Govt gets 110 bids for 24 low-grade iron ore dumps

Panaji: The directorate of mines and geology (DMG) has received a total of 110 bids for 24 low-grade iron ore dumps which have been put up for auction in the second phase. Director Narayan Gad said that around 50 companies have submitted their bids for the dumps, and some have submitted multiple bids.

Gad said that the total quantity of low-grade iron ore is over 41 million tonnes in 24 dumps. Gad said that mining companies have submitted a detailed project report (DPR), and that it would be evaluated by The Energy and Resources Institute (TERI).

Gad said in case there are queries in the DPR, another opportunity would be given to the mining companies to clarify the queries raised by TERI, so that state govt ensures maximum participation.

In the first phase of the e-auction of low-grade iron ore dumps, just one of five was auctioned. The second phase will see a much larger exercise, with 24 dumps to be auctioned across Goa in Sanguem, Dharbandora, Bicholim, and Sattari talukas, with one located in Sirsaim, Bardez.

A majority of these dumps are located in South Goa. While most are small dumps ranging from 1 lakh tonnes to 26 lakh tonnes, the largest is in Sonus, Sattari, at 10 million tonnes. During the last auction, the largest dump received bids, but the four smaller ones did not see a single bidder.

State govt fixed a reserve price of 22% for the e-auction of low-grade iron ore dumps in the state. For instance, if the Indian Bureau of Mines price is Rs 100 per tonne for low-grade iron ore and mining companies purchase the ore at auction at the 22% reserve price, companies must pay Rs 22 per tonne to govt.

The Supreme Court allowed Goa govt to carry out dump mining activity in the state in accordance with an expert committee’s report.

Panaji: The directorate of mines and geology (DMG) has received a total of 110 bids for 24 low-grade iron ore dumps which have been put up for auction in the second phase. Director Narayan Gad said that around 50 companies have submitted their bids for the dumps, and some have submitted multiple bids.

Gad said that the total quantity of low-grade iron ore is over 41 million tonnes in 24 dumps. Gad said that mining companies have submitted a detailed project report (DPR), and that it would be evaluated by The Energy and Resources Institute (TERI).

Gad said in case there are queries in the DPR, another opportunity would be given to the mining companies to clarify the queries raised by TERI, so that state govt ensures maximum participation.

In the first phase of the e-auction of low-grade iron ore dumps, just one of five was auctioned. The second phase will see a much larger exercise, with 24 dumps to be auctioned across Goa in Sanguem, Dharbandora, Bicholim, and Sattari talukas, with one located in Sirsaim, Bardez.

A majority of these dumps are located in South Goa. While most are small dumps ranging from 1 lakh tonnes to 26 lakh tonnes, the largest is in Sonus, Sattari, at 10 million tonnes. During the last auction, the largest dump received bids, but the four smaller ones did not see a single bidder.

State govt fixed a reserve price of 22% for the e-auction of low-grade iron ore dumps in the state. For instance, if the Indian Bureau of Mines price is Rs 100 per tonne for low-grade iron ore and mining companies purchase the ore at auction at the 22% reserve price, companies must pay Rs 22 per tonne to govt.

The Supreme Court allowed Goa govt to carry out dump mining activity in the state in accordance with an expert committee’s report.