cudnem, and Kalay, with several operated by prominent firms like Vedanta Limited and Fomento Resources. Of these 12 blocks, five are fully operational, and significant progress is being made on others.
Gad highlighted that within the next 15 days, an additional block at Kaley is expected to start operating, followed by another at Honda approximately a month later. This will bring the total number of operational mining blocks to seven. Notably, the block at Kalay is set to become the first operational block in South Goa, expanding the mining footprint across the state.
Auction Process and Costs
The tender document for the fourth round of auction is priced at Rs 5 lakh per mineral block, excluding GST. This cost is part of the structured process designed to attract serious bidders and ensure transparency in the auction. The DMG's move reflects a broader strategy to leverage Goa's mineral wealth for economic growth, while adhering to regulatory frameworks and environmental considerations.
Overall, this auction represents a pivotal moment for Goa's mining sector, with the potential to generate significant revenue and create employment opportunities. The government's focus on swift approvals and operational readiness aims to maximize the benefits from these mineral resources, contributing to the state's development goals.
