Vedanta first mining firm to export freshly extracted ore

Panaji: Goa began the export of freshly extracted iron ore with the first consignment reaching China. The director of mines and geology, Narayan Gad, said that Vedanta became the first company to export freshly extracted iron ore from the state. “Vedanta exported over 3 lakh tonne of ore from Bicholim mines to China,” Gad said.

State govt put up 7.5 lakh tonne of iron ore lying at jetties and plots for e-auction on Oct 13 and 14. It was extracted prior to Sep 2012, before mining activities were banned. The last e-auction was conducted by govt almost a year ago. Govt on Sep 30, 2024, conducted the 30th e-auction of 2 million tonnes of iron ore.

Only 25% of mineral blocks auctioned by state govt since 2022 were able to start their operations. State govt conducted three auctions for 12 iron ore mineral blocks, but activities started at only three mineral blocks.

The Goa Mineral Ore Exporters’ Association (GMOEA), representing key stakeholders in the Goan mining sector for more than 60 years, has expressed concern about the possible extension of export duties to low-grade iron ore (below 58% Fe).

Mining activities came to a halt in Sep 2012 following the tabling of the Shah Commission report in the Parliament. Mining activities resumed in 2015 but were halted in March 2018 for the second time after the Supreme Court quashed the second renewal of 88 mining leases.

Goa’s mining industry kick-started operations on April 4, 2024, after a six-year shutdown, with Vedanta Sesa Goa beginning fresh extraction of ore at the Bicholim mineral block — block I.

State govt has decided to develop a mechanism to allocate maximum production limits for the auctioned mineral blocks, as the Supreme Court set a limit of 20 million tonnes for export from the state.

The handling of low-grade iron ore is set to start in the state as the DMG granted final approval to Chowgule and Company Pvt Ltd to handle 3 lakh tonne of low-grade iron ore lying outside the mining leases at Shirgao at a premium of 22%.